Electricity is an essential service for most businesses in Canada, but the price of electricity varies widely across the country. In this blog post, we will compare the average industrial electricity prices in each province and territory, based on a monthly consumption of 100,000 kWh. We will also discuss some factors that affect the electricity rates, such as the type and availability of electricity sources, the demand and supply of electricity, the transmission and distribution costs, the taxes and fees, and the rate design. Finally, we will provide some tips on how to save money on your electricity bill.
According to Statista, the average industrial cost of electricity in Canada was 0.13 CAD. Dollar per kWh, as of June 2023. This includes all components of the electricity bill such as the cost of power, distribution and taxes. However, this average does not reflect the diversity of electricity prices across the country. The table below shows the average total cost of electricity by province and territory, based on a monthly consumption of 100,000 kWh.
Province/Territory Cost in Canadian cents per kWh
Alberta 14.08
British Columbia 7.42
Manitoba 5.43
New Brunswick 10.69
Newfoundland & Labrador 9.02
Nova Scotia 11.58
Northwest Territories 28.11
Nunavut 35.40
Ontario 10.30
Prince Edward Island 11.42
Quebec 5.33
Saskatchewan 11.15
Yukon Territory 14.02
Canada Average 10.30
As you can see, the electricity prices range from 5.33 Canadian cents per kWh in Quebec to 35.40 cents per kWh in Nunavut. Quebec has the cheapest electricity prices for businesses in all of Canada, thanks to its abundant hydroelectric resources. Nunavut has the most expensive electricity prices, due to its remote location and reliance on diesel fuel for electricity generation.
There are many factors that influence the electricity prices in each province and territory, such as:
One of the factors that affects the electricity prices is the delivery or transmission charge. This is the cost of delivering the electricity from the generating stations to your business through high-voltage and low-voltage power lines. The delivery charge includes the cost of building, maintaining, and operating the electricity infrastructure, as well as the cost of losses that occur during transmission and distribution. The delivery charge varies by province and territory, depending on the distance and complexity of the electricity network, the demand and supply of electricity, and the regulatory framework. According to Direct Energy, the delivery charge makes up approximately 33% of a customer’s total electricity bill on average. However, this percentage can be higher or lower depending on the location and the usage of electricity. For example, according to the Ontario Energy Board, the delivery charge for a typical industrial customer in Toronto is about 30% of the total bill, while the delivery charge for a typical industrial customer in Thunder Bay is about 20% of the total bill.
Depending on where you operate and how you use electricity, you may be able to reduce your electricity bill by following some of these tips:
Electricity prices for businesses in Canada vary significantly by province and territory, depending on the type and availability of electricity sources, the demand and supply of electricity, the transmission and distribution costs, the taxes and fees, and the rate design. By comparing the average industrial electricity prices and understanding the factors that affect them, you can make informed decisions about your electricity consumption and find ways to save money on your electricity bill.
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