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How is electricity priced?

Electricity is priced based on the cost of generating electricity. This cost is passed on to customers who pay a price in cents per kilowatt hour (¢/kWh) for the amount of electricity they use. In most provinces, a provincial regulator sets the price, which may be based on the amount of electricity used. Regulated rates are set differently in each province. For example, in Ontario electricity thresholds are usually changed twice a year. In other provinces they are set periodically based on market forces when the cost to provide electricity increases or decreases. Electricity providers apply to the provincial regulators to change rates to cover those costs. 

Visit the CANADA ENERGY REGULATOR website for details.

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