Consider opting out of the regulated price plan (RPP)
For small businesses, chains, or franchises you may be surprised to learn that Time of Use (TOU) electricity rates are actually costing you money. By design, RPP rates are meant to stabilize your electricity price, but how much are you willing to pay for that stability? In most cases, the RPP has cost businesses an additional 15% compared to actual market rates.
What are TOU Rates?
TOU rates were introduced to improve the RPP; however, they also came in with an additional agenda – to reduce stress on the power system. By charging high daytime and low nighttime rates, users are encouraged to shift their consumption and avoid high demand periods. Unfortunately for your business, it can’t operate that way and you’ve been forced to pay the daytime premiums.
The good news is that you can opt out of the RPP and this is why you should do it. If you’re a typical small business you probably consume 30% on-peak (highest priced), 30% mid-peak (medium priced), & 40% off-peak (low priced) power. With that profile you would have paid ~1.1ȼ/kWh too much for electricity over the past 36 months, that’s almost 15% more than market rates.
Figure 1: RPP rates compared to market rates for the past 36 months
Last month alone business paying market rates were only charged ~2.5ȼ/kWh while those on regulated rates continued to pay ~10ȼ/kWh (notice the significant dip on the graph). For the penny collectors out there, that’s over 75,000 copper coins for a business with a $1000/month bill. As a small chain or an entire franchise; those pennies grow into big bucks pretty quickly.
An Added Bonus
If you’re not convinced yet, here’s an added bonus. When you leave the RPP you’ll receive a 12 month rebate credited on your next electricity bill. It’s not going to re-coup what you lost; however, it will cover the costs of our Market Tracker Program, and access to our Virtual Energy Manager for an entire year.
The analysis provided is a look into the past. When procuring power, it is always best to consider the past, but also use all available information to look to the future. We believe these trends will continue in Ontario, and most RPP and TOU customers will see a benefit by moving to the Bruce Power ‘Market Tracker’ program. If you weren’t convinced of the benefits of this program with the graph above, here is another graph that shows your potential cumulative savings over the same period. This graph is based on an average sized retail location, with average daily usage. If you are a large consumer, you can assume the benefits would be proportionally greater.
Call me for more information or to sign up today.