Energy Market Participation
Energy Market Participation
Lakeland Solutions has the expertise to assist interested parties through the process of market registration and efficient strategies to maximize benefits.
Energy Markets In Ontario
For much of the last century, Ontario Hydro (now Hydro One) was the generator and supplier of electricity for most of the province. During this time, 100% of the province’s residents and businesses paid rates that were controlled by the government. But beginning in the 1970s, it became increasingly apparent that the cost of repairing older generation stations, cost overruns for the construction of new systems, and subsided energy prices were creating insurmountable amounts of debt.
The Energy Competition Act
To address this issue, the Energy Competition Act was passed in 1998. The Act called for the restructuring of the electricity market in order to allow private companies to participate. As required by the new law, Ontario Hydro was divided into five companies:
- Hydro One Networks, which handles electricity transmission.
- Ontario Power Generation, which generates roughly half of the province’s electricity.
- Independent Electricity Systems Operator (IESO), which is in charge of maintaining a balance between electricity supply and demand.
- Electrical Safety Authority, which sets regulations to ensure the safety of those performing electrical work.
- Ontario Electricity Financial Corporation, which manages Hydro One’s financial concerns.
Four years later, in 2002, the retail electricity market was deregulated, allowing consumers to take advantage of services offered by competitive companies. Later that year, a sharp increase in the cost of electricity prompted the suspension of the deregulation process. The process was resumed in 2005 with the introduction of the Regulated Price Plan, a predictable electricity plan featuring regulated rates for homeowners and businesses who wished to continue receiving electricity from their local utility. More than a decade later, consumers continue to have access to a competitive energy market (though the transmission of electricity is still regulated).
This change has provided unique opportunities for smaller electricity consumers/generators to become active participants rather than passive users. Through participation in the IESO energy markets, commercial and industrial consumers can curtail their consumptions upon IESO instructions and reduce their bills considerably.
Want to learn more?
If you are interested in learning more about our company and how you can become involved in our innovative projects, please reach out to a member of our team.