Ontario is not only reducing winter electricity pricing this November, but it is also cutting down on its ratepayer rebates.
As of Nov. 1, the Ontario Electricity Rebate (OER) will change to 15.7 per cent, reflecting a near eight per cent drop. The rebate is applied on the electricity bill of all residential, small business and farm customers.
“Our government continues to keep electricity costs down for Ontario families. With electricity prices falling this winter, we continue to provide an energy rebate saving an average family nearly $275 annually,” Noah Mawji, spokesperson for Energy Minister Stephen Lecce said in a statement.
A typical customer, using 700 per kilowatt hour of electricity each month, will see their bills decrease by $23 every month now, according to the province. Before, the OER decreased bills by about $36 each month, or $432 annually.
The reduction in the rebate percentage does not necessarily mean electricity bills will be more expensive. In the last five years, the OER has ranged between 13.1 per cent and 23.5 per cent.
“The overall rate of increase for customer bills will remain consistent with previous years,” the OEB said.
Ontarians can choose from three regulated pricing plans for their electricity services.
Those who choose “time-of-use” plans will pay an off-peak rate of 9.1 cents per kilowatt hour (previously 9.8 cents), 14.6 cents per kilowatt hour during mid-peak hours (previously 15.7 cents), and 18.9 cents per hour during on-peak hours (previously 20.3 cents).
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Ontarians on the “ultra low overnight” plan will pay 3.7 cents per kilowatt hour during the ultra-low overnight period (previously 3.9 cents), 9.1 cents per kilowatt hour for the off-peak period (previously 9.8 cents), 14.6 cents per kilowatt hour during mid-peak hours (previously 15.7 cents), and 37.7 cents per kilowatt hour during peak hours (previously 39.1 cents).
Then there’s the “tiered” plan, where residential customers will spend 11.2 cents per kilowatt hour for the first 1,000 kilowatt hours they use, which is down from 12 cents. Residents will pay 13.2 cents per kilowatt hour for every additional hour used, which was previously 14.2 cents.
“The seasonal change in the threshold for residential customers provides for an additional 400 (kilowatt hours) of electricity per month at the lower price in the Winter,” the province said.
The Ontario Energy Board details the upcoming pricing plans every October, determining the fees through a forecast of how much it cost to supply electricity to its customers over the next 12 months. Any shortfall or surplus between the forecast and actual costs from the previous period, according to the board, is also considered in the price-setting process.
