PART V REGULATION OF ELECTRICITY
Licence conditions
70 (1) A licence under this Part may prescribe the conditions under which a person may engage in an activity set out in section 57 and a licence may also contain such other conditions as are appropriate having regard to the objectives of the Board and the purposes of the Electricity Act, 1998. 1998, c. 15, Sched. B, s. 70 (1). Approvals, etc., with or without holding hearing (1.1) The Board may, with or without a hearing, grant an approval, consent or make a determination that may be required for any of the matters provided for in a licensee’s licence. 2009, c. 12, Sched. D, s. 10. Examples of conditions (2) The conditions of a licence may include provisions, (a)  specifying the period of time during which the licence will be in effect; (b)  requiring the licensee to provide, in the manner and form determined by the Board, such information as the Board may require; (c)  requiring the licensee to enter into agreements with other persons on specified terms (including terms for a specified duration) approved by the Board relating to its trading or operations or for the connection to or use of any lines or plant owned or operated by the licensee or the other party to the agreement; (d)  governing the conduct of the licensee, including the conduct of, (i)  a transmitter or distributor as that conduct relates to its affiliates, (ii)  a distributor as that conduct relates to a retailer, (ii.1)  a distributor or suite meter provider as such conduct relates to, (A)  the disconnection of the supply of electricity to a consumer, including the manner in which and the time within which the disconnection takes place or is to take place, and with respect to a low-volume consumer, periods during which the disconnection may not take place, (B)  the manner, timing and form in which the notice under subsection 31 (2) of the Electricity Act, 1998 is to be provided to the consumer, and (C)  subject to the regulations, the manner and circumstances in which security is to be provided or not to be provided by a consumer to a distributor or suite meter provider, including, (1)  the interest rate to be applied to amounts held on deposit and payable by the distributor or suite meter provider to the consumer for the amounts, (2)  the manner and time or times by which the amounts held on deposit may or must be paid or set-off against amounts otherwise due or payable by the consumer, (3)  the circumstances in which security need not be provided or in which specific arrangements in respect of security may or must be provided by the distributor or suite meter provider to the consumer, and (4)  such other matters as the Board may determine in respect of security deposits, (iii)  a retailer, and (iv)  a generator, retailer or person licensed to engage in an activity described in clause 57 (f) or an affiliate of that person as that conduct relates to the abuse or possible abuse of market power; (d.1)  governing conditions relating to any matter prescribed by regulation in respect of retailers of electricity in relation to the retailing of electricity, subject to any regulations made under this Act; (e)  specifying methods or techniques to be applied in determining the licensee’s rates; (f)  requiring the licensee to maintain specified accounting records, prepare accounts according to specified principles and maintain organizational units or separate accounts for separate businesses in order to prohibit subsidies between separate businesses; (g)  specifying performance standards, targets and criteria; (h)  specifying connection or retailing obligations to enable reasonable demands for electricity to be met; (i)  specifying information reporting requirements relating to the source of electricity and emissions caused by the generation of electricity; (j)  requiring the licensee to expand or reinforce its transmission or distribution system in accordance with market rules in such a manner as the IESO or the Board may determine; (k)  requiring the licensee to enter into an agreement with the IESO that gives the IESO the authority to direct operations of the licensee’s transmission system; (l)  Repealed: 2016, c. 10, Sched. 2, s. 15. (m)  requiring licensees, where a directive has been issued under section 28.2, to implement such steps or such processes as the Board or the directive requires in order to address risks or liabilities associated with customer billing and payment cycles in respect of the cost of electricity at the retail and at the wholesale levels and risks or liabilities associated with non-payment or default by a consumer or retailer. 1998, c. 15, Sched. B, s. 70 (2); 2003, c. 3, s. 47 (1); 2004, c. 23, Sched. B, s. 11 (1-3); 2010, c. 8, s. 38 (10, 11); 2016, c. 10, Sched. 2, s. 15; 2017, c. 1, s. 2 (1). Deemed conditions of licences, transmitters and distributors (2.1) Every licence issued to a transmitter or distributor shall be deemed to contain the following conditions: 1.  Repealed: 2021, c. 25, Sched. 19, s. 1. 2.  The licensee is required to prepare plans, in the manner and at the times mandated by the Board or as prescribed by regulation and to file them with the Board for approval for, i.  the expansion or reinforcement of the licensee’s transmission system or distribution system to accommodate the connection of renewable energy generation facilities, and ii.  the development and implementation of the smart grid in relation to the licensee’s transmission system or distribution system. 3.  The licensee is required, in accordance with a plan referred to in paragraph 2 that has been approved by the Board or in such other manner and at such other times as mandated by the Board or prescribed by regulation, i.  to expand or reinforce its transmission system or distribution system to accommodate the connection of renewable energy generation facilities, and ii.  to make investments for the development and implementation of the smart grid in relation to the licensee’s transmission system or distribution system. 