Locating your dream apartment in a great area in Toronto can be an overwhelming errand because of the plethora of ideal options available at the tip of your fingers. It might feel like searching for a needle in a haystack.
While rummaging through heaps of options, figuring out the average cost of utilities is the last thing that should be on your mind. To make things easier for you, in this article, we have answered the most frequently asked question, “What is the average cost of utilities in Toronto?”
Let us walk you through the nitty-gritty of the utilization cost in Toronto.
What Qualifies as a Utility?
Before delving into the details, it’s worth exploring what falls under the utility category.
Utilities are services connected to your house that allow you to utilize specific appliances and amenities. Water, electricity, petrol, internet, cable TV, and telephone service are some examples of utilities.
How Much Does Average Monthly Utility Cost in Toronto?
Toronto is a big city, accommodating hundreds and thousands of people. The cost of living in Toronto depends upon many factors, such as the area of the house, the type of utilities being used, the use patterns of the household, the number of people living together, and the individual utility supplier.
Though the typical monthly utility expenses differ for each household, here is a rough approximation of it in Toronto:
For electricity, you would be spending around $70-$100 each month. The monthly cost of natural gas can fall somewhere between $70-$100. As per your use and season, the water supply can roughly cost $50-$60. Moreover, the internet and cable charges will also be counted as utilities. The average monthly cost of internet and cable TV in Toronto is estimated to be around $100-$150. Lastly, mobile phone rates depend on the carrier as well as the plan. An approximate monthly bill for a mobile phone can range from $50-$70.
Why is there a Surge in Toronto’s Utility Prices?
With Economic war raging all around the globe, it’s not a surprise that Toronto’s cost of living is also experiencing a hike. Utility rates in Toronto may be increasing for a variety of reasons. Some of those reasons are listed down below:
Increased demand:
Toronto is one of the fastest-growing cities in North America, with a growing population and economy. As a result, the demand for utilities such as electricity, gas, and water is increasing, leading to higher prices.
Aging infrastructure:
Much of the utility infrastructure in Toronto is aging and needs repair or replacement. Unfortunately, maintaining and upgrading this infrastructure is passed on to consumers through higher utility prices.
Changes at State-level:
Frequent changes in rules and policies provided by government can highly impact the cost of utility generation. In Ontario, for instance, the government has introduced a new pricing scheme for carbon to reduce emissions of greenhouse gasses. This has ultimately caused rise in the cost of natural gas and electricity.
Rising energy costs:
Energy prices, especially natural gas and electricity, can vary owing to supply and demand fluctuations, political uncertainty, and meteorological occurrences. These price changes might be passed on to customers through increased utility bills.
Pandemic-related impacts:
The COVID-19 pandemic has impacted utility prices, as some customers may have experienced difficulties paying their bills. Utility companies may have had to implement measures to offset these losses, such as rate increases.
How are Utility Bills in Toronto Calculated?
There is no exact formula or equation through which utility bills are calculated. However, some details regarding the calculation of utility bills in Toronto are provided to give you a rough idea of how things work here.
The price of electricity is determined by the number of kilowatt-hours (kWh) consumed during the billing month. The local power supplier, Toronto Hydro, charges a variable cost per kWh determined by the Ontario Energy Board that changes based on the time of day and season. Moreover, water costs are based on a tiered rate system, with users paying a greater charge for each extra cubic meter of water consumed.
Following that, the cost of natural gas is determined by the number of cubic meters consumed throughout the billing month. The local gas distributor, Enbridge Gas, imposes a variable fee per cubic meter determined by the Ontario Energy Board and changes based on market pricing. Additionally, garbage collection costs are normally included in property taxes; however some properties may be taxed individually. The price is dependent on the quantity and frequency of waste and recyclables collections.
Wrap Up
Please keep in mind that the figures provided in this article are intended to offer a basic idea of the average utility expenditures in Toronto and may vary based on your unique situation.
It is always a good idea to check with your utility providers and compare plans to find the best household rates and get more accurate pricing information. We hope that this quick rundown was helpful to you.
