PAYMENTS RE SECTION 25.34 OF THE ACT

Electricity Act, 1998
loi de 1998 sur l’électricité

ONTARIO REGULATION 431/04

No Amendments

PAYMENTS RE SECTION 25.34 OF THE ACT

Historical version for the period January 1, 2005 to August 22, 2005.

This Regulation is made in English only.

Interpretation

1. (1) In this Regulation,

“contract price” means, with reference to a designated contract, the amount that would be payable for electricity by the regulated consumer under the contract, but for the operation of subsection 79.4 (1) or 79.16 (1) of the Ontario Energy Board Act, 1998;

“designated contract” means a contract entered into on or before November 11, 2002 between a regulated consumer and a retailer with respect to which a service transaction request as defined in the Retail Settlement Code is or has been implemented to enable the regulated consumer to purchase electricity from a competitive retailer as defined in the Retail Settlement Code, but does not include a contract renewed after December 9, 2002;

“embedded distributor” means a licensed distributor who is not a market participant and to whom a host distributor distributes electricity;

“host distributor” means a licensed distributor who is a market participant and who distributes electricity to another licensed distributor who is not a market participant;

“licensed distributor” means a distributor who is licensed under Part V of the Ontario Energy Board Act, 1998;

“participating retailer” means a retailer who has entered into one or more designated contracts;

“regulated consumer” means a consumer whose price or rate for electricity is determined by regulation or by the Board under subsection 78 (3.1), 79.4 (1) or 79.16 (1) of the Ontario Energy Board Act, 1998;

“Retail Settlement Code” means the Retail Settlement Code approved by the Board under the Ontario Energy Board Act, 1998. O. Reg. 431/04, s. 1 (1).

(2) In this Regulation, a reference to a volume of electricity distributed by a licensed distributor includes the volume for total losses, as defined in the Retail Settlement Code, that is attributed to the licensed distributor’s consumers or to an embedded distributor. O. Reg. 431/04, s. 1 (2).

(3) Payments required by this Regulation are in addition to any payments that may be required by the Retail Settlement Code. O. Reg. 431/04, s. 1 (3).

Application

2. (1) This Regulation applies with respect to electricity to which a designated contract applies if the electricity is used by a regulated consumer on or after January 1, 2005. O. Reg. 431/04, s. 2 (1).

(2) For the purposes of determining the volume of electricity used on or after January 1, 2005 if a billing period includes that day, a retailer who uses retailer-consolidated billing may estimate the volume of electricity used by a regulated consumer during the billing period that is to be allocated to the portion of the billing period before that day and the volume of electricity to be allocated to the portion of the billing period that is on and after that day. O. Reg. 431/04, s. 2 (2).

Prescribed contracts

3. Contracts between participating retailers and regulated consumers that are designated contracts are prescribed for the purposes of subsection 25.34 (1) of the Act. O. Reg. 431/04, s. 3.

Payments, retailers using distributor-consolidated billing

4. (1) The following rules apply if a licensed distributor who is a market participant is required by the Retail Settlement Code to make a payment for electricity used by a regulated consumer under a designated contract to a participating retailer who is using distributor-consolidated billing for the contract:

1. The licensed distributor shall give the IESO such information as the IESO may specify with respect to the payment in the form specified by the IESO and before the expiry of the period specified by the IESO.

2. The IESO shall give the OPA such information as the OPA may specify with respect to the payment in the form specified by the OPA and before the expiry of the period specified by the OPA.

3. After receiving the information required under paragraph 2, the OPA shall make a payment to the IESO equal in amount to the payment required to be made by the licensed distributor to the participating retailer.

4. After receiving the information required under paragraph 1, the IESO shall make a payment to the licensed distributor equal in amount to the payment required under paragraph 3. O. Reg. 431/04, s. 4 (1).

(2) The following rules apply if a participating retailer who is using distributor-consolidated billing for a designated contract is required by the Retail Settlement Code to make a payment to a licensed distributor for electricity used by a regulated consumer under the contract:

2. The IESO shall give the OPA such information as the OPA may specify with respect to the payment in the form specified by the OPA and before the expiry of the period specified by the OPA.

3. The licensed distributor shall make a payment to the IESO before the expiry of the period specified by the IESO equal in amount to the payment by the participating retailer to the licensed distributor.