4.  Repealed: 2019, c. 6, Sched. 3, s. 12 (1). 2009, c. 12, Sched. D, s. 10; 2017, c. 16, Sched. 1, s. 44 (1); 2019, c. 6, Sched. 3, s. 12 (1); 2021, c. 25, Sched. 19, s. 1. (2.2) Repealed: 2020, c. 34, Sched. 14, s. 2. Deemed condition of licences, unit sub-meter provider, Ontario Rebate for Electricity Consumers Act, 2016 (2.3) Every licence issued to a unit sub-meter provider is deemed to contain the condition that the unit sub-meter provider is required to comply with the Ontario Rebate for Electricity Consumers Act, 2016 and the regulations made under it. 2016, c. 19, s. 17 (2). (2.4) Repealed: 2019, c. 6, Sched. 3, s. 12 (2). Where no agreement (3) If the parties to an agreement under clause (2) (k) cannot agree on a proposed amendment to the agreement, the parties may jointly apply to the Board for a resolution of the matter. 1998, c. 15, Sched. B, s. 70 (3). Market rules (4) Every licence shall be deemed to contain a condition that the licensee comply with the market rules that apply to that licensee. 1998, c. 15, Sched. B, s. 70 (4). Records in Ontario (4.1) Every licence shall be deemed to contain a condition requiring the licensee to comply with any requirements set by the Board with respect to keeping certain records of the licensee in Ontario. 2015, c. 29, s. 12 (1). Abuse of market power (5) Without limiting the generality of subsection (1), a licence to engage in an activity described in clause 57 (c), (d) or (f) may contain conditions to address the abuse or possible abuse of market power, including conditions, (a)  establishing minimum and maximum prices or a range of prices at which electricity may be offered for sale or sold through the IESO-administered markets or directly to another person or class of persons; (b)  restricting the duration of contracts between licensees and any other person; and (c)  restricting significant investment in or acquisition of generation facilities located in Ontario. 1998, c. 15, Sched. B, s. 70 (5); 2004, c. 23, Sched. B, s. 11 (4). Non-exclusive (6) Unless it provides otherwise, a licence under this Part shall not hinder or restrict the grant of a licence to another person within the same area and the licensee shall not claim any right of exclusivity. 1998, c. 15, Sched. B, s. 70 (6). Distributors:  connection of generation facilities (6.1) The licence issued to a distributor shall contain conditions governing the connection of generation facilities to the distribution system, including the maximum cumulative generating capacity from generators to whom the regulations made under clause 88 (1) (g.1) or subsection 88 (2.1) apply that the distributor must allow to be connected to the distribution system. 2002, c. 23, s. 4 (8); 2017, c. 34, Sched. 31, s. 1. Requirement to provide information (7) Every licence, other than a licence issued to the IESO, is deemed to contain a condition that the licensee is required to provide such reasonable information to the IESO as the IESO may require, in the manner and form specified by the IESO. 2014, c. 7, Sched. 23, s. 5. Conflict with Electricity Act, 1998 (8) In the event of a conflict between a licence condition referred to in sub-subclause (2) (d) (ii.1) (A) and anything in section 31 of the Electricity Act, 1998, the licence condition prevails. 2017, c. 1, s. 2 (2). Affiliates (9) The licence of a distributor shall specify whether the distributor will comply with section 29 of the Electricity Act, 1998, (a)  directly; (b)  through an affiliate; (c)  through another person with whom the distributor or an affiliate of the distributor has a contract; or (d)  through a combination of methods described in clauses (a), (b) and (c), as specified. 1998, c. 15, Sched. B, s. 70 (9); 2002, c. 1, Sched. B, s. 7. Exception (10) Despite clause (9) (a) and any licence, a distributor shall not comply with section 29 of the Electricity Act, 1998 directly after the date prescribed by regulation. 1998, c. 15, Sched. B, s. 70 (10). Service area of distributor (11) The licence of a distributor shall specify the area in which the distributor is authorized to distribute electricity. 1998, c. 15, Sched. B, s. 70 (11). Non-discriminatory access (12) If a transmitter or distributor is exempt from the requirement to provide non-discriminatory access to its transmission or distribution system in Ontario by regulation made under the Electricity Act, 1998, a licence under this Part shall not include a condition requiring the provision of non-discriminatory access unless the licensee has consented to the condition. 1998, c. 15, Sched. B, s. 70 (12). Limitation (13) A licence under this Part shall not require a person to dispose of assets or to undertake a significant corporate reorganization. 1998, c. 15, Sched. B, s. 70 (13). Exclusion (14) Despite subsection (13), a licence under this Part may require a distributor to establish an affiliate through which it shall comply with subsection (9). 1998, c. 15, Sched. B, s. 70 (14); 2015, c. 29, s. 12 (2). Scope (15) This section applies to the exercise of any power under this Act or the Electricity Act, 1998
in relation to a licence referred to in section 57. 1998, c. 15, Sched. B, s. 70 (15). Section Amendments with date in force (d/m/y) 2002, c. 1, Sched. B, s. 7 - 27/06/2002; 2002, c. 23, s. 4 (8) - 30/11/2003 2003, c. 3, s. 47 (1, 2) - 01/08/2003 2004, c. 23, Sched. B, s. 11 (1, 2, 4, 5) - 01/01/2005; 2004, c. 23, Sched. B, s. 11 (3) - 20/12/2004 2009, c. 12, Sched. D, s. 10 - 09/09/2009 2010, c. 8, s. 38 (10, 11) - 01/01/2011; 2010, c. 26, Sched. 13, s. 17 (2) - 01/01/2011 2014, c. 7, Sched. 23, s. 5 - 01/01/2015 2015, c. 29, s. 12 (1, 2) - 04/03/2016 2016, c. 10, Sched. 2, s. 15 - 01/07/2016; 2016, c. 19, s. 17 (2) - 01/01/2017 2017, c. 1, s. 2 - 22/02/2017; 2017, c. 16, Sched. 1, s. 44 (1, 2) - 01/06/2017; 2017, c. 34, Sched. 31, s. 1 - 14/12/2017 2019, c. 6, Sched. 3, s. 12 (1, 2) - 01/11/2019 2020, c. 34, Sched. 14, s. 2 - 08/12/2020 2021, c. 25, Sched. 19, s. 1 - 03/06/2021