Ontario's energy resources constitute an important international advantage for investors. Diversified and secure, almost all of the energy consumed in Ontario is sourced in Canada. With plentiful domestic resources and an efficient energy industry, Ontario has low energy prices compared to most developed nations.

The major sources of electricity generation in Ontario are nuclear, hydroelectric, fossil (coal) and natural gas. Ontario has also committed to increasing the power supply from alternative sources such as wind energy to 10% of total supply by 2010. Ontario’s electric power industry is made up of provincial crown corporations, investor-owned utilities and municipal utilities.

Ontario’s electricity sector has undergone significant restructuring in recent years as government imposed a competitive market framework on an industry that had long been a monopoly in Ontario. Electricity prices are based on the costs of generation, long-distance transmission and local distribution. Consumer rates vary by customer class (i.e., residential, commercial, industrial). Large power users who use more than 250,000 kilowatt-hours of electricity per year are free to negotiate long-term contracts with a retailer for their supply of electricity. For current electricity demand and pricing information in Ontario at the wholesale marketplace, visit the website of The Independent Electricity System Operator (IESO).

The CANDU (Canadian Deuterium Uranium) nuclear reactor was developed by Ontario Hydro and Atomic Energy Canada Limited to provide electricity using natural uranium fuel and heavy water. The two major benefits of this source - low operating costs and none of the emissions that lead to smog, acid rain or global warming, make nuclear power a very attractive option for meeting the province's electricity needs well into the future. Nuclear power currently represents one-third of Ontario's electricity output.

There are three nuclear power plants in Ontario: Pickering Generating Station, Darlington Generating Station and Bruce Nuclear Power Generating Stations.

Natural gas is the major fuel for all sectors of the economy except transportation, and is the primary fuel used in residential, commercial and industrial heating in Ontario. Natural gas also accounts for approximately eight per cent of Ontario’s power generating capacity.

The sale of natural gas was deregulated in Ontario in October 1985. The natural gas market in North America is fully integrated. While the "commodity" prices of natural gas are unregulated and negotiated between buyers and sellers, the local distribution rates are regulated at the provincial level. Gas can be purchased from either a local distribution company or any Ontario Energy Board (OEB) licensed gas marketer or broker.

Crude oil prices are determined by global supply and demand conditions in international markets of which Canada is a price taker. The production policies of the Organization of Petroleum Exporting Countries (OPEC) help determine global supply availability and these policies have an important influence on world oil prices. Oil is refined in Ontario refineries and provides most of the energy used for transportation and the petrochemical industry. Gasoline prices are affected by the changes in crude oil prices, local market conditions, inventory levels, and government taxes.

Please visit the website of the Ontario Ministry of Energy for published data on fuel price surveys on various grades of gasoline, diesel, auto propane and compressed natural gas in Ontario.

The Ontario Government is committed to protecting the interests of Ontarians by ensuring a reliable, sustainable and diverse supply of competitively priced power for the province, while promoting energy conservation. Information on the government incentives and projects in the development of renewable energy sources such as wind, solar, hydroelectric, hydrogen and biomass is available at the Ontario Ministry of Energy’s website at http://www.energy.gov.on.ca.