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The Ontario Energy Board is the provincial regulator of natural gas [1] and electricity utilities in Ontario, Canada. [2] This includes setting rates, and licensing all participants in the electricity sector including the Independent Electricity System Operator (IESO), generators, transmitters, distributors, wholesalers and electricity retailers, as well as natural gas marketers who sell to low volume customers.
To ensure an adequate level of consumer protection in the energy markets, the Board developed codes of conduct for gas marketers and electricity retailers, and established a complaint resolution process for energy consumers. The Board also provides a broad range of information to energy consumers about electricity and natural gas in Ontario.
The Board oversees the electricity market and ensures regulated gas and electricity monopoly utilities comply with Board decisions and orders. This includes conducting audits, performing compliance monitoring activities and monitoring various aspects of the gas and electricity utilities’ financial operating performance.
In the electricity sector, the Board sets transmission and distribution rates, and approves the IESO's budget and fees. The Board also sets the regulated price of electricity for residential and small business consumers on the Regulated Price Plan. Consumers who have signed contracts with an electricity retailer will pay the price set out in their contract. The Board licenses all electricity retailers who sell electricity to residential and small commercial consumers.
Prior approval by the Board is required for:
The Board also monitors markets in the electricity sector and reports to the Minister of Energy and Infrastructure on the efficiency, fairness, transparency and competitiveness of the markets, and reports any abuse or potential abuse of market power. The Board may also be asked to review the IESO market rules and consider appeals of IESO orders.
In the natural gas sector, utilities are required to submit the rates they propose to charge their customers to the Board for review. The Board approves rates associated with the cost to transport, store and distribute natural gas from utilities to consumers as well as charges to administer natural gas accounts. The Board also approves the price utilities can charge consumers for the natural gas they use. Natural gas utilities do not make a profit on the sale of natural gas. It is sold to consumers with no mark-up. Consumers who have signed contracts with a natural gas marketer will pay the price set out in their contract.
The Board licenses all natural gas marketers who sell natural gas to residential and small commercial consumers.
The Board is required to determine if constructing a natural gas pipeline is in the public interest by considering need, safety, economic feasibility, community benefits, security of supply and environmental impacts. Each municipality may grant a gas utility the right to deliver gas service and use road allowances or utility easements within its borders. The specific terms and conditions of these franchise agreements between the municipality and the utility are subject to Board approval.
The Board also reviews applications by gas distributors to create and operate underground gas storage areas and designates geological formations suitable to store natural gas in Ontario. Board approval is also required before a natural gas utility can sell its distribution system or amalgamate with another distributor.
There are currently two default service providers of natural gas in Ontario, Enbridge and Union Gas. These two entities are regulated by the Board. The Board does not regulate competitive services in the natural gas sector. These include the sale of natural gas, water heater rentals and repair or maintenance services. These products and services are competitive services and can be obtained from various companies.
A public utility company is an organization that maintains the infrastructure for a public service. Public utilities are subject to forms of public control and regulation ranging from local community-based groups to statewide government monopolies.
The New Zealand electricity market (NZEM) is a decentralised electricity market regulated by the Electricity Industry Participation Code administered by the Electricity Authority (EA). The authority was established in November 2010 to replace the Electricity Commission.
An electricity market is a system that enables the exchange of electrical energy, through an electrical grid. Historically, electricity has been primarily sold by companies that operate electric generators, and purchased by consumers or electricity retailers.
The electric power industry covers the generation, transmission, distribution and sale of electric power to the general public and industry. The commercial distribution of electric power started in 1882 when electricity was produced for electric lighting. In the 1880s and 1890s, growing economic and safety concerns lead to the regulation of the industry. What was once an expensive novelty limited to the most densely populated areas, reliable and economical electric power has become an essential aspect for normal operation of all elements of developed economies.
The Independent Electricity System Operator (IESO) is the Crown corporation responsible for operating the electricity market and directing the operation of the bulk electrical system in the province of Ontario, Canada. It is one of seven independent system operators in North America.
Hydro One Limited is an electricity transmission and distribution utility serving the Canadian province of Ontario. Hydro One traces its history to the early 20th century and the establishment of the Hydro-Electric Power Commission of Ontario. In October 1998, the provincial legislature passed the Energy Competition Act which restructured Ontario Hydro into separate entities responsible for electrical generation, transmission/delivery, and price management with a final goal of total privatization.
