Right now, a major heat wave is building across North America. Meteorologists are tracking what could become one of the most significant heat events in recent memory, with dangerous temperature and humidity combinations forecast for large portions of the continent through the Fourth of July week and potentially beyond.
For business owners in Ontario, that is not just a weather story. It is an energy story.
Heat and Energy Prices Move Together
When temperatures climb, so does the demand for air conditioning. When air conditioning demand spikes across millions of homes and businesses at the same time, electricity grids strain to keep up. That strain pushes electricity prices higher.
Natural gas often moves in the same direction. Gas-fired generation is frequently what utilities and grid operators lean on when demand peaks. More demand for gas-fired generation means upward pressure on natural gas prices, and in Ontario, electricity and natural gas pricing are linked in ways that compound the effect.
Europe has already lived through extended heat events that stressed grids and pushed energy prices to levels that surprised even seasoned operators. There is no guarantee that what is building right now will follow the same trajectory, but business owners would be unwise to assume it will not.
Every Business Feels This Differently
No two businesses respond to a heat event the same way.
A restaurant running a full kitchen, walk-in coolers, and dining room air conditioning through a sustained heat wave operates under completely different energy pressures than a property management company keeping common areas comfortable across multiple buildings.
A farm managing irrigation and ventilation through record temperatures has different exposure than an auto dealership keeping a showroom cool or a manufacturing facility maintaining precise production-floor conditions.
The point is not that heat is bad for all businesses equally. The point is that how your business uses energy, when you use it, and how much you depend on it to keep operations running, all of that is unique to you. And yet most Ontario businesses are sitting on default utility contracts that were not designed with any of that in mind.
Can Ontario Businesses Choose Their Own Electricity or Natural Gas Supplier?
Yes. Ontario has an open energy market, which means commercial businesses are not required to buy electricity or natural gas through their local utility at the default rate. The Ontario Energy Board (OEB) licenses independent energy retailers who are authorized to offer commercial clients custom electricity and natural gas contracts as an alternative to the utility default.
Most business owners are not aware this option exists. The default utility relationship is the path of least resistance, so most businesses stay on it without ever asking whether something more tailored to their operation might be available.
What Is a Licensed Energy Retailer in Ontario?
A licensed energy retailer is a company authorized by the Ontario Energy Board to sell electricity and natural gas contracts to consumers and businesses outside of the default utility structure. The OEB issues and regulates these licences, which means any legitimate retailer operates under a defined regulatory framework with consumer protections in place.
Ontario has a complicated history with energy retailers. High-pressure sales tactics and poorly structured contracts gave the industry a difficult reputation in earlier decades. It is exactly why the OEB licence matters, and why prospective clients should verify a retailer’s credentials before signing anything.
What Makes a Boutique Energy Retailer Different?
Ontario Wholesale Energy is a boutique licensed energy retailer. The distinction matters because it describes how we work, not just who we are.
A large utility or a volume-focused energy retailer builds rate structures designed for broad consumption patterns across many customers. A boutique retailer builds contracts around a specific business, its actual load profile, its operating hours, its peak demand patterns, and the conditions under which it runs. The contract is designed to align with how that business operates, not with how the average commercial account uses energy.
Ontario Wholesale Energy is backed by Shell Energy North America and holds a full OEB licence. We served over 45,000 business accounts across a range of industries.
Which Ontario Businesses Can Use a Custom Energy Contract?
If your business uses energy, we can likely help you. Ontario Wholesale Energy works with commercial clients across a wide range of industries, including restaurants, manufacturing operations, farms and agricultural businesses, property management companies, automotive businesses and dealerships, retail and grocery operations, wineries, warehousing and light industrial facilities, boutique retail, and multi-family residential buildings.
Each of these industries has a distinct energy profile and distinct exposure to market conditions like summer heat events. That is why a custom contract approach exists.
A Conversation Worth Having
Heat waves do not last forever, and energy markets eventually settle. But they are a useful reminder that default utility contracts are built for the grid, not for your business. If you have never looked at whether a custom electricity or natural gas contract might be a better fit for how your operation runs, this is a reasonable moment to ask that question.
Frequently Asked Questions
Do Ontario businesses have to buy electricity from their local utility?
No. Ontario’s open energy market allows commercial businesses to purchase electricity and natural gas through a licensed energy retailer instead of accepting the default utility rate. The local utility still delivers the energy through its infrastructure, but the contract and pricing can come from a licensed retailer.
What is the Ontario Energy Board and why does it matter?
The Ontario Energy Board is the provincial regulator for electricity and natural gas in Ontario. It licenses energy retailers, sets consumer protection rules, and oversees how energy is sold and delivered in the province. A retailer holding a current OEB licence is operating under that regulatory framework, which is the baseline credential any business should verify before signing an energy contract.
How is a custom energy contract different from a utility default rate?
A utility default rate is a standardized pricing structure applied broadly across the utility’s customer base. It is not built around any individual business’s load profile or operating pattern. A custom contract from a licensed retailer is structured around how a specific business uses energy, including when its demand peaks, what its consumption looks like across different seasons, and how events like summer heat waves affect its operations.
Is Ontario Wholesale Energy a legitimate energy retailer?
Yes. Ontario Wholesale Energy holds a current licence issued by the Ontario Energy Board and is backed by Shell Energy North America. Both credentials are verifiable. OWE currently serves over 45,000 business accounts across multiple industries and operates under the OEB’s consumer protection framework.
Does a heat wave affect natural gas prices in Ontario?
It can. During sustained heat events, electricity grids rely more heavily on gas-fired generation to meet peak cooling demand. That increased demand for gas-fired generation puts upward pressure on natural gas prices. In Ontario, where both electricity and natural gas are consumed commercially across a wide range of business types, a significant heat wave can affect both markets simultaneously.
Could a custom energy contract work for your business? Call an Energy Advisor today at 1.844.604.7283 or fill out this form.
