Ontario Energy Board Announces Further Decrease to Electricity Prices, beginning July 1st

June 23, 2017

The Ontario Energy Board (OEB) has announced a further decrease to electricity prices, beginning July 1, 2017, as required by the Fair Hydro Act that was passed earlier this month.

For residential and small business customers that buy their electricity from Burlington Hydro, the OEB has set new lower Regulated Price Plan (RPP) electricity prices that build on the reduction in RPP prices that came into effect on May 1. The new RPP prices will apply beginning July 1, 2017.

 TOU Price Periods

TOU Prices that would have been in effect during the 2017 summer period without Fair Hydro Plan reductions

TOU prices reflecting the Fair Hydro Act reductions effective July 1, 2017

 Off-Peak

 9.1 cents/kWh

 6.5 cents/kWh

 Mid-Peak

 13.3 cents/kWh

 9.5 cents/kWh

 On-Peak

 18.5 cents/kWh

 13.2 cents/kWh

The OEB has also set a new credit for customers that are eligible for electricity bill reductions under this legislation, but who are not paying RPP prices. The credit will reduce the Global Adjustment (GA) charges paid by these customers by approximately 3.3 cents/kWh.

The new RPP prices and GA credit will apply to electricity used between July 1, 2017 and April 30, 2018. On May 1, 2018, the OEB will re-set RPP prices and the GA credit in a way that holds increases to the rate of inflation in accordance with the legislation.

Including the 8% rebate on electricity bills that was introduced on January 1, 2017, this will bring the total bill for the average residential customer to approximately $121, or 25% lower than it would have been without legislative mitigation.

Additionally, under the Fair Hydro Act, lower-income Ontarians and those living in eligible rural communities will receive even greater reductions, as much as 40 to 50 per cent. As part of the plan, electricity commodity rate increases for four years will be held to the rate of inflation. 

The legislation will:

  • Enable the Independent Electricity System Operator (IESO) and Ontario Power Generation (OPG) to work together to spread out the costs of Ontario’s clean energy investments over a longer period of time, which ensures that the costs of these investments are allocated fairly among current and future ratepayers. This will be accomplished through refinancing a portion of the Global Adjustment (GA), resulting in significant and immediate rate reductions.
  • Modify the Ontario Electricity Support Program (OESP) to ensure it is funded by government instead of ratepayers, reducing bills for all.

Some Quick Facts:

  • Ontario’s Fair Hydro Act will improve energy sector efficiency and modernize the province’s electricity market, building on the collaboration of the Independent Electricity System Operator (IESO) and the Ontario Energy Board (OEB).
  • In April 2017, the Industrial Conservation Initiative (ICI) was expanded to include electricity consumers in the manufacturing and greenhouse sectors with an average monthly peak demand of greater than 500 kW and less than 1 MW.
  • On May 1, 2017, the OEB reduced electricity rates across the province. The OEB has now updated rates to reflect the full benefit under the Fair Hydro Act – delivering a 25% on average reduction for all households and half a million small business and farms.
  • The province has expanded the OESP, providing 50 per cent more support in the form of monthly credits for people with low incomes and increasing eligibility, effective May 1, 2017.
  • The province is also establishing an Affordability Fund that will be accessible to LDCs for customers who do not qualify for low-income conservation programs and who are unable to undertake energy efficiency improvements without financial assistance.

Learn more from the OEB website

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