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Ontario operates one of the most complex and structured utility markets in Canada. According to the Canada Energy Regulator, Ontario and Alberta stand as the only jurisdictions in Canada with competitive generation and retail markets for electricity. That distinction shapes everything from how power reaches your home to how much you pay each month.
The scale of this sector is enormous. Job Bank data shows Ontario's utilities industry produced over $14.7 billion in GDP in 2023, contributing 1.7% to the province's total GDP - a $292.6 million increase from 2022. The sector employed 63,200 people that year, comprising 0.8% of Ontario's total workforce.
Whether you're a first-time renter in Ontario, a homeowner, or a newcomer navigating Canadian systems for the first time, understanding utility companies Ontario residents rely on will save you time, confusion, and money. This guide walks you through every major provider, explains how billing works, and shows you practical ways to reduce costs - including earning cashback on utility bill payments through Neobanc.
The Independent Electricity System Operator (IESO) sits at the heart of Ontario's electricity system. The IESO manages Ontario's power system by balancing supply and demand and directing the flow of electricity across high-voltage transmission lines. It also operates the province's electricity market and publishes the Ontario electricity Market Price (OEMP), which combines the Day-Ahead Ontario Zonal Price and the Load Forecast Deviation Adjustment, as detailed on the IESO Power Data portal.
Ontario's electricity system operates across three distinct tiers:
Ontario generated 148.3 TWh of electricity in 2021, representing 24% of Canada's total generation. That output makes Ontario the second-largest electricity producer in the country after Quebec, with an estimated generating capacity of 39,569 MW. If you're preparing for a move and want to make sure every utility detail is covered, our moving checklist for Ontario includes a step-by-step utility setup section.
Ontario Power Generation holds the position of the largest utility in Ontario's competitive electricity market, with over 18,230 MW of capacity. OPG operates a diverse fleet of generating stations across the province, including nuclear, hydroelectric, thermal, and renewable energy facilities. The company functions as a government business enterprise, and in 2025-26, its performance directly contributed to provincial finances. Ontario's third quarter report reveals that net income from government business enterprises increased by $399 million, driven mainly by OPG's higher net income forecast reflecting stronger realized gains in Ontario nuclear funds.
OPG's Darlington Nuclear Generating Station refurbishment represents one of Canada's largest clean energy infrastructure projects. Job Bank reports that OPG started refurbishment work on four reactors at Darlington in October 2016, with the $12.8 billion project expected to reach completion by 2026 and support operations at the site until 2055.
Hydro One owns and operates almost all of Ontario's transmission capacity, maintaining about 30,000 km of transmission lines. The company serves nearly 1.5 million predominantly rural customers - roughly 26% of total customers in the province. If you live outside a major city in Ontario, Hydro One is very likely your local distributor as well as the company transmitting power across the province.
Beyond the major players, dozens of local distribution companies serve specific municipalities and regions. Here are the most prominent:
Major Ontario Electricity Providers at a Glance
| Provider | Role | Service Area | Approximate Customers |
|---|---|---|---|
| Hydro One | Transmission & Distribution | Rural & suburban ON | ~1,400,000 |
| Toronto Hydro | Local Distribution | City of Toronto | ~790,000 |
| Alectra Utilities | Local Distribution | GTA & Hamilton | ~1,060,000 |
| Ottawa Hydro (Hydro Ottawa) | Local Distribution | City of Ottawa | ~350,000 |
| IESO | Market & System Operator | Province-wide | N/A |
Your specific LDC depends entirely on your municipality. When completing a rental application, ask the landlord or property manager which utility companies serve the address so you can set up accounts before move-in day.
Unlike Ontario's fragmented electricity distribution , natural gas distribution is far more consolidated. Enbridge Gas (formerly Union Gas and Enbridge Gas Distribution, which merged in 2019) serves approximately 3.9 million customers across the province - covering the vast majority of Ontario's natural gas distribution market. Whether you live in downtown Toronto or a rural community near Sudbury, Enbridge Gas is almost certainly your gas distributor.
