Understanding Your Ontario Hydro Bill, Line by Line

An Ontario electricity bill can look like a list of unfamiliar charges, but it follows the same structure across the province whether your local distribution company (LDC) is Hydro One, Toronto Hydro, Alectra, Hydro Ottawa, Elexicon, Enova, London Hydro or another utility. Once you know what each line pays for, you can see which parts you can control and which you can't.

This guide explains each section, walks through an illustrative bill and lists practical ways to lower the parts you do control. Rates are set by the Ontario Energy Board (OEB); see oeb.ca (opens in a new tab) for official details.

The four main parts of your bill

Line on bill	What it pays for	Depends on
Electricity	The energy itself (commodity)	Your kWh and your price plan (TOU, ULO or Tiered)
Delivery	Building and running local wires, transformers and the transmission grid	Mostly a fixed monthly charge, plus a per-kWh transmission portion; varies by LDC
Regulatory	Running the wholesale market, smart meter data and other system costs	Mostly per kWh, plus small fixed amounts
HST	13% harmonized sales tax	Applied to the charges above
Ontario Electricity Rebate	Provincial credit on the bill	15.7% of the pre-tax amount from 1 November 2026

Some bills also show a separate line for a debt or late-payment charge, a credit for the Ontario Electricity Support Program (OESP), or net metering credits if you have solar.

Electricity (the commodity charge)

This line shows how many kWh you used and what you paid for them under your Regulated Price Plan option. From 1 November 2026 to 31 October 2027 the OEB prices are:

Plan	Prices (¢/kWh)
Time-of-Use	Off-peak 9.1 · Mid-peak 14.6 · On-peak 18.9
Ultra-Low Overnight	Overnight 3.7 · Weekend off-peak 9.1 · Mid-peak 14.6 · On-peak 37.7
Tiered	Tier 1 11.2 · Tier 2 13.2 (threshold 1,000 kWh/month in winter, 600 in summer)

On TOU and ULO bills, usage is broken out by period. Look at the share of your usage in on-peak hours; that is where shifting saves the most. Our price plans guide has the full schedules.

Note: Many LDCs apply a small loss factor, often a few percent, to the kWh you are billed for, to account for energy lost on the local wires. This is why billed kWh can be slightly higher than your meter reading.

Delivery

Delivery is often the largest line after electricity, and sometimes larger. It typically combines:

A fixed monthly distribution charge. Over the past decade the OEB moved residential distribution rates to a fixed monthly charge, so you pay roughly the same whether you use 300 kWh or 1,300 kWh.
Transmission charges. These are per kWh and pay for the high-voltage grid.
Rate riders. Temporary adjustments, positive or negative, approved by the OEB.

Delivery costs vary significantly by LDC and by density. Customers in low-density rural areas, especially many Hydro One rural customers, typically pay much more for delivery than urban customers because there are fewer customers per kilometre of line. Rural and remote customers may receive a distribution rate protection credit, which shows up as a lower delivery charge.

Because most of delivery is fixed, cutting usage reduces your bill by less than you might expect. That matters when estimating savings from efficiency upgrades or solar.

Regulatory charges

This line bundles several small items, typically including a wholesale market service charge, a smart metering charge and a standard supply service charge. Together they usually amount to a few dollars a month for a typical home. You cannot shop around for these.

HST and the Ontario Electricity Rebate

HST at 13% is calculated on your charges. The Ontario Electricity Rebate (OER) is a percentage credit calculated on the pre-tax subtotal. It drops to 15.7% effective 1 November 2026, from 23.5%. For a typical home this lower rebate adds several dollars or more to every monthly bill, even if your usage and price plan don't change. See our post on November 2026 price changes.

An illustrative bill

The example below is for a Toronto-area home using 750 kWh in a winter month on TOU, with a typical usage split of about 64% off-peak, 18% mid-peak and 18% on-peak. Delivery and regulatory figures are illustrative estimates; yours depend on your LDC.

Line	Calculation	Amount
Electricity	480 kWh × 9.1¢ + 135 kWh × 14.6¢ + 135 kWh × 18.9¢	$88.91
Delivery (illustrative)	Fixed charge plus transmission	$42.00
Regulatory (illustrative)		$4.00
Subtotal		$134.91
HST	13% × $134.91	$17.54
Ontario Electricity Rebate	15.7% × $134.91	−$21.18
Total		$131.27

That works out to about 18¢ per kWh before HST and the rebate, and about 17.5¢ per kWh all-in. Rural customers with higher delivery charges will see higher totals.

Reading your usage and spotting problems

Check "actual" vs "estimated." Smart meters normally provide actual reads. If you see repeated estimates, contact your LDC.
Compare to the same month last year. Weather drives a lot of variation; a jump with similar weather suggests a new load, such as a failing fridge, a sump pump running constantly or a block heater left on.
Use your LDC's online portal. Most show hourly data. Look at your overnight base load; a home that never drops below 400–500 W overnight may have significant standby loads. Our guide to phantom loads can help.
Estimate appliance costs. Our appliance energy cost calculator converts wattage and hours into dollars.

What you can control

Bill part	Can you reduce it?	How
Electricity	Yes	Use less, shift to cheaper hours, pick the best plan
Delivery (fixed)	No	Not affected by usage
Delivery (transmission)	Somewhat	Use less
Regulatory	Somewhat	Use less
Rebates and credits	Sometimes	Apply for OESP if eligible

Help with bills

Ontario Electricity Support Program (OESP). A monthly on-bill credit for lower-income households, with amounts based on household size and income.
Low-income Energy Assistance Program (LEAP). Emergency help for customers behind on their bills.
Equal or budget billing. Most LDCs offer a plan that spreads costs evenly across the year.
Arrears arrangements. LDCs must offer payment arrangements in some situations, and the OEB sets rules on winter disconnections for non-payment. Confirm current protections at oeb.ca (opens in a new tab).

Our guide to income-qualified energy programs also covers free home upgrades through the Energy Affordability Program.

Frequently asked questions

Why is my delivery charge higher than my electricity charge?

Delivery covers the cost of the wires network, which is largely fixed regardless of how much you use. In low-density rural areas there are fewer customers to share those costs, so delivery can exceed the commodity charge, particularly in low-use months.

Why did my bill go up in November 2026 if I used the same amount?

The Ontario Electricity Rebate dropped from 23.5% to 15.7% on 1 November 2026, and new RPP prices took effect the same day. Heating-season loads, such as furnace fans and lighting, also typically rise.

I live in a condo. Why don't I get a bill?

Some condos are bulk-metered, with electricity included in your fees, while others use a sub-metering provider rather than the LDC. Sub-metered bills follow different rules; check your condo corporation's agreement.

What is the "debt retirement charge" I remember from older bills?

It was removed from residential bills in 2016 and no longer appears.