Price Credit Backgrounder -
Consumers to Receive Credit on Their Electricity Bills
Oct. 20, 2005
Consumers to Receive Credit on Their Electricity Bills
The McGuinty government is announcing that residential and small business electricity consumers, schools, hospitals and others covered by the government’s regulated price plan will receive a one-time credit on an upcoming electricity bill. A typical credit will be $60 for a consumer in a detached home. Depending on their billing cycle with their local utility, most consumers should see the credit by the end of the year. Local utilities will be providing specific details on the credit to their consumers.
Below is a table indicating sample credit amounts for a variety of consumers. Amounts will vary based on consumption.
| Typical Use |
kWh / Month |
Avg. Credit* |
| Low Use Home |
750 |
$45 |
| Med Use Home |
1000 |
$60 |
| High Use Home |
1500 |
$95 |
| Avg. Sml. Business |
2500 |
$150 |
* Go to www.energy.gov.on.ca for a calculator that will help you
estimate the size of your credit. |
The credit is a result of lower than expected electricity prices in the first year of the regulated price plan (2004/2005) due largely to the moderate weather during the summer of 2004. Between April 1, 2004 and March 31, 2005, $495 million was accumulated in the Electricity Consumer Price Protection Fund. This was a result of the difference between the province’s interim pricing plan and the actual cost of power.
Bill 4, which established the regulated price plan for small and designated consumers, set an initial price for consumers based on forecast electricity costs. This legislation also committed the government to returning any surplus.
The Ontario Energy Board has developed prices based on forecast prices for generation over the next year. These prices will be adjusted after one year, and every six months after that, to ensure the cost charged to consumers reflects the true cost of generating electricity.
For consumer information call 1 888 668 4636
Media Contacts:
Erika Botond
Minister's Office
(416) 327-3546
Ted Gruetzner
Communications Branch
(416) 327-4334
