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What Is a Distributor?

Local electricity utilities are commonly known as local distribution companies (LDCs). They typically take power from high-voltage transmission lines, “step-down” the electricity to a lower voltage level (50 kV and under), and provide it to local customers of all sorts: homes, businesses, institutions and industry.


Distributors are:


  • Essential service providers who connect new homes and businesses to electricity supply, maintain their community’s network of power lines and restore them after storms.
  • A vital piece of any electricity system, and a key player in the economic development and wellbeing of Ontario. As cities and industries expand, distributors expand with them to facilitate their growth.
  • Businesses focused on the reliable and safe delivery of electricity. Electricity that is not provided at an appropriate voltage can damage machinery, impair digital devices and, in the case of a surge in voltage, cause catastrophic damage to computer systems.
  • Committed to electricity conservation, creating and implementing conservation programs across the province that save consumers money, protect the environment, and help address Ontario's energy supply challenge.
  • Both publicly and privately owned. They are regulated monopolies in their respective communities and service areas. The government, through the Ontario Energy Board, regulates the rates that distributors charge customers for the distribution service. 
  • The primary electricity billing agent, dealing directly with residential and business customers.



You can learn more about local distribution companies and the electricity bill by watching this short video: