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Market Opening and You
On May 1st, 2002 the market for electricity in the province of Ontario was opened to competition. Market Opening - May 1st marked a monumental day in the history of hydro, across all of Ontario.
WE DELIVER... As your local hydro we are focused on this new role.
What Does it Mean to YOU?
Cambridge and North Dumfries Hydro Inc. has been serving the community since 1906. We will continue to deliver your power to you.
Why Change?
At first glance customers questioned why fix it, if it wasn't broken?
By all appearances the electrical industry across the province appeared to be functioning. What most residents in Ontario did not know was that the former Ontario Hydro had become outdated, inefficient and technically challenged. Changes needed to be made. The old Ontario Hydro monopoly was broken up into a number of companies with individual core businesses. Residents of the province were left with a debt of $19 billion dollars that together we will pay down over the next ten to fifteen years. The good news is that unlike the old monopoly, any new debt these companies incur will no longer be government guaranteed.
On a larger scale, a competitive electrical industry will enable Ontario to participate as a player in the North American market.
What Happens to the Utility?
The introduction of competition meant sweeping changes to the way we do business. Today, in the changed business environment we are considered a local distribution company.
Simply stated, "we deliver", that is our new role and business focus. In the new environment, the Ontario Energy Board regulates Cambridge and North Dumfries Hydro Inc. The regulations state the utility must continue to procure energy for those customers that decide not to sign a contract with a retailer - and the utility is obliged to pass through the costs of the power to the customer without profit or mark up.
What are the Choices for Commodity Purchases?
Customers have two choices for buying electricity or commodity.
You may choose to do nothing. As your local utility, we will continue to procure energy for you from the marketplace. You will pay what the utility pays for the energy. Right now the government has set the price for commodity for residential, low volume and designated customers at a fixed commodity price. Sometime in the future that may change and truly become competitive again. This would mean customers large and small would pay the daily market price for commodity. Right now since Market Opening - the provincial government has set in and has on a temporary basis, set a fixed price for commodity for the residential, low volume and designated customers. Commercial and industrial customers continue to pay for commodity based on the daily "spot" market price.
As an alternative a customer can choose to sign a fixed contract with a Retailer. This option means a customer pays a fixed price for their energy.
For some, a contract may be the way to go because it provides price stability.
One point to consider in opting to go with a Retailer is this. Everyone who buys electricity could be eligible for a rebate sometime down the road, depending upon the cost of energy. Some Retailer contracts allow the Retailer to keep the rebate.
In summary you need do nothing now. You can always decide to change at a later date, after the open market has settled in.
There can be benefits to either choice you make. It very much depends on your situation.
No matter what your choice - for buying your energy, you are still a customer of the utility. You may be a "shared customer" but Cambridge and North Dumfries Hydro Inc. will always deliver. To begin, customers will receive only one bill from the utility. We will bill the energy on behalf of the Retailer.
Unbundling of the Customer Bill
A new improved unbundled bill was introduced to all customers.
The good news is the new bill will has a lot more detail and the breakdown finally gives the customer the ability to compare "apples to apples".
The only portion on the bill that is competitive is the energy portion. Once customers see their new bill they can evaluate the price they are paying for energy.
It is a lot to absorb in a short period of time. Cambridge and North Dumfries Hydro Inc. was committed to make the move to a competitive market as seamless as possible for those customers that choose a Retailer for their energy. The best advice we provide to customers is to take your time and watch the price of energy as the market unfolds and all players enter the market. After all there is no rush to sign up, Cambridge and North Dumfries Hydro Inc. will be there. "We are committed to you as our customer - either way - you choose - we deliver".
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