New Distribution Rates Come Into Effect May 1, 2018

Burlington Hydro’s distribution rates will increase slightly as of May 1, 2018. The Ontario Energy Board (OEB) has approved a 1.05% rate increase.  

Burlington Hydro’s distribution charges account for approximately 24% of a typical residential customer’s electricity bill and are included in the “Delivery” line item on the bill. Delivery charges include:

  • Customer Service Charge: A fixed charge for costs related to meter reading, billing, customer service and account maintenance, and for general utility operations.
  • Distribution Charge: A variable charge for the cost of building and maintaining the distribution system, including overhead and underground power lines, poles and transformer stations. Utilities file detailed rate applications with the Ontario Energy Board if they want to change this charge. By 2019, for most customers the distribution charge will be a fully fixed charge.
  • Line Loss Adjustment: It is normal for a small amount of power to be lost as it travels over the utility's power lines to your home or business. In calculating your electricity costs for the billing period, your utility multiplies your electricity cost by an adjustment factor that accounts for those losses. They do this using an adjustment factor that is approved by the Ontario Energy Board. The charges for losses are included on the Delivery line of your bill.
  • Transmission Charge (representing approximately 10% of the total bill): A variable charge for the costs of transmitters to operate and maintain the high-voltage transmission system that carries electricity from generating stations to your utility.

Find out more about understanding your electricity bill on the Ontario Energy Board website.

There are other charges that will also increase on May 1st. Taken together, residential customers using an average of 750 kWh/month will experience a bill increase of $2.18/month or 2.05%. This is a result of:

  • an increase in the distribution rate of 1.05%,
  • an increase in Hydro One transmission costs (also a part of the ‘Delivery’ line item), and,
  • variances in the cost of electricity charged to customers and paid to the Independent Electricity System Operation (IESO) by Burlington Hydro

The Ontario Energy Board (OEB) has already announced new electricity prices for the summer period that begins May 1, 2018. The new time-of-use (TOU) prices are for residential and small business customers under the Regulated Price Plan (RPP) and who buy their electricity from their utility. These charges are shown on the ‘Electricity’ line of a customer’s bill.

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