Bill Calculations and Plan Choices
Equal billing and budget plans for hydro and gas in Canada: how they work and the catch-up
How equal billing, budget billing and equalized payment plans work for Canadian electricity and gas, how the annual reconciliation is calculated and when to adjust.
Equal billing (also called budget billing, an equal payment plan or, at Hydro-Québec, an equalized payments plan) spreads your estimated annual energy cost into equal monthly instalments. You still pay for every kWh or GJ you use at the normal price; the plan only changes when you pay. Once or twice a year the utility compares what you paid with what you actually used and either adjusts your instalment, bills you the difference, or carries a credit forward. It suits homes with large seasonal swings, such as gas or electrically heated houses, but it does not save money, and a cold winter or a price increase can produce a catch-up amount.
This guide is part of comparing plans with worked examples.
Who offers it
Equal or budget payment options are widely available:
| Utility type | Common name | Where to check |
|---|---|---|
| Ontario electricity distributors | Equal billing or equal payment plan | Your distributor's website; Ontario rules require distributors to offer an equal billing option to residential customers |
| Enbridge Gas (Ontario) | Budget billing plan | enbridgegas.com |
| BC Hydro | Equal payment plan | bchydro.com |
| FortisBC | Equal payment plan | fortisbc.com |
| Alberta retailers | Budget or equal billing (varies by retailer) | Your retailer's terms |
| Hydro-Québec | Equalized payments plan | hydroquebec.com |
Terms differ: some plans reconcile annually, some review every few months, and some require you to be up to date on payments to enrol.
How the instalment is calculated
Utilities estimate your next 12 months of cost from your past usage and current prices, then divide by 12 (or by the number of bills).
Illustrative example, gas-heated house in Ontario:
| Month group | Assumed bills |
|---|---|
| Dec–Mar (4 months) | $210, $240, $225, $180 = $855 |
| Apr–May, Oct–Nov (4 months) | $110, $70, $80, $140 = $400 |
| Jun–Sep (4 months) | $45, $40, $40, $50 = $175 |
| Year total | $1,430 |
Equal instalment = $1,430 ÷ 12 = $119.17 a month. Instead of $240 in January and $40 in July, you pay $119.17 every month.
The reconciliation (true-up)
At the reconciliation date, the utility compares:
- actual charges for the period (real usage × prices in effect), with
- payments made under the plan.
Case 1: colder winter. Actual charges $1,560; paid $1,430. Shortfall $130. Depending on the plan, this is billed in one amount, spread over the next year (raising the instalment by about $10.83), or added to the new estimate.
Case 2: milder year and price cut. Actual charges $1,350; paid $1,430. Credit $80, carried forward or refunded.
Prices still change during the plan
Equal billing does not freeze the rate. Ontario's RPP prices reset on 1 November (from 1 November 2026: TOU 9.1¢ / 14.6¢ / 18.9¢, tiered 11.2¢ / 13.2¢), and gas commodity prices change quarterly or monthly. The Ontario Electricity Rebate fell from 23.5% to 15.7% on the same date. A household whose instalment was set in spring 2026 may therefore find its true-up affected by the 1 November changes. Your bill still shows the actual usage and charges each period, usually with a running balance.
Pros and cons
| Pros | Cons |
|---|---|
| Predictable monthly outflow | No saving; same prices |
| Easier budgeting on fixed incomes | Catch-up amounts can be a shock |
| Reduces winter payment stress | You may prepay in summer (credit sits with the utility) |
| Works with pre-authorized debit | Missing payments can remove you from the plan |
Equal billing vs a fixed-price contract
These are often confused. A fixed-price contract with a retailer changes the price per unit for a term; it can cost more or less than the default. Equal billing keeps the regulated or contract price and only levels the payments. You can combine them, but evaluate each on its own. See fixed-price contracts vs the default rate.
How to set it up well
- Check your last 12 months of bills and total them.
- Adjust for known changes: price resets, new appliances, more people at home.
- Ask the utility how it calculates the instalment and when it reconciles.
- Set a calendar reminder for the reconciliation month.
- If the instalment looks low against your own estimate, ask for a higher amount to avoid a catch-up.
The bill estimator helps you check a typical winter and summer month.
If you are struggling to pay
Equal billing is helpful but is not an arrears arrangement. If you already owe money, ask for a payment arrangement, and check low-income help such as Ontario's OESP and LEAP or provincial programs: see low-income energy bill help and winter disconnection rules.
Related calculations: estimate a monthly electricity bill from kWh helps you check whether the instalment is realistic, and natural gas bills in GJ and m³ shows how seasonal gas use builds up.
FAQ
Does equal billing cost extra?
Generally no fee is charged for equal billing by the utilities listed, but check your provider's terms.
Can I leave an equal billing plan?
Yes, usually at any time; the balance between payments and actual charges is then settled.
Will equal billing protect me from disconnection?
Only if you keep paying the instalments. Missed payments are treated like any unpaid bill.
Is equal billing available with a retailer?
Some retailers offer it; others leave billing to the utility. Ask before you sign.
Sources
- Ontario Energy Board — distributor customer service rules including equal billing
- BC Hydro — equal payment plan
- FortisBC — equal payment plan for gas
- Enbridge Gas — budget billing plan
- Hydro-Québec — equalized payments plan
