• Skip to primary navigation
  • Skip to main content
  • Skip to primary sidebar
  • Skip to footer
EnergyRates.ca

EnergyRates.ca

Compare and Find the Lowest Energy Rates

Contactez-nous1-855-635-9608
  • Alberta
    • Regional Energy Services
      • Calgary Electricity Providers and Natural Gas Services
      • Edmonton Electricity Providers and Natural Gas Services
      • Fort McMurray Electricity Rates and Natural Gas Services
      • Grande Prairie Electricity Providers and Natural Gas Services
      • Medicine Hat Electricity and Natural Gas Services
      • Red Deer Electricity Providers and Natural Gas Services
      • Crowsnest Pass Electricity Retailers and Natural Gas Providers
      • Cardston Electricity Retailers and Natural Gas Services
      • Fort Macleod Electricity Providers and Natural Gas Suppliers
      • Ponoka Electricity Providers and Natural Gas Retailers
      • Fort Saskatchewan Electricity Providers and Natural Gas Services
      • Cold Lake Electricity Providers and Natural Gas Services
    • Rates & Information
      • Alberta Carbon Tax and Rebates
      • Regulated Services
      • Rate of Last Resort (ROLR): How the Regulated Option Works in Alberta
      • Utilities Consumer Advocate and UCA Helps
      • Cut Your Farm’s Energy Costs
      • Breaking Down Your Alberta Electricity and Natural Gas Bills
      • Obtaining Financial Assistance
      • Energy Disconnection and AUC Winter Reconnection Program
      • Electricity and Natural Gas Mediation
      • Electricity Services for Rental Properties
      • Who is my Energy Provider?
      • Micro-Generation in Alberta
    • Alberta Electricity and Natural Gas Companies
      • AltaGas
      • ATCO Energy
      • Direct Energy
      • ENMAX
      • Hudson Energy
      • Just Energy
      • Link Energy
      • Superior Energy
      • TransAlta
      • Spot Power
      • UTILITYnet
      • ACE Energy
      • Sponsor Energy
      • Burst Energy
    • Alberta Regulated Rate Providers – Natural Gas and Electricity
      • AltaGas
      • City of Lethbridge Electric Utility
      • Direct Energy
      • ENMAX
      • EPCOR
    • Small Commercial Fixed Rate Providers
      • ENMAX
      • EPCOR
    • Wire Service Providers
      • AltaGas
      • City of Lethbridge Electric Utility
      • ENMAX
      • EPCOR
      • FortisAlberta
    • Energy Efficiency Alberta Programs
  • British Columbia
    • Regional Energy Services
      • Vancouver, BC Electricity Retailers and Natural Gas Providers
      • Surrey Electricity Providers and Natural Gas Services
      • Burnaby Electricity Providers and Natural Gas Services
      • Victoria, BC Electricity Retailers and Natural Gas Providers
    • Rates & Information
      • Breaking Down Your British Columbia Electricity & Natural Gas Bills
      • Explaining Your British Columbia Electricity & Natural Gas Rates
      • How to Read Your British Columbia Electricity & Natural Gas Meters
      • Why the British Columbia Energy Market is Regulated
      • How to Start, Transfer, or Change Your Electricity and Natural Gas Services in British Columbia
    • British Columbia Natural Gas Retailers
      • FortisBC & Tarasen Gas
      • Access Gas Services
      • Planet Energy British Columbia
      • Direct Energy British Columbia
      • Just Energy British Columbia
      • Summitt Energy British Columbia
    • British Columbia Natural Gas Retailers
      • Access Gas Services
      • Bluestream Energy
      • AltaGas British Columbia
      • Direct Energy British Columbia
      • Just Energy British Columbia
      • Planet Energy British Columbia
      • Summitt Energy British Columbia
    • British Columbia Natural Gas Retailers
      • BC Hydro
      • FortisBC & Tarasen Gas
    • Home Renovation and Appliance Rebates
  • Manitoba
    • Regional Energy Services
      • Winnipeg Electricity Providers and Natural Gas Services
      • Brandon, Manitoba Electricity Providers and Natural Gas Services
      • Steinbach Electricity Providers and Natural Gas Services
    • Rates & Information
      • Breaking Down Your Manitoba Electricity & Natural Gas Bills
      • Explaining Your Manitoba Electricity & Natural Gas Rates
      • How to Read Your Manitoba Electricity & Natural Gas Meters
      • How to Start, Transfer, or Change Your Electricity and Natural Gas Services in Manitoba
      • Why the Manitoba Energy Market is Regulated
    • Manitoba Natural Gas Retailers
      • Just Energy
      • Planet Energy
    • Manitoba Natural Gas Retailers
      • ECNG Energy
    • Manitoba Natural Gas Retailers
      • Manitoba Hydro
    • Manitoba Energy Efficiency Programs
  • Ontario
    • Regional Energy Services
      • Ottawa Electricity Providers and Natural Gas Services
      • Mississauga Electricity Providers and Natural Gas Services
      • Toronto Electricity Providers and Natural Gas Services
      • Brampton Electricity Providers and Natural Gas Services
