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direct energy vs toronto hydro?

kuba

TRIBE Member
I got a call from a guy at Direct Energy, wanting to sell me a fixed-rate of 9.5C/kWh for 5-years.

Currently I'm with toronto hydro, who now charges something in the range of 5-6c, based on usage and time, and overage.

they are raising their rate this year something like 20odd%, so soon enough, the bill might match the 9.5c/kwh they are offering

however, i know NOTHING about hydro, so I ask

1/ do rates ever go down?
2/ are you on a fixed or open plan?
3/ anything else you wish to say? (related to hydro)
 

AdRiaN

TRIBE Member
The current Regulated Price Plan (RPP) offered to all residential consumers who have not signed up with a retailer, such as Direct Energy, pay a two-tier price of 5.8 / 6.7 cents per kilowatt-hour as of May 1, 2006. These prices are about 20% higher than last year.

A typical household will pay about 6.0 cents on average assuming they consume 1,000 kWh per month.

In other words, the fixed price of 9.5 cents offered by Direct Energy is a 58% premium above current prices. Does this sound reasonable? Personally, I don't think so. Even with record high temperatures during the summer of 2005 along with record high natural gas prices, we never saw electricity prices hit an average above 9.5 cents over the year.

Also, keep in mind that the government has announced yet another delay in its plan to close coal plants in Ontario. They will almost certainly be open over most, if not all, of the next five years. Coal plants are much cheaper than whatever sources are going to replace them, which should have a moderating effect on electricity prices.
 
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glych t.anomaly

TRIBE Member
from what i understand, Direct energy and Toronto Hydro are the only major providers available to the greater GTA, Union energy, soon to be reliance home comfort, basically bought union gas, which is every other major city outside of toronto east west and north.

so union is not available to you, from the trends that were taught in the training sessions, when i was going to possibly work for Union Energy, before i learned i would be cold call selling plans like the guy who called you, basically they are who will be Unions direct competitor, i have heard only bad things about toronto hydro, and locking yourself into a 5 year constant, well i dont know about that, union was only 2 years, but with the trends we have seen in power distributionand the lack of it over the last couple of years, might point towards the costs rising. i dont really know though




[jai]
 

Klubmasta Will

TRIBE Member
tough call, but i'd stay with toronto hydro. mind you i've done no independant research on this topic. i think my condo board looked at this issue and that's what they decided to do.
 

AdRiaN

TRIBE Member
Just another note about choosing your electricity supplier. Toronto Hydro will always be responsible for maintaining the wires to your house and reading your electricity meter, regardless of whether you sign up with a retailer.

This is important to remember because so often, when people complain about "problems" with their supplier, it's an issue of power outages, new connections or meter readings.
 
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jazzsax

TRIBE Member
I ran the math... for an average user, over 5 years if rates increase 15% a year, you'll end up paying the same (don't forget the savings in the earlier years versus paying more in the later years).

Do we really think they'll increase 15% a year? Maybe. Would I rather have the funds in my hands now? Yes. It's a gamble either way. I turned down their offer once I ran the numbers. (You have 10 days to cool off, otherwise you're locked in for the 5 years. It's a pretty tight contract)
 
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AdRiaN

TRIBE Member
jazzsax said:
Do we really think they'll increase 15% a year? Maybe. Would I rather have the funds in my hands now? Yes. It's a gamble either way. I turned down their offer once I ran the numbers.
A few more numbers to consider as well:

Weighted Average Market Price for Electricity in Ontario

May 2002 - April 2003 = 6.2 cents/kWh
May 2003 - April 2004 = 5.0 cents/kWh
May 2004 - April 2005 = 5.3 cents/kWh
May 2005 - April 2006 = 6.9 cents/kWh

Source: Independent Electricity System Operator (IESO)

The market price for electricity does not always go up.

That being said, I do believe there is some merit in signing up with a green retailer such as Bullfrog Energy. If you are willing to pay a premium for your power (and you will be paying more for sure), you can at least take some comfort in knowing that you are making a contribution towards the development of renewable energy in Ontario.
 

zoo

TRIBE Member
once some sneaky dude convinced my roommate to sign up to an energy reseller, to fix it i had to jump through inconvenient legal hoops like sending in a cancellation letter because they wouldn't allow verbal authorization for cancellation over the phone
 

kuba

TRIBE Member
I'm not in a position to sing up with bullfrog, at the moment.

However, adrian, your IESO numbers was what I was loking for. The guy has called me three times, and I've told him to hold off while I'm doing research. 9.5c sounds like much too much right now, and I'm going to stay w/ TH.

Thanks everyone!
 
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lobo

TRIBE Member
I was wondering about this too and I told them no the other night. I too think that 9.5c is a bit much right now and based on adrian's numbers I'd say I'm going to stay with TH for now. Now Direct Energy's gas offer was pretty sweet. I locked in for five years at 30.9c just before it skyrocketed to 40+c.

Lobo
 
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