Where do your Hydro and Water dollars go?

The chart shown below explains the various charges on your hydro/water bill and to whom the money is paid.

The average Oakville Hydro residential customer uses 2,000 kWh of electricity and 62 cubic meters of water every two months:

Commodity Charge: This is the cost of the electricity you've used during the billing period. If you purchase your electricity from an electricity retailer, this will be the rate charged by your retailer. If not, your commodity rate will be the same price that Oakville Hydro pays, averaged over your billing period. The electricity charge is paid to your retailer or the Independent Electricity Market Operator (IMO), who in turn disburses payments to the appropriate generators (e.g. Ontario Power Generation).

Non-Competitive Energy Charges: These are the charges for operating the electricity market in Ontario. Oakville Hydro sends this amount directly to the Independent Electricity Market Operator (IMO), a provincially owned institution set up to manage the electricity market in Ontario.

Debt Retirement Charge (DRC): This is your contribution towards paying off the $21 billion stranded debt left by the former Ontario Hydro. Oakville Hydro sends this amount directly to the Provincial Government.

Transmission Connection Charge and Transmission Network Charge: These are the costs of connecting to and operating the electricity supply grid that delivers electricity to Oakville Hydro's boundaries. Oakville Hydro sends this amount directly to the Independent Electricity Market Operator and Hydro One.

Distribution Charges: These are Oakville Hydro's charges to all customers for the use of its distribution system. The distribution system is essentially the wires that connect the electricity supply grid to your home. These charges are strictly regulated by the Ontario Energy Board (OEB). On your bill, this charge is split into a fixed charge and a variable charge that changes according to your electricity use.

Other/Administration Charge: This small fixed amount is charged to cover the cost of Oakville Hydro's administration for customers who have not signed with an electricity retailer. This charge is set by the Ontario Energy Board.

NOTE - Oakville Hydro is required to collect GST for the Federal government on each of these line items.

Water and Sewer Charges: Oakville Hydro reads your water meter and bills you on behalf of the Region of Halton for water used and for sewer service. The Region of Halton establishes water and sewer rates.

NOTE - GST is not collected on water and sewer charges.