      • Hamilton Electricity Providers and Natural Gas Services
      • London, Ontario Electricity Providers and Natural Gas Services
      • Markham Electricity Providers and Natural Gas Services
      • Kitchener Electricity Providers and Natural Gas Services
      • Windsor Ontario Electricity Providers and Natural Gas Services
      • Burlington Electricity Providers and Natural Gas Services
      • Sudbury Electricity Providers and Natural Gas Services
      • Oshawa Electricity Providers and Natural Gas Services
      • Barrie Electricity Providers and Natural Gas Services
      • Guelph Electricity Providers and Natural Gas Services
      • Oakville Electricity Providers and Natural Gas Services
    • Rates & Information
      • Why the Ontario Energy Market is Regulated
      • Explaining Your Ontario Electricity Rate
      • Explaining Your Ontario Natural Gas Rates
      • Breaking Down Your Ontario Electricity Bill
      • Breaking Down Your Ontario Natural Gas Bill
      • What is the Global Adjustment?
      • How to Set Up Your Utility Service When You Move in Ontario
      • Does Your Ontario Energy Provider Require a Security Deposit?
      • How to Renew Your Energy Contract
      • How to Start Natural Gas Service for the First Time
      • Canceling an Ontario Energy Contract
      • How to Read Your Ontario Gas Meter
      • Ontario Electricity Support Program (OESP)
      • Save On Energy
      • Green Energy in Ontario
    • Ontario Retail Electricity & Natural Gas Companies
      • Just Energy
      • MyRate Energy
      • Planet Energy
      • RiteRate Energy
      • Summitt Energy
    • Ontario Regulated Price Plan Providers
      • Hydro One
      • Enbridge Gas Distribution
      • Union Gas
  • Saskatchewan
    • Regional Energy Services
      • Saskatoon Electricity Providers and Natural Gas Services
      • Regina Electricity Providers and Natural Gas Services
      • Prince Albert Electricity Providers and Natural Gas Services
    • Rates & Information
      • Breaking Down Your Saskatchewan Electricity and Natural Gas Bill
      • Explaining Your Saskatchewan Electricity & Natural Gas Rates
      • How to Read Your Saskatchewan Electricity and Natural Gas Meters
      • How to Start, Transfer, or Change Your Electricity and Natural Gas Services in Saskatchewan
      • Why the Saskatchewan Energy Market is Regulated
    • Saskatchewan Natural Gas Retailers
      • Future Now Energy
      • Just Energy
    • Commercial Natural Gas Retailers
      • Connect Energy
      • Hudson Energy
      • Peak Energy
    • Saskatchewan Regulated Energy Providers
      • Saskatoon Light & Power
      • SaskEnergy
      • SaskPower
      • Swift Current Electricity Services
    • Saskatchewan Commercial Energy Efficiency Programs
  • Québec
    • Service régional de l’énergie
      • Montréal
      • Ville de Québec
      • Sherbrooke
      • Gatineau
      • Laval
      • Coaticook
      • Westmount
      • Lévis
      • Saguenay
      • Baie-Comeau
      • Longueuil
      • Trois-Rivières
      • Magog
      • Alma
      • Saint-Jean-Baptiste
      • Joliette
      • Amos
    • Tarifs et information
      • Comprendre votre facture d’électricité et de gaz naturel au Québec
      • Comprendre les tarifs de gaz naturel et d’électricité au Québec
      • Comment débuter, transférer ou modifier vos services d’électricité et de gaz naturel au Québec ?
    • Fournisseurs de Gaz Naturel – Résidentiel
      • Just Energy Québec
    • Fournisseurs de Gaz Naturel – Commerciale
      • Just Energy Québec
      • Access Gas Québec
      • Summit Energy Québec
      • Hudson Energy Québec
      • Active Business Services
      • Direct Energy Québec
      • Comsatec Inc.
    • Fournisseurs d’électricité et gaz naturel – Réglementés
      • Énergir
      • Gazifère
      • Hydro-Québec
    • Programmes et rabais d’efficacité énergétique au Québec
  • Plans/Products
    • Plans
      • Fixed Rate Plans
      • Floating Rate Plans: Variable Electricity or Natural Gas Rates 
      • Regulated Rate Plans
      • Block Pricing Plans
      • Load Following Plans
    • Products
      • Residential Electricity and Natural Gas Plans
      • Small Business Electricity and Natural Gas Plans
      • Get multiple custom energy quotes for your Commercial Property
      • Get multiple custom energy quotes for your Large Commercial Property
      • Get multiple custom energy quotes for your Industrial Operations
      • Farming Electricity and Natural Gas Plans
  • Tips
    • Electricity Rates – Tips for Keeping Your Energy Costs Low
    • Natural Gas Rates – Tips for Lowering Your Bills
    • Frequently Asked Questions
    • ENERGYRATES.CA Website Disclaimer
  • Product Reviews
  • Green Energy
    • Green Energy Rates & Renewable Energy Solutions
    • Renewable Energy Certificates (RECs), Carbon Offsets & Green Building Certification
  • FR
    • EN

