Commercial Electricity Rates

Market Commercial Electricity Rates

We charge customers for the cost of electricity and collect payment on behalf of the organizations that work together to ensure the safe and reliable operation of Ontario’s electricity system. The charges on your bill fall under four categories: electricity costs, delivery costs, regulatory and taxes.

Electricity Costs

How much electricity you use determines the rate you pay. Residential consumers and small businesses, for the most part, pay for electricity via time-of-use (TOU), Tiered or Ultra-Low Overnight (ULO) rates, which include the Global Adjustment charge. Larger commercial customers usually pay the Ontario Electricity Market Price (or the Ontario Market Price), plus the Global Adjustment.

Ontario Electricity Market Price

The Ontario Market Price is determined by the Independent Electricity System Operator (IESO) and fluctuates based on supply and demand. To calculate the Ontario Market Price, the IESO establishes a base price that reflects the cost of supplying electricity. That base price is adjusted depending on the transmission system’s ability to deliver electricity throughout the province. Learn more about the Ontario Market Price.

Global Adjustment

Global Adjustment is collected on behalf of the Independent Electricity System Operator (IESO) and covers the cost for providing both adequate generating capacity and conservation programs for Ontario. It applies to business customers who pay the Ontario Market Price and customers who have signed a contract with a licensed electricity retailer.  Find out more about the Global Adjustment

Delivery Charge

The delivery charge covers the costs of delivering electricity from generating stations across Ontario to Burlington Hydro and then to your business. It includes the costs to build and maintain distribution lines, towers and poles, and to operate the local electricity system. The delivery charge also includes Hydro One transmission costs and system losses.

Before Burlington Hydro can make any changes to its rates it is required to seek approval from the OEB through a rate application process. The OEB reviews Burlington Hydro’s rate application independently in a public process and approves the rates Burlington Hydro can charge. BHI’s current rates: Burlington Hydro - Distribution Rates and Charges