4. After receiving the information required under paragraph 1, but before the expiry of the period specified by the OPA, the IESO shall make a payment to the OPA equal in amount to the payment required under paragraph 3. O. Reg. 431/04, s. 4 (2).

(3) If the OPA and the IESO establish protocols under section 8 authorizing interim payments based on estimates with subsequent adjustments, subsections (1) and (2) apply with necessary modifications with respect to the interim payments. O. Reg. 431/04, s. 4 (3).

Payments, retailers using distributor-consolidated billing with embedded distributor

5. (1) The following rules apply if an embedded distributor is required by the Retail Settlement Code to make a payment for electricity used by a regulated consumer under a designated contract to a participating retailer who is using distributor-consolidated billing for the contract:

1. The embedded distributor shall give its host distributor such information as the IESO may specify with respect to the payment and shall do so before the expiry of the period specified by the host distributor.

2. The host distributor shall give the IESO such information as the IESO may specify with respect to the payment in the form specified by the IESO and before the expiry of the period specified by the IESO.

3. The IESO shall give the OPA such information as the OPA may specify with respect to the payment in the form specified by the OPA and before the expiry of the period specified by the OPA.

4. After receiving the information required under paragraph 3, the OPA shall make a payment to the IESO equal in amount to the payment by the embedded distributor to the participating retailer.

5. After receiving the information required under paragraph 2, the IESO shall make a payment to the host distributor of the embedded distributor equal in amount to the payment required under paragraph 4.

6. Before the expiry of the period specified by the Board, the host distributor shall make a payment to the embedded distributor equal in amount to the payment required under paragraph 4. O. Reg. 431/04, s. 5 (1).

(2) The following rules apply if a participating retailer who is using distributor-consolidated billing for a designated contract is required by the Retail Settlement Code to make a payment to an embedded distributor for electricity used by a regulated consumer under the contract:

3. The IESO shall give the OPA such information as the OPA may specify with respect to the payment in the form specified by the OPA and before the expiry of the period specified by the OPA.

4. Before the expiry of the period specified by the Board, the embedded distributor shall make a payment to the host distributor equal in amount to the payment by the participating retailer to the embedded distributor.

5. Before the expiry of the period specified by the IESO, the host distributor shall make a payment to the IESO equal in amount to the payment required under paragraph 4.

6. After receiving the information required under paragraph 2 but before the expiry of the period specified by the OPA, the IESO shall make a payment to the OPA equal in amount to the payment required under paragraph 4. O. Reg. 431/04, s. 5 (2).

Payments, retailers using retailer-consolidated billing

6. (1) In this section,

“A” is the amount, calculated at the contract price, that is payable for a volume of electricity supplied under a designated contract,

(a) by a regulated consumer in the service area of a licensed distributor who is a market participant, and

(b) to a participating retailer who is using retailer-consolidated billing;

“B” is the amount that would be payable by the participating retailer to the licensed distributor for the same volume of electricity in the same circumstances if the amount were to be calculated under the Retail Settlement Code. O. Reg. 431/04, s. 6 (1).

(2) If there is a difference between a participating retailer’s “A” in respect of a designated contract and “B”,

(a) the participating retailer shall give the licensed distributor such information as the IESO may specify with respect to the amounts and shall do so before the expiry of the period specified by the licensed distributor;

(b) the licensed distributor shall give the IESO such information as the IESO may specify with respect to the amounts in the form specified by the IESO and before the expiry of the period specified by the IESO; and

(c) the IESO shall give the OPA such information as the OPA may specify with respect to the amounts in the form specified by the OPA and before the expiry of the period specified by the OPA. O. Reg. 431/04, s. 6 (2).

(3) The following rules apply if a participating retailer’s “A” in respect of a designated contract is greater than “B”:

1. The OPA shall make a payment equal in amount to the amount of the difference to the IESO after receiving the information required under clause (2) (c).

2. The IESO shall make a payment equal in amount to the payment required under paragraph 1 to the licensed distributor after receiving the information required under clause (2) (b).

3. The licensed distributor shall make a payment equal in amount to the payment required under paragraph 1 to the participating retailer before the expiry of the period specified by the Board. O. Reg. 431/04, s. 6 (3).

