What is the Cost of Energy?

Overview

Very often it helps to know what conventional energy actually costs us per unit of energy. In Canada, electricity is sold through regulated bodies and does not vary in price, but natural gas, propane, heating oil, gasoline, diesel fuel and other forms of fossil fuels vary more depending upon the current market price.

Many Canadians might be surprised to realize how cheap our energy costs are compared most of to the rest of the world, and how those low prices (as well as our relative wealth) have influenced our lifestyles. Suburbs, high-powered and large cars, general lack of public transit, poorly-insulated homes and love of travel are all recent phenomena which are directly related to the low price of fossil fuels. In societies which more and more accept the need to limit the production of greenhouse gases, it is reasonable to expect that the cost of all forms of energy will rise over the next years.

Cost Comparisons

These are prices in the Ontario marketplace, as of the date and place in the footnotes.

Energy Type Units Marginal Cost per Unit1) Cost per GJ2) Cost per kWh 3) Cost per GJ (DHW)4) Cost per kWh (DHW)5)
Electricity6) kWh $0.105 $29.17 $0.105 $30.057) $0.1088)
Natural Gas9) $0.2637 $6.89 $0.025 $8.6210) $0.03111)
Natural Gas12) $0.2637 $6.89 $0.025 $9.8513) $0.03514)
Propane15) L $0.599 $23.67 $0.085 $29.5816) $0.10617)

See Also

1) This is the cost of buying one more or one fewer unit of energy, ignoring any fixed account fees and taxes, but including all variable costs, including transport, distribution, storage and transmission losses.
2) A gigajoule (GJ) is a common international unit of energy.
3) A kilowatt-hour (kWh) is a unit energy that is often applied to electricity.
4) , 5) Taking into account any losses when making hot water; the efficiency of each type of energy is indicated in its row.
6) Kingston, Hydro One, Nov/09
7) , 8) at 97% average efficiency
9) , 12) Kingston, Union Gas, Oct/09
10) , 11) , 16) , 17) at 80% average efficiency
13) , 14) at 70% average efficiency
15) Toronto, Weekly Pump Survey, Dec 1/09

general_information/energy_costs.txt · Last modified: 2010/03/23 13:08 by Pierre Nadeau