According to the 2011 census, there were 4,887,510 private households in Ontario.
Let’s say each home pays a $50 per month delivery charge on their electric bill. I’m using $50 as the base amount because people in condos probably don’t pay that much, while rural residents pay $75 and in many cases upwards of $100 per month. So let’s just use $50 as our starting point.
4,887,510 households x $50 = $244,375,500 EVERY MONTH.
That’s $244 MILLION just for delivery charges every single month. Hydro One describes the delivery charge as:
“Hydro One includes the cost of delivering electricity to customer’s properties on their bill under the Delivery Charge. A portion of the delivery charge is calculated at a fixed amount. The rest of the charges increase or decrease depending on the amount of electricity you use. For an average medium density residential customer who uses 750 kWh a month the Delivery Charge represent approximately 39% of the total bill. Hydro One owns and is responsible for this portion of the bill.”
What they fail to say is that rural residents pay far higher delivery charges than their urban counterparts, even though, in many cases, rural ratepayers live right next to where the electricity is produced, i.e. industrial wind turbines or the Bruce Nuclear Power plant. I would think that if you live right next door to say, Bruce Power, that your delivery charge would be practically nil.
So, they want us to believe that it costs the hydro companies 1/4 of a billion dollars to deliver our electricity to us every month, in many cases through lines that have been installed for decades.
Now, let’s take the Global Adjustment fee. For an explanation of what that is, click here….
The electricity bill that we used as an example had a charge of $106.54. Let’s assume that the Global Adjustment fee is spread out evenly throughout the province to all ratepayers. And we know it varies each month.
4,887,510 x $106.54 = $520,715,315.40 for one month.
That’s $520 M plus $244 M totals 3/4 of a BILLION dollars every single month JUST for those two charges. That doesn’t even include the actual cost of the electricity or the other charges (i.e. regulatory charge) and taxes.
Is there an energy expert out there who can explain to us exactly what the 1/4 of a billion dollars for delivery charges every month is used for? (Besides the exorbitant salaries of the CEO’s and other staff who are on the Sunshine List.)