Comparing Prices

We are working hard to keep electricity prices as low as possible but there are many challenges. PEI typically has higher electricity prices than the rest of Canada. Here’s why…

Comparison with Nova Scotia & New Brunswick

Nova Scotia and New Brunswick have their own natural resources (such as hydro, coal and natural gas) or nuclear generation sources. The portion of PEI electricity supply Maritime Electric purchases from the commodity wholesale marketplace is higher on a percentage basis for PEI than our neighbouring Maritime Provinces and therefore PEI is impacted to a much greater extent by commodity market volatility.

Country-Wide Electricity Price Comparison
Canadian Provinces' Primary Fuel Source Electrical Generation (April 1, 2008) Scan map to see primary fuel source and average residential cost per kWh * This map is for illustrative purposes only.
		Legend Hydro Nuclear Coal Oil Natural Gas Other
* Average Residential Customer, monthly consumption, 1st 1000 kWh, in ¢/kWh More about this map
Primary Fuel Source: National Energy Board, The Canadian Industry, Figure 1 - Canada Generation by Fuel –2005 Prices: Province Major City Price Source: Comparison of Electricity Prices in Major North American Cities Rates effective April 1, 2009 Territory Major location Price Source:Nunavut and NWT

You’ll notice that the lowest electricity prices in Canada are in those provinces that have an abundance of hydroelectric generation. Hydro (the use of water) generation produces over 60% of all electricity used in Canada and is generally the most cost effective way to generate electricity. PEI is the only province that has no hydro generation. Other low-cost jurisdictions have large amounts of coal or nuclear energy. PEI's only practical economic electricity source is wind, which is intermittent by nature. As such, we have to purchase a significant amount of electricity from sources off the Island to meet our needs..

While purchasing off-Island electricity is expensive, generating electricity from Maritime Electric’s own generators on-Island is even more expensive. Maritime Electric’s own generators are small, and use heavy fuel oil or diesel as fuel. These facilities produce electricity at a higher price than the price Maritime Electric can purchase electricity for in the wholesale marketplace. The Island-based generators are necessary, however, to ensure electricity supply in the event supply is disrupted from the mainland.

Canada & around the world

Let’s compare some electricity prices in Canada, the United States and around the world. Electricity prices vary around the world and each jurisdiction’s electricity prices are a function of the availability of cost effective resources to generate electricity and the supply and demand issues impacting electricity in the respective marketplaces.

The graph below is meant to be illustrative in nature to demonstrate the variability in electricity prices in Canada and around the world. (Please note sources and the time in which rate data was extracted below.)