Natural gas heats about 75% of Ontario homes, making it a critical utility for most residents. Your gas bill typically includes several components:
Ontario does allow competitive natural gas retailing, meaning third-party companies can sell you the gas supply portion of your bill at a fixed or variable rate, while Enbridge still handles delivery. Popular gas retailers include Simply Energy and Just Energy. However, the Ontario Energy Board's default system supply rate often proves competitive, so research carefully before signing a contract with a retailer. Newcomers renting for the first time should understand their tenant rights in Ontario, including which utility costs a landlord covers versus what tenants pay directly.
Water and wastewater services in Ontario operate differently from electricity and gas. Municipalities manage water treatment, distribution, and sewage processing directly. You won't find a province-wide water company - instead, your city or regional government handles everything.
Major municipal water providers include:
Most Ontario municipalities bill for water based on metered consumption, measured in cubic metres. Your water bill typically bundles water supply and wastewater treatment into a single charge. Some municipalities bill bimonthly, while others bill monthly or quarterly. Average water costs in Ontario range from roughly $60 to $120 per month for a typical household, depending on the municipality and usage.
For renters, water is often included in the rent - especially in apartment buildings. However, some newer developments and single-family rental homes require tenants to pay water directly. Understanding these details before signing a lease matters. If you're concerned about rising living costs, learn how rent control in Ontario protects against unexpected increases.
Ontario residents can choose between two electricity pricing structures for the commodity portion of their bill:
Time-of-Use (TOU) pricing charges different rates depending on when you use electricity. Rates are divided into on-peak, mid-peak, and off-peak periods. Running your dishwasher at 2 a.m. costs significantly less than running it at 5 p.m. TOU pricing rewards flexibility.
Tiered pricing charges a lower rate for a set amount of electricity each month (the first tier) and a higher rate once you exceed that threshold. This structure works well for households with consistent, predictable energy usage.
Most residential customers default to TOU pricing unless they opt into tiered pricing through their LDC. The 2026 rent increase guideline of 2.1% already squeezes budgets - choosing the right pricing plan can help you claw back some savings on the electricity side.
An Ontario electricity bill contains five main components:
IESO data shows that in December 2025, Ontario's weighted average electricity price (OEMP) reached $100.04 per MWh, calculated from a Day-Ahead Ontario Zonal Price of $99.33/MWh and an LFDA of $0.71/MWh. The Global Adjustment rates fluctuated significantly throughout 2025, ranging from -$2.57/MWh in December to $14.37/MWh in May.
Projected Per-Unit Electricity Costs in Ontario (2024 Dollars)
| Year | Cost per MWh | Trend |
|---|---|---|
| 2025 | $100.04/MWh | Baseline |
| 2030 | $108.00/MWh | Rising |
| 2040 | $120.00/MWh | Rising |
| 2050 | $130.00/MWh | Rising |
The IESO's 2025 Annual Planning Outlook projects the per-unit cost of electricity starting at $170 per MWh in 2025, dipping to $155 per MWh by 2039, before climbing to $177 per MWh by 2050. Planning for these long-term cost trends matters, especially for homeowners budgeting decades ahead.
Ontario's electricity needs are expanding rapidly. The IESO forecasts that provincial electricity demand will grow 75% by 2050, with annual consumption rising from 151 TWh in 2025 to 262 TWh in 2050. Electrification of transportation, industrial processes, and heating systems drives much of this growth.
This surge places significant pressure on utility companies Ontario depends on. It means new generation capacity, expanded transmission infrastructure, and smarter grid management will all require massive investment over the coming decades.
Demand-side management provides a critical buffer. Energy efficiency savings in Ontario have grown from approximately 13 TWh in 2015 to as much as 27 TWh in 2024. IESO projections indicate annual electricity savings via efficiency programs and regulations could reach 35 TWh annually by 2050. These programs include rebates for insulation upgrades, smart thermostats, and high-efficiency appliances - all worth investigating if you want to lower your monthly bills.
Despite the sector's long-term growth trajectory, short-term employment fluctuations do occur. The Financial Accountability Office of Ontario reports that in the third quarter of 2025, employment in Ontario's utilities sector declined by 4,600 jobs, making it one of the industries with the largest employment losses during that period. Ontario still represents 40.8% of all Canadian employment in utilities - slightly higher than its 39.2% share of Canada's total employment.
Neobanc gives Canadians 1% cashback on bill payments — turning those monthly utility costs into real rewards.
Start EarningSetting up utility accounts before your move-in date prevents gaps in service. Here's a step-by-step approach:
Our Ontario moving checklist covers these steps alongside dozens of other tasks you'll need to handle during a move.
Utility companies may request a security deposit if you have limited credit history or a history of missed payments. This deposit typically equals one to two months of estimated usage. Maintaining a strong credit score helps you avoid these deposits entirely. If you're building credit as a newcomer, consistent on-time bill payments contribute positively to your credit profile over time.
If you're on Time-of-Use pricing, shifting high-consumption activities to off-peak hours produces immediate savings. Run your laundry, dishwasher, and electric vehicle charger during evenings and weekends. Even modest shifts can reduce your electricity portion by 10-20%.
Ontario offers several programs that directly reduce utility bills:
Beyond cutting consumption, you can earn money back on the utility bills you're already paying. Neobanc offers cashback on bill payments, including electricity, gas, and other recurring expenses. Instead of treating utility bills as pure expenses, you turn every payment into a small reward. Over 12 months, cashback on utilities, rent, and even mortgage payments adds up meaningfully. Use the cashback calculator to see exactly how much you could earn based on your monthly spending.
How you pay your bills also impacts your finances. Some methods offer more flexibility and rewards than others.
Utility Bill Payment Methods Compared
| Method | Convenience | Rewards Potential | Credit Building |
|---|---|---|---|
| Pre-authorized debit | High | None | No impact |
| Credit card | High | High (1-4%) | Builds history |
| Online banking | High | None | No impact |
| In-person payment | Low | None | No impact |
| Cheque by mail | Low | None | No impact |
Whether you pay in cash, use pre-authorized debit, or pay through a rewards platform, picking the right method can save you hundreds annually across all your recurring payments.
Utility arrangements vary widely depending on your rental type. In many apartment buildings, landlords include water and sometimes heat in the monthly rent. In townhouses and single-family rental homes, tenants typically pay all utilities directly.
Always confirm utility responsibilities before signing a lease. Your lease should explicitly state which utilities the landlord covers and which you handle. If a landlord raises rent partially to cover utility increases, the total increase must still fall within the annual rent increase guideline.
When moving from one Ontario rental to another, notify each utility provider at least two weeks before your move-out date. Provide a final meter reading if possible. Then set up new accounts at your destination address. Failing to close old accounts can leave you responsible for the next occupant's usage until the account formally transfers or closes.
For detailed guidance on how landlords handle payments and what rights you hold during transitions, our tenant resources cover every scenario you might encounter.
You cannot choose your local distribution company - your LDC is determined by your address. However, you can choose between electricity retailers who offer fixed-price contracts versus the regulated rate set by the Ontario Energy Board. Most residential customers stay on the regulated rate.
Late payments result in interest charges, typically around 1.5% per month. After a prolonged period of non-payment (usually 60+ days), your utility provider may issue a disconnection notice. The Ontario Energy Board requires providers to follow a specific process before disconnecting service, including offering payment plans. If you're struggling, contact your provider or apply for LEAP assistance immediately.
Yes. Delivery charges vary by LDC, and some northern or rural utilities charge higher delivery rates due to lower customer density and longer distribution lines. Gas costs also vary regionally based on pipeline infrastructure. Water rates differ by municipality. Before moving to a new area, check the local LDC's rate schedule to estimate your costs. Our average rent across Canada guide helps contextualize overall housing costs by region.