(4) The following rules apply if a participating retailer’s “A” in respect of a designated contract is less than “B”:

1. The participating retailer shall make a payment equal in amount to the difference to the licensed distributor before the expiry of the period specified by the Board.

2. The licensed distributor shall make a payment equal in amount to the payment required under paragraph 1 to the IESO before the expiry of the period specified by the IESO.

3. The IESO shall make a payment equal in amount to the payment required under paragraph 1 to the OPA after receiving the information required under clause (2) (b) and before the expiry of the period specified by the OPA. O. Reg. 431/04, s. 6 (4).

(5) If the OPA and the IESO establish protocols under section 8 authorizing interim payments based on estimates with subsequent adjustments, subsections (1), (2), (3) and (4) apply with necessary modifications with respect to the interim payments. O. Reg. 431/04, s. 6 (5).

Payments, retailers using retailer-consolidated billing with embedded distributor

7. (1) In this section,

“C” is the amount, calculated at the contract price, that is payable for electricity under a designated contract by a regulated consumer in an embedded distributor’s service area to a participating retailer who is using retailer-consolidated billing, for the volume of electricity supplied under the contract; and

“D” is the amount that would be payable by the participating retailer to the embedded distributor for the same volume of electricity in the same circumstances if the amount were to be calculated under the Retail Settlement Code. O. Reg. 431/04, s. 7 (1).

(2) If there is a difference between a participating retailer’s “C” in respect of a designated contract and “D”,

(a) the participating retailer shall give the embedded distributor such information as the IESO may specify with respect to the amounts and shall do so before the expiry of the period specified by the embedded distributor;

(b) the embedded distributor shall give its host distributor such information as the IESO may specify with respect to the amounts and shall do so before the expiry of the period specified by the host distributor;

(c) the host distributor shall give the IESO such information as the IESO may specify with respect to the amounts in the form specified by the IESO and before the expiry of the period specified by the IESO; and

(d) the IESO shall give the OPA such information as the OPA may specify with respect to the amounts in the form specified by the OPA and before the expiry of the period specified by the OPA. O. Reg. 431/04, s. 7 (2).

(3) The following rules apply if a participating retailer’s “C” in respect of a designated contract is greater than “D”:

1. The OPA shall make a payment equal in amount to the difference to the IESO after receiving the information required under clause (2) (d).

2. The IESO shall make a payment equal in amount to the payment required under paragraph 1 to the host distributor after receiving the information required under clause (2) (c).

3. The host distributor shall make a payment equal in amount to the payment required under paragraph 1 to the embedded distributor before the expiry of the period specified by the Board.

4. The embedded distributor shall make a payment equal in amount to the payment required under paragraph 1 to the participating retailer before the expiry of the period specified by the Board. O. Reg. 431/04, s. 7 (3).

(4) The following rules apply if the participating retailer’s “C” in respect of a designated contract is less than “D”:

1. The participating retailer shall make a payment equal in amount to the difference to the embedded distributor before the expiry of the period specified by the Board.

2. The embedded distributor shall make a payment equal in amount to the payment required under paragraph 1 to its host distributor before the expiry of the period specified by the Board.

3. The host distributor shall make a payment equal in amount to the payment required under paragraph 1 to the IESO before the expiry of the period specified by the IESO.

4. The IESO shall make a payment equal in amount to the payment required under paragraph 1 to the OPA after receiving the information required under clause (2) (c) and before the expiry of the period specified by the OPA. O. Reg. 431/04, s. 7 (4).

Interim payments based on estimates

8. (1) The OPA may establish protocols authorizing interim payments based on estimates with subsequent adjustments for payments required under any of the following provisions:

1. Paragraph 3 of subsection 4 (1) and paragraph 4 of subsection 4 (2).

2. Paragraph 4 of subsection 5 (1) and paragraph 6 of subsection 5 (2).

3. Paragraph 1 of subsection 6 (3) and paragraph 3 of subsection 6 (4).

4. Paragraph 1 of subsection 7 (3) and paragraph 4 of subsection 7 (4). O. Reg. 431/04, s. 8 (1).

(2) The IESO may establish protocols authorizing interim payments based on estimates with subsequent adjustments for payments required under any of the following provisions:

