Why is the delivery charge for seasonal Hydro One customers double that of residential owners?
Every Hydro One customer pays the same amount for the electricity they use. However, the cost of delivering that electricity to the cottage is comprised of a fixed delivery charge and a fluctuating volume charge. Hydro One divides non-industrial customers into four different classes—residential, seasonal, small business, and farm—and charges vary between them. Within classes are further divisions, so seasonal customers, for instance, are split according to the costs associated with servicing them.
Hydro One and other provincial agencies who regulate the electricity and natural gas industries, reason that the cost of delivering electricity to some customers is more expensive (they have farther to go for maintenance, service calls, and the like) and say those customers should bear the expense.