Ontario Energy Board Releases New Electricity Commodity Prices (November 1, 2015 to April 30, 2016)

Impact for Time-of-Use Customers is a 3.4%/Month Electricity Bill Increase

The Ontario Energy Board (OEB) has released the winter electricity commodity prices for the time period that covers November 1, 2015 to April 30, 2016 under the Regulated Price Plan (RPP). These prices apply to the majority of residential and small business customers in Ontario who do not buy electricity under a retail electricity contract.*
New Winter Time of Use (TOU) Pricing (Nov 1 to April 30)

 Off-peak Price
(7 pm to 7 am, weekdays, all day on weekends & holidays)

 8.3 cents per kWh

  Mid-peak Price
(11 am to 5 pm on weekdays)

 12.8 cents per kWh

 On-peak Price
(7 am to 11 am and 5 pm to 7 pm on weekdays)

 17.5 cents per kWh

For those consumers on TOU pricing, the increase is approximately 3.4 per cent on the total bill per month, or $4.42 per month based on an average consumption of 800 kWh. Approximately 97 per cent of residential and small business customers are on TOU billing.  

The OEB explains that about 40% of the increase is due to the increased costs from Ontario Power Generation’s (OPG) nuclear and hydroelectric power plants. The cost of renewable generation and the recovery of past costs incurred by OPG are other contributing factors to the price increase.

For more information:

Ontario Energy Board News Release

Backgrounder – November 1st electricity price change

*Burlington Hydro’s distribution charges account for approximately 22% of a customer’s electricity bill. The charge is included as part of the “Delivery” line item on the bill, which also includes transmission (accounting for approximately 8% of a customer’s electricity bill). Many consumers are not aware that distributors are the billing agent for Ontario’s electricity system and that they collect on behalf of all other electricity market participants and the government.

The Ontario Energy Board (OEB) sets the province’s prices for electricity under the Regulated Price Plan (RPP) and develops the daily and seasonal TOU periods. With TOU pricing electricity prices vary, based on when it is used. That includes by time of day, by day of week (weekdays versus weekends), and by season (winter or summer).