1. Paragraph 4 of subsection 4 (1) and paragraph 3 of subsection 4 (2).

2. Paragraph 5 of subsection 5 (1) and paragraph 5 of subsection 5 (2).

3. Paragraph 2 of subsection 6 (3) and paragraph 2 of subsection 6 (4).

4. Paragraph 2 of subsection 7 (3) and paragraph 3 of subsection 7 (4). O. Reg. 431/04, s. 8 (2).

(3) If the IESO establishes protocols authorizing interim payments with subsequent adjustments for any payments required under section 5, 6 or 7, the Board may specify different periods for the interim payments and subsequent adjustments under any of the following corresponding provisions:

1. Paragraph 6 of subsection 5 (1) and paragraph 4 of subsection 5 (2).

2. Paragraph 3 of subsection 6 (3) and paragraph 1 of subsection 6 (4).

3. Paragraphs 3 and 4 of subsection 7 (3) and paragraphs 1 and 2 of subsection 7 (4). O. Reg. 431/04, s. 8 (3).

Reporting to the OPA and the Board

9. (1) Upon request, the IESO or a licensed distributor or participating retailer shall give the OPA such information relating to payments required by this Regulation as the OPA may require in the form and within the period specified by the OPA. O. Reg. 431/04, s. 9 (1).

(2) Upon request, the OPA, the IESO or a licensed distributor or participating retailer shall give the Board such information relating to payments required by this Regulation as the Board may require in the form and within the period specified by the Board. O. Reg. 431/04, s. 9 (2).

Method of payment

10. (1) Payments required by this Regulation between the IESO and the OPA may be made at the option of the OPA by way of set-off in the accounts maintained by the IESO. O. Reg. 431/04, s. 10 (1).

(2) Payments required by this Regulation between licensed distributors and the IESO may be made at the option of the IESO by way of set-off in the accounts maintained by the IESO. O. Reg. 431/04, s. 10 (2).

(3) Payments required by this Regulation between an embedded distributor and its host distributor may be made at the option of the host distributor by way of set-off in the accounts maintained by the host distributor. O. Reg. 431/04, s. 10 (3).

(4) Payments required by this Regulation between a participating retailer and a licensed distributor who is a market participant may be made at the option of the licensed distributor by way of set-off in the accounts maintained by the licensed distributor. O. Reg. 431/04, s. 10 (4).

(5) Payments required by this Regulation between a participating retailer and an embedded distributor may be made at the option of the embedded distributor by way of set-off in the accounts maintained by the embedded distributor. O. Reg. 431/04, s. 10 (5).

Timing of payments by the OPA or IESO

11. (1) The OPA shall make each payment to the IESO required by this Regulation after the OPA receives the required information from the IESO in accordance with this Regulation, and the payment shall be reflected in the first invoice sent to the OPA after the IESO sends that information to the OPA. O. Reg. 431/04, s. 11 (1).

(2) The IESO shall make each payment to a licensed distributor that is required by this Regulation after the IESO receives the required information from the licensed distributor in accordance with this Regulation, and the payment shall be reflected in the first invoice sent to the licensed distributor after the IESO receives that information from the licensed distributor. O. Reg. 431/04, s. 11 (2).

Reliance on certain information

12. (1) For the purposes of the payments required by this Regulation between the IESO and the OPA or the IESO and licensed distributors, the IESO shall rely on the information provided to it by the licensed distributors. O. Reg. 431/04, s. 12 (1).

(2) For the purposes of payments required by this Regulation between host distributors and embedded distributors, host distributors shall rely on the information provided to them by the embedded distributors. O. Reg. 431/04, s. 12 (2).

(3) For the purposes of the payments required by section 4 or 6 between licensed distributors and the IESO or licensed distributors and participating retailers, licensed distributors shall rely on the information provided to them by the participating retailers. O. Reg. 431/04, s. 12 (3).

(4) For the purposes of payments required by section 5 or 7 between embedded distributors and host distributors or embedded distributors and participating retailers, embedded distributors shall rely on the information provided to them by the participating retailers. O. Reg. 431/04, s. 12 (4).

13. Omitted (provides for coming into force of provisions of this Regulation). O. Reg. 431/04, s. 13.