Understanding the cost of energy in Ontario can be a frustrating process. Prices change in response to supply and demand. But there are still ways to reduce energy costs, especially for business owners.
The Ontario wholesale energy price of electricity is determined in the real-time market administered by the Independent Electricity System Operator (IESO). All electricity large volume consumers with a peak demand of 50 kw in Ontario pay the wholesale price, except for those who are on a Regulated Price Plan (RPP) or have entered into supply agreements.
HOEP is the average of the twelve market clearing prices (MCP) set in each hour. A new MCP is set every five minutes. Averages are weighted by the amount of electricity used throughout the province within each hour.
HOEP is determined by matching supply with the provincial demand for electricity. All electricity rates reflect the wholesale electricity price in some way. That means the wholesale price is dynamic, changing every hour based on demand and the availability of supply. Factors impacting demand include consumer behavior, weather, time of day, day of the week, even current economic conditions. More specifically, HOEP is the average of the twelve market clearing prices (MCP) set in each hour. A new MCP is set every five minutes. Averages are weighted by the amount of electricity used throughout the province within each hour.
Such businesses can improve their energy costs by using companies like Active Business Services that can provide Canadian commercial and industrial customers with natural gas and electricity supply and risk management solutions.
According to the IESO’s Save on Energy website, Ontario businesses can also save money by involving staff in the energy efficiency process. Such businesses can improve their energy costs by using companies like Active Business Services that can provide Canadian commercial and industrial customers with natural gas and electricity supply and risk management solutions.
“Every organization’s culture is different, and there’s no standard recipe for success when it comes to engaging employees around energy efficiency,” says Kady Cowan, an energy management expert at the IESO.
Cowan says effective energy management begins with understanding that it’s not just about technical projects, it’s about making energy efficiency part of each organization’s culture.
A company’s biggest energy champions don’t necessarily have to be people with technical expertise, adds Stephen Dixon, an independent consultant who helps businesses implement energy efficiency.
Most energy managers are technically savvy, but Dixon says they also must convince staff from other departments who don’t work directly on energy projects to get involved.
For example, the staff at the Thunder Bay Regional Health Sciences Centre discovered that the hospital’s airflow system was working 24/7, resulting in some areas getting too much air, particularly at night. Anne-Marie Heron, executive director of planning and operations, decided that if areas were unoccupied then the air handlers would be cut back. The change resulted in immediate energy savings.
Heron also set up a watchdog system, allowing employees to control the air supply. “The more we know about where and when we’re using energy, the better we’re able to manage our usage and our costs,” she says.
