Electricity Price Savings and Predictability Options
The Ontario electricity market can be volatile. Over the past few years the Regulated Price Plan (RPP) costs have increased approximately 40%, which can create significant challenges to those housing providers that operate on tight budgets. In this uncertain market, having a pricing strategy in place is key to controlling operating costs and budgets over time.
To assist FRPO members with managing their energy costs, we have partnered with ECNG Energy L.P. For the past 20 years FRPO and ECNG have been providing stable and predictable natural gas pricing to members but FRPO also has an electricity program with ECNG to assist members in controlling energy costs.
The Electricity program seeks to stabilize costs by using competitive tenders and aggregation of member volumes when approaching the energy supply community.
For small to medium FRPO consumers:
- The FRPO program will give members an alternative to the Regulated Price Plan by moving them to the Hourly Ontario Electricity Price (wholesale market) program.
- The aim is to provide members stable and budgetable pricing for longer than the 6-month duration of the RPP rates.
- To offer a beneficial alternative to both the utility price and “retailer” offerings.
- To provide flexible price hedging options to all members.
What would change with my current billing?
- Members leaving the RPP prices will be moved to the Hourly Ontario Electricity price (HOEP)
- The HOEP is calculated every hour based upon total Ontario demand and cost of available supply
- The price on the utility invoice is based on the HOEP and hourly consumption for each month.
- The HOEP will vary month to month.
- Members will see the Global Adjustment (GA) charge separately when they move from the RPP. Previously the GA would have been part of the RPP pricing.
- Members will be invoiced by the utility the same as usual but the cost for the electricity supply will appear as a single line item on the invoice (referencing ECNG Energy LP as the supplier).
What is the Global Adjustment?
- The Global Adjustment (GA) is charged to all users in Ontario (even those on the RPP, it is just buried in the rates).
- The GA recovers the cost of contracted generation that is paid a different rate than the Hourly Ontario Electricity Price (HOEP) and all other contract costs incurred by the IESO (formerly the Ontario Power Authority) for new wind, solar and gas-fired generation as well as demand response and conservation programs.
Group Purchasing Leverage
- As a member of the FRPO electricity program you are taking advantage of the group buying power.
- The consumption volumes for each member are added together, providing a much larger volume when purchasing the electricity fixed price hedges, which results in much better pricing.
Large FRPO Consumer Opportunities
- FRPO members that consume over 1,000,000 kWhs per year could consider a more customized hedging program – designed for their specific needs.
- This program gives all the benefits of being part of a larger group while providing more price flexibility.
- An individual strategy will be developed based upon the member’s consumption pattern.
The Power of the RFP
- ECNG has the expertise to get electricity suppliers in competition for our clients’ needs.
- When ECNG purchases on behalf of FRPO members, volumes are aggregated together with other FRPO members as well as other ECNG clients (making the volume as large as possible).
- Electricity suppliers are incented to offer wholesale pricing in a competitive setting.
- ECNG then purchases from the supplier with the best price at or below the authorized price.
- This approach has proven to be a major driver of measurable benefits to FRPO members.
Energy Savings Opportunities
- Members of the FRPO electricity program have access to the FRPO Energy Efficiency Program.
- This program assists FRPO members in achieving energy reductions and provide ongoing savings through the ECNG Alliance Partner Program.
- It provides members with information regarding current energy rebates and program incentives.
- It offers members the opportunity to get customized solutions utilizing a network of preferred partners.
- It identifies the savings potential for each project.
- It provides a single point of contact for all energy savings programs and solutions.
How does the enrollment process work?
- ECNG obtains the current electricity invoices for each meter from the interested FRPO member.
- ECNG completes a cost analysis for each meter to determine eligibility – this Identifies all meters that would benefit from the program.
- ECNG provides the member with the Electricity Program Application and Agreement.
- Once the agreement is signed by the member, meters that qualify are enrolled by ECNG.
- ECNG profiles all consumption data from FRPO member locations.
- ECNG supplies ongoing strategy review.
- ECNG identifies potential hedge opportunities.
How do I enroll into the FRPO Program?
Please contact Sasha at ECNG Energy to determine applicable volume. Once the applicable volume is established, ECNG will provide you with an appropriate enrollment form. Sasha can be contacted at (905) 635-3280 or firstname.lastname@example.org
For Frequently Asked Questions and Case Studies showing analysis and savings projections, please click here.