Security deposits for business accounts
To help keep distribution rates fair for everyone, we require a security deposit when you open a new business account. This helps protect against the risk of unpaid bills and supports our ability to deliver safe, reliable electricity.
While our charges make up around 25 per cent of your electricity bill, we’re responsible for collecting and paying the full amount, including generation, transmission and regulatory charges. We pay those costs up front, even before we receive payment from customers. That’s why deposits are important: they reduce financial risk and help us manage costs.
How we calculate your deposit
Your deposit is based on your electricity usage:
If you have billing history with us
We’ll calculate your deposit as 2.5 times your average monthly bill, based on 12 consecutive months of usage within the last two years.
If you don’t have billing history with us
We’ll estimate your deposit based on your service size (voltage and amperage) and expected usage.
Paying your deposit
The deposit amount will appear on your Hydro Ottawa bill and must be paid in full. If you need more time to pay, you can contact us to request up to four monthly installments.
Once paid, the deposit charge will be removed from your bill.
Waiving or reducing your deposit
You may be eligible for a waiver or reduction if:
You’ve maintained a good payment history with us
You provide a letter from another Canadian electricity or gas utility confirming a good payment history within the last 24 months.
You authorize a credit check and receive a satisfactory rating (a fee applies, see our Other Charges page for details)
What qualifies as a good payment history:
Three years of good standing for accounts under 50 kilowatts (kW)
Seven years of good standing for accounts 50 kW and above
What we mean by good standing:
Your payment history won’t be considered in good standing if you:
- Receive more than one disconnection notice
- Have more than one NSF (non-sufficient funds) payment
- Miss more than one pre-authorized payment
- Are disconnected for non-payment
- Require collection for overdue charges
Annual review and refund process
We review all security deposits annually. If your usage or payment history changes, your deposit may be adjusted or partially refunded (with interest).
We typically hold deposits for:
- Three years for accounts under 50 kW
- Seven years for accounts 50 kW and above
Accounts with demand over 5,000 kW may be eligible for a 50 per cent refund after seven years of good payment history. The remainder is refunded when the account is closed.
We calculate interest monthly and credit it to your account at least once per year. The interest rate is based on the Bank of Canada’s prime business rate minus two per cent.
