Fixed rate retailers are again knocking at your door
Know your electricity retail options

If an electricity retailer knocks at your door it's important to know your options, and ask for identification. Our local hydro utility, Enersource Hydro Mississauga, does not normally send representatives visiting from door to door inquiring about home electricity bills. Unless you are confident in the person's identity you are wise not to present your electricity bill to a door-to-door solicitor. There have been instances where disreputable firms have made inappropriate use of obtained account and personal information.

You should also know that contract prices offered by retailers are not in competition with Enersource Hydro Mississauga. Local utilities do not profit from the "Energy" portion of the electricity bill, typically about half the bill where this choice comes into play.

Enersource simply passes on "Energy" costs following a Regulated Rate Plan established by the Ontario Energy Board. As of January 2006, that regulated price, is 5.0 cents for the first 1,000 kWh and 5.8 cents for the balance of electricity used beyond that amount each month. On the other hand, retail offers are typically above that of the Regulated Price Plan, as a hedge against expectations that prices may rise.

An impartial website EnergyShop compares retail electricity prices. At present, those prices are in the 8 to 10 cent per kWh range. There's no simple answer as to what the right option may be for you, but consider your decision wisely and do not feel compelled to choose a retail contract if you are not comfortable with that choice.

To learn more you may wish to visit the Enersource web site. The Ontario Energy Board (OEB) is also a good place to visit. It oversees the business behaviour of electricity market participants, and sets regulated electricity prices. You will contact the Ontario Energy Board using its toll-free number 1-877-632-2727. As well, download the attached OEB newsletter that deals with electricity retailers.

Tips to remember

• Neither the Government of Ontario, nor any political party sets electricity rates;
• The government will not (indeed, cannot) cut off your electricity. Only your distributor can do that;
• Electricity retailers offering fixed rate contracts make money by selling you electricity at a fixed rate that is higher than the current OEB regulated rate;
• Neither the Government of Ontario, nor Enersource Hydro Mississauga send solicitors door-to-door, and you should not show your electricity bill to someone you don't know.