Why the Ontario Energy Market is Regulated

Cherchez-vous un tarif d’électricité ou de gaz naturel plus abordable? Trouvez-le avec le meilleur site Web de comparaison d’énergie au Canada.

Find a cheaper rate

Ontario’s energy market is not completely run by the government, nor is it a completely open market. The truth is that it’s a bit of both, with the Ontario government continuing to remain involved in the acquisition of much the area’s energy supply, while competitive companies are allowed to acquire and sell energy as well. While this might suggest that there’s a fairly equitable split between the number of residents who use regulated energy and those who purchase from retailers, in fact about 90% of Ontario consumers are served by regulated utility companies.

Regulated Electricity in Ontario

For much of the last century, Ontario Hydro (now Hydro One) was the generator and supplier of electricity for most of the province. During this time, 100% of the province’s residents and businesses paid rates that were controlled by the government. But beginning in the 1970s, it became increasingly apparent that the cost of repairing older generation stations, cost overruns for the construction of new systems, and subsided energy prices were creating insurmountable amounts of debt.

To address this issue, the Energy Competition Act was passed in 1998. The Act called for the restructuring of the electricity market, in order to allow private companies to participate. As required by the new law, Ontario Hydro was divided into five companies:

  • Hydro One, which handles electricity transmission.
  • Ontario Power Generation, which generates roughly half of the province’s electricity.
  • Independent Electricity Systems Operator (IESO), which is in charge of maintaining a balance between electricity supply and demand.
  • Electrical Safety Authority, which sets regulations to ensure the safety of those performing electrical work.
  • Ontario Electricity Financial Corporation, which manages Hydro One’s financial concerns.

Four years later, in 2002, the retail electricity market was deregulated, allowing consumers to take advantage of services offered by competitive companies. Later that year, a sharp increase in the cost of electricity prompted the suspension of the deregulation process. The process was resumed in 2005 with the introduction of the Regulated Price Plan, a predictable electricity plan featuring regulated rates for homeowners and businesses who wished to continue receiving electricity from their local utility.

More than a decade later, consumers continue to have access to a competitive energy market (though the transmission of electricity is still regulated). This has allowed for the introduction of a variety of plans which cater to specific consumer needs, as well as socially aware energy plans which use renewable energy sources.

Regulated Natural Gas in Ontario

Before 1985, the federal government of Canada regulated the purchase of natural gas. At the time, the government argued that regulation was necessary in order to maintain stockpiles of natural gas that would ensure the continued operation of the country in the case of an energy crisis.

During this time, TransCanada Pipelines had a de facto monopoly, as it was the sole owner and operator of every interprovincial gas pipeline in the country. As a consequence, gas distributors lacked the ability to determine their own rates for the gas they delivered to customers.

To combat this issue, in 1985 the federal government signed an agreement with the country’s three gas-producing provinces—Alberta, British Columbia, and Saskatchewan—which allowed for the deregulation of the nation’s natural gas market. TransCanada was compelled to spin off its sales services, and strictly function as an operator of the nation’s natural gas pipelines. In 1992, the retail natural gas market was made accessible to consumers, allowing homeowners and business owners the option of purchasing their gas from retailers, rather than their local utility company.

