The Ontario Energy Board (OEB) 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.
Click here to read the full press release.