Electricity Prices Dropping for Households and Small Businesses Effective May 1

TORONTO, April 20, 2017 /CNW/ - The Ontario Energy Board (OEB) today announced that households and small businesses that buy their electricity from their local utility will see their electricity prices go down starting May 1.  This will benefit more than 90% of the electricity customers in Ontario.

Every six months, the OEB estimates how much it will cost to supply electricity to residential and small business customers on the Regulated Price Plan (RPP), and sets prices to recover these costs over time.

Starting in May 2017, the total bill for a typical residential customer who uses 750 kWh per month will be about $127, which is about $26 or 17% lower than it would have been without the following rate mitigation:   

  • the 8% rebate, equivalent to the provincial portion of the HST, that has been in place since January 1, 2017;

  • the OEB's decision to remove the charge that funds the cost of the Ontario Electricity Support Program (OESP), effective May 1, 2017.  The OESP will continue to be available to help eligible low-income customers reduce their electricity bills; and
      
  • a portion of the bill reduction announced in the government's proposed Ontario Fair Hydro Plan.

The table below shows three sets of prices:  the existing time-of-use (TOU) prices for RPP customers; what those TOU prices would have been on May 1, 2017 without consideration of the proposed Fair Hydro Plan; and the TOU prices as set by the OEB to start on May 1, 2017, which take into account a portion of the bill reduction announced in the proposed Fair Hydro Plan.

TOU Price Periods

Existing TOU Prices

Forecast TOU
Prices without
consideration of the
proposed Fair
Hydro Plan

May 1, 2017 TOU
Prices including a
portion of the
proposed Fair
Hydro Plan

Off-Peak

8.7¢/kWh

9.1¢/kWh

7.7 ¢/kWh

Mid-Peak

13.2 ¢/kWh

13.3 ¢/kWh

11.3 ¢/kWh

On-Peak

18.0 ¢/kWh

18.5 ¢/kWh

15.7 ¢/kWh

 

The table below shows the same sets of prices for RPP customers who pay tiered prices.

Price Tiers

Existing Tiered
Prices

Forecast Tiered
Prices without
consideration of the
proposed Fair Hydro
Plan

May 1, 2017
Tiered Prices
including a portion
of the proposed
Fair Hydro Plan 

Tier 1

10.3 ¢/kWh

10.7 ¢/kWh

9.1 ¢/kWh

Tier 2

12.1 ¢/kWh

12.5 ¢/kWh

10.6 ¢/kWh

 

The government has indicated that it intends to introduce legislation that, if passed, would implement the proposed Fair Hydro Plan starting this summer. The OEB will then further adjust RPP prices as needed so that RPP customers receive the full rate relief as legislated.   

For more information on how the OEB established the TOU and tiered RPP prices that come into effect on May 1, see the OEB Backgrounder.

About the Ontario Energy Board

The Ontario Energy Board is an independent and impartial public agency that makes decisions that serve the public interest. Our goal is to promote a sustainable and efficient energy sector that provides reliable energy services to customers at a reasonable cost. 

SOURCE Ontario Energy Board

For further information: Media Inquiries, 416-544-5171; Public Inquiries, 416-314-2455, 1-877-632-2727

RELATED LINKS
ontarioenergyboard.ca

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