Audit and performance assessment

The Audit and Performance Assessment Department of the Ontario Energy Board performs audits and assesses performance of regulated entities. This includes audit and assessment of utility performance scorecard data and analysis of performance trends to assist the Board’s decision makers.

Audit

Audit performs sector reviews, entity-specific reviews, and entity-specific audits. Audit conducts audits of regulated entities including financial audits, compliance audits, operational audits, financial viability audits, and audits of RRR information filed with the Board.

Audit ensures that the data collected from regulated entities is reliable for decision making and supports the Board's decision making process with respect to financial and non-financial information.

The role of Audit is to assist the Board in carrying out its legislative mandate including the oversight of the province’s electricity and natural gas sectors. In addition, the work of Audit supports and informs the work of Applications, Consumer Services, Industry Operations & Performance, and Legal Services & Strategic Policy divisions of the Board.

The main responsibilities of the Audit are grouped in the following key areas.

1. Assessing Financial Viability

One of the Board’s legislative objectives under the Ontario Energy Board Act, 1998 is to facilitate the maintenance of a financially viable gas and electricity industries. Audit monitors the financial viability of the electricity and gas sectors in Ontario. This is done by analyzing, assessing and interpreting both financial and other performance information provided to the Board. Information is provided by a number of sources including: regulated entities, consumers and stakeholders. The results of this assessment are used to inform the planning of audit work.

2. Audit and Review Engagements

Audit uses the annual audit plan as the basis for audit and review work undertaken by audit staff or by third party auditors retained by the Board. Professional audit standards are used when performing audit and review engagements. The scope of work is typically built to focus on matters of quality and reliability of reported information, financial and non-financial performance of an entity and/or compliance with the Board's legislative and regulatory requirements.

3. Reporting the Results of Audit and Review Engagements

The results of individual engagements are shared in draft, for confirmation of factual accuracy, with the audited entity. The auditor's views are finalized and, where applicable, the report is provided to management of the audited entity for formal response and inclusion of an action plan developed by the entity. The findings of the audits and reviews are reported to the Board and may also ultimately be used as evidence in a future proceeding before the Board. Where findings are of a compliance nature, they are referred to the Board.

Performance Assessment

Performance Assessment uses financial and non-financial information filed by regulated entities through the e-Filing Services. Performance Assessment assesses the performance of regulated entities including utility performance scorecard data and analysis of performance trends of information filed with the Board’s Reporting & Record-keeping Requirements (RRR) to assist the Board’s decision makers.

Distributor Scorecard

The electricity distributor scorecards measure how well Ontario's electricity distributors are performing each year. It is designed to encourage electricity distributors to operate effectively, continually seek ways to improve productivity and focus on improvements that their customers value.

Public Safety Measure - Updates

Date

Issue/document

Nov 25 - 15

The OEB has issued a letter regarding Public Awareness of Electrical Safety Measure.

Aug 4 - 15

The OEB is publishing the results of the electricity distributors’ 2010-2014 public safety measure (Components B and C of the public safety scorecard measure) received from the Electrical Safety Authority (ESA). A 'Public Safety Scorecard – The ESA Instructional Document' is also published which provides additional detail.

May 13-15

The OEB has issued a letter regarding the implementation of a public safety measure for the 2014 Scorecard. The OEB is amending section 2.1.19 (d) of the Electricity Reporting & Record Keeping Requirements (RRR) to include the definitions for the public safety measure and performance targets.

 

Total cost benchmarking – updates

Date

Issue/document

Aug 4 - 16

The OEB has posted the PEG Report to the Ontario Energy Board "Empirical Research in Support of Incentive Rate-Setting: 2015 Benchmarking Update" for the electricity distributors’ 2016 stretch factor assignments in rates.

Jul 30-15

The OEB has posted the PEG Report to the Ontario Energy Board "Empirical Research in Support of Incentive Rate-Setting: 2014 Benchmarking Update”.

May 22-15

The OEB has posted the Benchmarking Training Presentation prepared by Pacific Economics Group for the training session on May 25 in relation to the enhanced benchmarking Spreadsheet Model and User’s Guide for electricity distributors issued by the OEB on May 7. The agenda for the training session is also provided.

Please note that no paper copies of the presentation or other materials (i.e., Spreadsheet Model and User’s Guide posted on the OEB’s website) will made available to those who will be attending the training onsite at the OEB on May 25.

May 13-15

The OEB has issued a letter regarding the implementation of a public safety measure for the 2014 Scorecard. The OEB is amending section 2.1.19 (d) of the Electricity Reporting & Record Keeping Requirements (RRR) to include the definitions for the public safety measure and performance targets.

May 7-15

The OEB has published an enhanced benchmarking Spreadsheet Model and a User’s Guide for electricity distributors in relation to the implementation of improvement initiatives for the 2014 Electricity Distributor Scorecard.

These documents will be the subject of the OEB’s benchmarking webinar on May 11, 2015 and a training session on May 25, 2015 as indicated by the OEB’s letter of May 4, 2015 to electricity distributors.

May 4 - 15

The OEB has announced a Benchmarking Webinar (May 11) and a Training Session (May 25) in support of improvement initiatives for the 2014 Electricity Distributor Scorecard.

Aug 27 - 14

The electricity distributors’ final 2013 scorecards are now accessible for review and sign off in e-Filing Services of the Board website. In addition, Board staff has prepared relevant questions and answers to assist distributors with their review and sign off of the scorecard.

Aug 14 - 14

The OEB has posted the PEG Report to the Board "Empirical Research in Support of Incentive Rate-Setting: 2013 Benchmarking Update”.

 

Billing accuracy – updates

Date

Issue/document

Jul 17 - 14

The OEB has issued a billing accuracy scorecard measure for all licensed electricity distributors, as well as a performance target for the new measure to be effective on October 1, 2014. The first reporting period of the measure (October to December 2014) will be due on April 30, 2015.