Can We Cut Our Hydro Costs and Save a Few Bucks?

Can you cut hydro costs

There are some debts that we can avoid and then there are some that we simply cannot. Like our utility bills, for example.

A lot of people are mortified by the cost of their hydro and so many have made real efforts to trying to cut this unavoidable cost down. They began to practice teaching everyone in the household to turn off lights and electronics when not in use. They became innovative with using hydro at low peak times so they could glean a little saving. With all the efforts that the average family household implemented such as this does it make any significant difference?

With our busy lifestyles as a rule when the hydro bill comes in we look at the, pay this line, grumble a little, then make the payment.

Let’s take a closer look at an average hydro bill. Based on a two adult home of about 1,000 sq. feet. Of course the time of year makes a difference in hydro consumption.

When you are looking at attempting to save a few dollars on this bill you want to look at first how much hydro did you really use?

In our example based on the coldest month of the year which would have been Feb. of this year, the actual amount of energy used was $158.

Now the total bill to be paid was $316. So where did the other $158. Come from?

Your delivery cost:

Somebody has to make sure the hydro arrives to your home in an efficient manner so this is going to cost you, and how much is shown under your delivery costs on your bill. In our example here the cost was $131.

What you might not know is the charge is based on the location that the energy is being delivered to. It will differ from residential, to seasonal, to farm to small business.

Then it gets broken down even further. If you are being charged residential, you are put into one of three density categories.

Urban high density is where there are 3,000 or more customers and there are at least 60 customers for every km. of power line used.

Medium density is where there are 100 or more customers, and there are at least 15 customers for every km. of power line used

Low density is those that do not fit into the urban or medium density.

If you are really one of those detailed persons, when it comes to money then you would definitely be interested in knowing which living area is going to give you the cheaper delivery rate. There are several factors that would need to be considered when analyzing this, but would it be worth the effort? And how much would it save you? If you have some spare time and are thinking of moving, then it would make for an interesting project to see what the outcome would be.

Continuing on with our example, the balance of the bill relates to the debt retirement charge, which is supposed to be eliminated in 2016, which in this case amounted to $11.62. Then there was the HST which amounted to $40.50.

So the only real control you have over cutting your hydro back is the actual amount of usage. As mentioned, many families are making efforts to do this. These efforts could be extended a little further if a money saving orientated family were to take a look at the times they used their hydro.

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Sam Seidman, CPA, CA, LPA
629 Sheppard Avenue West
Toronto, Ontario
M3H 2S3

Telephone: (416) 398-1700
Fax: (416) 398-6226

Chartered Professional Accountant, Chartered Accountant, Licensed Public Accountant


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