How Electricity is
Generated in Ontario

Electricity produced from renewable and nuclear sources is considered primary energy because it is captured directly from natural resources, while electricity based on fossil fuels is considered secondary energy because it is produced from primary energy commodities such as coal, natural gas and oil.

Electricity Rates in Ontario

Electricity prices differ across Canada due to a number of factors; in Ontario, the electricity market is partially restructured. Most consumers pay rates based on the seasonal cost of electricity. Changes in prices generally reflect variations in electricity demand, availability of generation sources, fuel costs, and power plant availability.

With electricity rates for Ontario small businesses increasing across the province, the majority of Canadian consumers are looking for ways to lower their energy bills. For mid-size and large operations, implementing a cost effective energy plan can help businesses potentially save money on Ontario electricity rates.

Reducing Consumption and Cutting Costs

Ontario businesses can implement a few of these cost-saving strategies to keep their wholesale energy bills as low as possible without
sacrificing operations.


Commodity prices for Ontario electricity rates changes throughout the day, week and season, providing businesses an opportunity to adjust their energy use to take advantage of lower prices. Shifting operations to cheaper times of the day, or running operations overnight will help to reduce your business’ energy costs.


Improving energy efficiency can lead to streamlined operations, lower electricity bills, less maintenance and increased profits. Outdated or insufficient equipment can lead to energy waste. Purchasing new, more energy efficient office equipment or machinery is especially effective at reducing energy waste.


Switching to energy-efficient lighting such as LED bulbs are a simple way for Ontario businesses to manage electricity rates. Typically, LED bulbs will also reduce maintenance requirements due to their longer life spans. With energy-efficient lights, most buildings will be able to reduce the number of fixtures required to further
reduce energy usage.


If possible, using commercial renewable energy sources, such as solar and wind, to power some or all of your business can help lower your Ontario businesses’ electricity rates over time. Doing so also generates power that’s free of harmful CO2 emissions and other greenhouse gases.