In Ontario, some energy companies require a licence from the Ontario Energy Board in order to operate.
What types of energy companies require a licence?
Most participants in the electricity sector require a licence, including: generators, transmitters, distribution utilities, wholesalers, retailers and unit sub-meter providers. We also license the Independent Electricity System Operator and the Smart Metering Entity. In the natural gas sector, we license natural gas marketers (also known as energy retailers).
Why do energy companies need a licence?
Licences are important to protecting energy consumers. A licence provides energy companies with permission to operate in Ontario, and outlines the laws, rules and regulatory requirements they must follow.
Licensing and compliance
If we find that an energy company has broken the rules, we can require it to comply with the rules or apply penalties. We can even take their licence away. We always give licensed energy companies a chance to present their side of the story before we make our final decision.
For information about what generators, transmitters, distributors and other energy companies do, see Ontario’s energy sector.