The electricity sector in Canada has played a significant role in the economic and political life of the country since the late 19th century. The sector is organized along provincial and territorial lines. In a majority of provinces, large government-owned integrated public utilities play a leading role in the generation, transmission, and distribution of electricity. Ontario and Alberta have created electricity markets in the last decade to increase investment and competition in this sector of the economy.
Direct Energy LP is a North American retailer of energy and energy services. The company was founded in Toronto in 1986 and now has more than four million customers in Canada and the United States. Direct Energy is a subsidiary of NRG Energy.
A regional transmission organization (RTO) in the United States is an electric power transmission system operator (TSO) that coordinates, controls, and monitors a multi-state electric grid. The transfer of electricity between states is considered interstate commerce, and electric grids spanning multiple states are therefore regulated by the Federal Energy Regulatory Commission (FERC). The voluntary creation of RTOs was initiated by FERC in December 1999. The purpose of the RTO is to promote economic efficiency, reliability, and non-discriminatory practices while reducing government oversight.
Electricity provider switching is the ability of power consumers to have an option to choose their electricity provider in a deregulated electricity market as permitted by a state public utilities governing body.
Enmax Corporation is a vertically-integrated utility with operations across Alberta, Canada, and in Maine, US.
The Texas electricity market is deregulated, meaning that there is competition in the generation and distribution of electricity. Power generators in the Texas Interconnection, managed by the Electric Reliability Council of Texas, participate in an energy-only electricity market and are compensated only for the electricity they produce. The wholesale generation market was deregulated in 1995 and the distribution market in 1999, with Texas Senate Bill 7. This replaced the prior system in which power was generated and consumed locally by the same utility with one in which retail providers contracted with generators across the state.
Just Energy Group Inc. is a Canadian-based natural gas and electricity retailer operating in Canadian and American markets across North America.
The electricity policy of Ontario refers to plans, legislation, incentives, guidelines, and policy processes put in place by the Government of the Province of Ontario, Canada, to address issues of electricity production, distribution, and consumption. Policymaking in the electricity sector involves economic, social, and environmental considerations. Ontario's electricity supply outlook is projected to deteriorate in the near future due to increasing demand, aging electricity supply infrastructure, and political commitments, particularly the phase-out of coal-fired generation. Policymakers are presented with a range of policy choices in addressing the situation, both in terms of overall system design and structure, and specific electricity generating technologies.
Brazil has the largest electricity sector in Latin America. Its capacity at the end of 2021 was 181,532 MW. The installed capacity grew from 11,000 MW in 1970 with an average yearly growth of 5.8% per year. Brazil has the largest capacity for water storage in the world, being dependent on hydroelectricity generation capacity, which meets over 60% of its electricity demand. The national grid runs at 60 Hz and is powered 83% from renewable sources. This dependence on hydropower makes Brazil vulnerable to power supply shortages in drought years, as was demonstrated by the 2001–2002 energy crisis.
The electricity policy of Alberta, enacted through several agencies, is to create an electricity sector with a competitive market that attracts investors, while providing consumers with reliable and affordable electricity, as well as reducing harmful pollution to protect the environment and the health of Albertans, according to their 2022 website.
The Alberta Electric System Operator (AESO) is the non-profit organization responsible for operating Alberta, Canada's power grid. AESO oversees the planning and operation of the Alberta Interconnected Electric System (AIES) in a "safe, reliable, and economical" manner. It is mandated by provincial legislation to act in the public interest and cannot own any transmission, distribution or generation assets.
The electricity sector in the Philippines provides electricity through power generation, transmission, and distribution to many parts of the country. The Philippines is divided into three electrical grids, one each for Luzon, the Visayas and Mindanao. As of June 2016, the total installed capacity in the Philippines was 20,055 megawatts (MW), of which 14,348 MW was on the Luzon grid. As of June, 2016, the all-time peak demand on Luzon was 9,726 MW at 2:00 P.M. on May 2, 2016; on Visayas was 1,878 MW at 2:00 P.M. on May 11, 2016; and on Mindanao was 1,593 MW at 1:35 P.M. on June 8, 2016. However, about 12% of Filipinos have no access to electricity. The Philippines is also one of the countries in the world that has a fully functioning electricity market since 2006 called the Philippine Wholesale Electricity Spot Market(WESM) and is operated by an independent market operator.