As is the case with electricity, the transmission of natural gas continues to be regulated. The Ontario Energy Board regulates the fees charged for natural gas distribution, transmission, and storage, and these fees are passed onto the consumer without markup. The OEB also regulates the natural gas rates charged by Ontario utilities, updating these rates four times a year, in January, April, July, and October. These rates are based upon the current market rate for natural gas, as well as projections of the future cost. To ensure that customers are not over- or undercharged when the market fails to align with expectations, the OEB also imposes the Gas Price Adjustment, which credits or debits consumers for any difference between expected and actual natural gas costs.

Electricity and natural gas deregulation in Ontario

The Ontario energy market is deregulated for both natural gas and electricity. In 1998, the Energy Competition Act was passed by Ontario to restructure the electricity market so that consumers would have a better choice in choosing a retailer for their energy needs.

More specifically, the electricity market was deregulated in 2002 initially, and once again in 2005 following a pause in order to keep price plans stable for consumers via a regulated price plan. While consumers can choose what retailer to buy their electricity from, the transmission of electricity is still regulated.

As for natural gas, the natural gas market has been deregulated in Ontario since 1985. The Ontario deregulated energy market allows consumers to be able to shop around for the best electricity and natural gas rates, since natural gas and electricity prices are decided by the retailers themselves. However, consumers are able to still obtain energy from their local utility if they prefer not to make a choice.

Sites like EnergyRates.ca can help you compare rates between Ontario utility companies, as well as learn more about the history of electricity and natural gas deregulation in Ontario.

Primary Sidebar

Ontario

  • Ontario
    • Regional Energy Services
      • Toronto Electricity Providers and Natural Gas Services
      • Ottawa Electricity Providers and Natural Gas Services
      • Mississauga Electricity Providers and Natural Gas Services
      • Brampton Electricity Providers and Natural Gas Services
      • Hamilton Electricity Providers and Natural Gas Services
      • London, Ontario Electricity Providers and Natural Gas Services
      • Markham Electricity Providers and Natural Gas Services
      • Kitchener Electricity Providers and Natural Gas Services
      • Windsor Ontario Electricity Providers and Natural Gas Services
      • Burlington Electricity Providers and Natural Gas Services
      • Sudbury Electricity Providers and Natural Gas Services
      • Oshawa Electricity Providers and Natural Gas Services
      • Barrie Electricity Providers and Natural Gas Services
      • Guelph Electricity Providers and Natural Gas Services
      • Oakville Electricity Providers and Natural Gas Services
    • Rates & Information
      • Why the Ontario Energy Market is Regulated
      • Explaining Your Ontario Electricity Rate
      • Explaining Your Ontario Natural Gas Rates
      • Breaking Down Your Ontario Electricity Bill
      • Breaking Down Your Ontario Natural Gas Bill
      • What is the Global Adjustment?
      • How to Set Up Your Utility Service When You Move in Ontario
      • Does Your Ontario Energy Provider Require a Security Deposit?
      • How to Renew Your Energy Contract
      • How to Start Natural Gas Service for the First Time
      • Canceling an Ontario Energy Contract
      • How to Read Your Ontario Gas Meter
      • Ontario Electricity Support Program (OESP)
      • Save On Energy
      • Green Energy in Ontario
    • Ontario Retail Electricity & Natural Gas Companies
      • Just Energy
      • MyRate Energy
      • Planet Energy
      • RiteRate Energy
      • Summitt Energy
    • Ontario Regulated Price Plan Providers
      • Hydro One
      • Enbridge Gas Distribution
      • Union Gas

Footer

EnmaxEpcorSponsor EnergyEncorDirect EnergyRite Rate
EasyMaxEncorSpot PowerHudson EnergySummitt EnergyEncor

Get Monthly Energy Insights!

Alberta fair competition statement:

Customers are free to purchase natural gas services or electricity services from a retailer of their choice. For a list of retailers, visit www.ucahelps.gov.ab.ca or call 310-4822 (toll free in Alberta).

review
  • EnergyRates.Ca College Scholarship 2026
  • Press Room
  • À propos de nous
  • Contact Us

Copyright © 2025 ENERGYRATES.CA

This website uses cookies and similar tracking technology for several purposes, including enhancing your experience when you visit our websites and personalizing ads/content available on our website. You can learn more about our use of these technologies in our Privacy Policy. By continuing to use this website, including clicking off or closing this banner, you consent to the use of these technologies by this website.AcceptPrivacy Policy