Ontario Energy Board Announces New Summer Electricity Prices

Represents an Increase of $3.13 per Month for Average Residential Customer 

The Ontario Energy Board (OEB) has released the electricity commodity prices that will take effect from May 1, 2016 to October 31, 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.*

Consumers on time-of-use (TOU) pricing

TOU prices beginning May 1, 2016 will be:

  • Off-peak price (from 7 pm to 7 am on weekdays and all day weekends and holidays): 8.7 cents per kWh (increase from 8.3 cents per kWh)
  • Mid-peak price (from 7 am to 11 am and from 5 pm to 7 pm on weekdays): 13.2 cents per kWh (increase from 12.8 cents per kWh)
  • On-peak price (from 11 am to 5 pm on weekdays): 18.0 cents per kWh (increase from 17.5 cents per kWh)

For consumers currently on TOU pricing, this represents an increase of approximately 2.5 per cent (or $3.13) on the total bill per month, based on an average consumption of 750 kWh. The OEB also announced that because of a decline in household consumption, the OEB will now be using 750 kWh instead of 800 kWh to represent a typical household’s monthly consumption for comparison purposes.

(Be aware that the mid-peak and on-peak time designations change with the seasons, between summer and winter periods. i.e. on-peak pricing in summer occurs from 11 am to 5 pm)

Approximately 97 per cent of residential and small business customers in Ontario are on TOU billing.  

Average bill comparison between May 2015 and May 2016

A comparison of TOU rates between May 2015 and May 2016 is shown below.

  • Off-peak price: increase from 8.0 to 8.7 cents/kWh (8.75 per cent)
  • Mid-peak price: increase from 12.2 to 13.2 cents/kWh (8.2 per cent)
  • On-peak price: increase from 16.1 to 18.0 cents/kWh (11.8 per cent)

For more information:

Ontario Energy Board News Release

Backgrounder – May 1st electricity price change

*Burlington Hydro’s distribution charges account for approximately 17% 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).