Usage Fees

Effective January 1, 2017, the IESO’s two separate usage fees are a fee of $1.2187/MWh to domestic customers and another fee of $0.9872/MWh to export customers.

The usage fee of $1.2187/MWh to domestic customers is applied to each market participant's allocated quantity of energy withdrawn (AQEW) from the IESO-controlled grid plus the embedded generation volumes reported by each LDC to the IESO on a monthly basis.

The usage fee of $0.9872/MWh to export customers is applied to each market participant's scheduled quantity of energy withdrawn (SQEW).

Smart Metering Entity Charge

The IESO operates as the Smart Metering Entity (SME) under licence by the Ontario Energy Board. The SME is responsible for the implementation and operation of the province’s Metering Data Management/Repository (MDM/R), which manages consumption data for residential and small business smart meters to support time-of-use billing. The current Smart Metering charge of $0.79 per meter per month was approved by the OEB and is levied and collected by the licensed electricity distributors from Residential and General Service <50kW customers.

On August 31, 2017, the IESO, in its capacity as the SME, filed an application for a new fee with the Ontario Energy Board. In the application the IESO has proposed a Smart Metering Charge of $0.59 per meter per month from January 1, 2018 to December 31, 2022. The proposed fee is a reduction from the current Smart Metering Charge of $0.79 per meter per month. The application and other documents which form the record of the OEB’s proceeding are available on the OEB’s webpage.

For more information about Ontario's smart metering program, see A Smarter Grid.