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Business Rate Change

What are the changes?

Effective January 1, 2018, the Ontario Energy Board (OEB) has approved changes to Delivery Charges.

The changes include:

  • Customer Charge
  • Distribution Charge
  • Rate Rider for Disposition of Deferral/Variance Account
  • Rate Rider for Disposition of Capacity Based Recovery Variance Sub-Account
  • Rate Rider for Disposition of LRAM Variance Account
  • Rate Rider for Disposition of Global Adjustment Account (Non-RPP Customers)
  • Transmission Network Charge
  • Transmission Connection Charge

Also on May 31, the Ontario government passed the Fair Hydro Act, 2017, which is intended to lower electricity bills by an average of 25% for all residential consumers, small businesses and farms. Part of this Act includes the following changes, effective July 1, 2017:

  • Lower Electricity Rates. Electricity rates for customers paying Time-of-Use (TOU) rates or Tiered Pricing through the Regulated Price Plan (RPP) have been reduced.
  • Lower Regulatory Charges. The Rural or Remote Electricity Rate Protection Charge (RRRP), which appears as part of the Wholesale Market Service Charges and off-sets the cost of serving customers in rural or remote areas, has been reduced.
  • If you are not billed on RPP rates but are otherwise eligible for the 8% Provincial Rebate, you will see a lower Global Adjustment (GA) amount under the Electricity section of your bill.

Why are Rates Changing?

A strong, stable electrical system is essential to a modern global city. It powers growth in Toronto and provides a foundation for the connected lifestyle we all enjoy. To fund necessary upgrades to our aging infrastructure, our regulator, the Ontario Energy Board, recently approved a five-year rate increase. This will enable more than $2 billion in capital investments in our system to improve reliability, safeguard against extreme weather events and meet growing demand.

Learn more about why we’re investing now

As part of Ontario government’s Fair Hydro Act, 2017, the OEB has set new lower Regulated Price Plan (RPP) electricity prices that build on the reduction in RPP prices that came into effect on May 1. For customers who are not billed on RPP rates but are otherwise eligible for the 8% Provincial Rebate, the OEB has set a credit which will be incorporated into the Global Adjustment (GA) charge to reduce the amount of GA you would otherwise have paid. This credit is designed to provide the same level of benefit as customers under the lower RPP prices.

For more information, please visit:

Rate Change Impact

How will the changes impact my bill?

The distribution and transmission rate changes take effect on January 1, 2018. Toronto Hydro-Electric System Limited will prorate your bill so that the charges before January 1, 2018 are charged at the former rates and on or after January 1, 2018 at the new rates.

General Service Average Monthly Bill Impacts for January 1, 2018 change in Delivery Charges
Customer Type Monthly Consumption Total Bill
Before January 1, 2018*
Total Bill
After January 1, 2018*
*General Service
less than 50 kW
2,000 kWh $309.71 $313.77 $4.06 1.3%
*General Service
50 - 999 kW
388 kVA
150,000 kWh
$19,748.86 $19,890.20 $141.34 0.7%
*General Service
1,000 - 4,999 kW
1,778 kVA
800,000 kWh
$99,551.61 $100,342.44 $790.83 0.8%
*General Service
5,000 and above
9,434 kVA
4,500,000 kWh
$554,055.38 $560,201.20 $6,145.82 1.1%

*HST and 8% Provincial Rebate are not included.

Important notes:

  1. Sample calculations reflect the impact of January 1, 2018 Delivery charges.
  2. Regulated Price Plan (RPP) is used for sample bill impacts for a typical customer not eligible for the 8% Provincial Rebate.
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