OPG has taken ownership of Ontario Hydro's generation assets and is responsible for generating electricity. OHSC is a holding company for the transmission, distribution and retail services side of Ontario Hydro's business. Just like long distance telephone and natural gas businesses, customers will have the option of arranging for electricity directly, at a set price, through the market. Most customers will continue to receive their electricity bill from the local distribution company. Those not wishing to change energy suppliers by signing a contract with a licensed energy retailer will continue to receive electricity from the local distribution company.
Competition encourages greater product and service innovation, and ultimately lower prices.
Industry experts expect prices to rise before they will fall, reasoning the major components of local hydro bills are the generation and transmission of electricity. Under the legislation, a large part of the generation price for electricity has been frozen for the first four years of market competition. For truly lower rates, that generation price must be competitive. The local distribution company, along with now having to pay income taxes and dividends, will no longer collect development charges to fund new infrastructure and must take on new costs associated with distribution, such as more complex billing systems. Suppliers and customers must be assured of fair and reasonable terms for accessing the transmission and distribution networks.