Most LDCs will require a security deposit if you lack Canadian credit history. This deposit is refundable after 12-24 months of consistent on-time payments. Bring government-issued ID and proof of your new address (such as a signed lease). Building Canadian credit early - through consistent utility and rent payments - helps you avoid deposits on future accounts.
Navigating utility companies Ontario residents depend on doesn't have to feel overwhelming. The system breaks down into clear tiers - generation, transmission, and distribution - with specific providers handling each stage. Electricity, natural gas, and water each follow their own billing structures, but once you understand the basics, managing accounts becomes straightforward.
Start by identifying your local providers, choosing the pricing structure that matches your lifestyle, and taking advantage of available rebate programs. Then go a step further: instead of simply paying your bills each month, earn cashback on every utility payment through Neobanc's bill payment platform. Combined with cashback on gift cards and rent, you can turn your largest recurring expenses into consistent rewards.
For more practical tips on managing your finances as an Ontario resident, explore our finance and renting blog or check out the Neobanc FAQ to see how our platform works.
You just learned how Ontario's utility market works. Now make it work for you — earn cashback on every bill with Neobanc.
Earn Cashback NowOntario's utility landscape includes Ontario Power Generation (OPG), the largest generator with over 18,230 MW of capacity [6]; Hydro One, which operates 30,000 km of transmission lines serving 1.5 million customers [6]; and numerous local distribution companies like Toronto Hydro, Alectra Utilities, and Ottawa Hydro. For natural gas, Enbridge Gas is the primary provider. Water services are managed by individual municipalities. Your specific providers depend on your location within the province.
Ontario renters typically pay $150–$350/month for hydro, gas, and internet combined. Electricity alone ranges from $50–$150/month depending on unit size and usage. In December 2025, the weighted average electricity market price was $100.04/MWh [5], and the per-unit cost is projected to reach $177/MWh by 2050 [3]. You can reduce costs by using energy during off-peak hours and enrolling in conservation programs. Paying bills through Neobanc also earns up to 1% cashback.
Contact your local electricity distributor (Toronto Hydro, Hydro One, Alectra, etc.) to open an account at your new address. For natural gas, reach out to Enbridge. Check with your municipality about water service — it may be included in your rent. Have your move-in date, address, and ID ready. For a complete walkthrough, see Neobanc's [moving checklist for Ontario](https://www.neobanc.com/articles/moving-checklist-ontario).
Yes. Ontario and Alberta are the only Canadian jurisdictions with competitive retail electricity markets [6]. You can choose between your local utility's regulated rate or contract with a retail electricity provider. Compare Time-of-Use and Tiered pricing plans — your choice can significantly affect your bill. The Ontario Energy Board regulates rates to protect consumers regardless of which provider you select.
The IESO forecasts Ontario's electricity demand will grow 75% by 2050, from 151 TWh in 2025 to 262 TWh [3]. This is driven by electrification of transportation, industrial growth, and population increases. To meet this demand, Ontario is investing in nuclear refurbishment — including the $12.8 billion Darlington project and $13.0 billion Bruce Power project [4] — alongside expanded renewable energy and storage infrastructure.
Neobanc lets you earn up to 1% cashback on utility bill payments, including electricity, gas, and internet. Simply set up your utility accounts as payees in the Neobanc app and make payments as you normally would. The cashback is automatic and adds up over time. Neobanc also offers up to 9% cashback on rent and 0.5% on mortgage payments, making it a comprehensive savings tool for all your essential bills.
It depends on your lease. Some Ontario landlords include electricity, heat, and water in the monthly rent, while others require tenants to set up and pay for utilities separately. Always confirm which utilities are included before signing a lease. If not included, budget an additional $150–$350/month. Under Ontario's Residential Tenancies Act, landlords are generally responsible for ensuring vital services are maintained regardless of billing arrangement.
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