December 23rd - Upcoming electricity rate changes from Hydro Ottawa
RPP Electricity Rates and the Ontario Energy Rebate On January 1, 2021, the Ontario Energy Board (OEB) will be moving ahead with two changes with regards to electricity rates under the Regulated Price Plan:
The OEB will be lowering time-of-use and tiered electricity rates for households and small businesses who are under the RPP as announced by the Ontario Government on December 15.
The Province will be introducing a temporary off-peak flat rate of 8.5 c k/WH for all time-of-use and tiered customers, effective January 1, 2021. These changes would not impact any customers on retail contracts, and are in response to the current provincewide lockdown in Ontario regarding COVID-19. This flat rate will be in effect for 28 days.
The Province also indicated that it is considering changes to the CEAP and CEAP Small Business programs starting in 2021. It is anticipated that these changes will increase the number of eligible applicants by opening the current eligibility criteria. More information is expected to be released in January. These changes mean that electricity rates previously announced on November 1, 2020 will end on December 31, 2020. This also comes as the provincial government will be decreasing the Ontario Electricity Rebate (OER) that most residential customers, farms and many small businesses receive - from 33.2% to 21.2% - starting on January 1, as a result of a reduction in the cost of supplying electricity to customers. The OER is a total pre-tax credit that appears at the bottom of electricity bills. The government’s rationale is that lowering electricity rates will offset the change in the OER. It isn’t anticipated that either of these changes will have a significant impact on customers’ bill. Hydro Ottawa’s distribution rate Hydro Ottawa’s distribution rates are set by the Ontario Energy Board (OEB), based on applications submitted by Hydro Ottawa. It is expected this month that the OEB will approve changes to Hydro Ottawa’s distribution rates effective January 1, 2021. This distribution rate change represents Hydro Ottawa’s first annual rate adjustment under its five-year rate plan. Hydro Ottawa’s distribution rate makes up a portion of the Delivery Charge on customers’ electricity bill.
Please visit hydroottawa.com/rates after January 1, 2021 for updates.