Business Rate Change - man talking on cellphone

Business Rate Change

What are the changes?

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.

When do the changes take effect?

Changes to Electricity and Regulatory rates are effective July 1, 2017.

Why are Rates Changing?

Traditionally, the Ontario Energy Board (OEB) reviews electricity prices for households and businesses twice each year, on May 1 and November 1. Every six months, the OEB forecasts how much it will cost to supply electricity over the next 12 months. It then adjusts the price to match its forecast of costs and demand. It also corrects any difference between previous forecasts and actual costs.

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: www.oeb.ca/newsroom/2017/fair-hydro-act-2017

Rate Change Impact

How will the changes impact my bill?

The electricity and regulatory rate changes take effect on July 1, 2017. Toronto Hydro-Electric System Limited will prorate your bill so that the charges before July 1, 2017 are charged at the former rates and on or after July 1, 2017 at the new rates.

General Service Average Monthly Bill Impacts for July 1, 2017 change in Electricity and Regulatory Charges
Customer Type Monthly Consumption Total Bill
Before July 1, 2017*
Total Bill
After July 1, 2017*
($)
Impact
(%)
Impact
*General Service
less than 50 kW
2,000 kWh $345.32 $309.71 -$35.61 -10.3%
*General Service
50 - 999 kW
388 kVA
150,000 kWh
$24,716.47 $24,436.32 -$280.15 -1.1%
*General Service
1,000 - 4,999 kW
1,778 kVA
800,000 kWh
$125,987.28 $124,493.14 -$1,494.14 -1.2%
*General Service
5,000 and above
9,434 kVA
4,500,000 kWh
$668,278.33 $660,026.86 -$8,251.47 -1.2%

*HST and 8% Provincial Rebate are not included.

Important notes:

  1. Sample calculations reflect the impact of July 1, 2017 Electricity and Regulatory charges.
  2. Except for the Monthly Demand less than 50 kW class, which is calculated based on Regulated Price Plan (RPP) Time-of-Use pricing, sample bill impacts of the other three General Service classes are based on the Weighted Average Hourly Spot Price (WAHSP) and Average Global Adjustment Price for a typical customer not eligible for the 8% Provincial Rebate. The RPP Tiered pricing is applicable to customers who are already in the RPP Tiered pricing program.
  3. For General Service classes with Monthly Demand > 50 kW, under the Fair Hydro Act, if you are not billed on RPP rates but are otherwise eligible for the 8% Provincial Rebate, Toronto Hydro will apply a Global Adjustment (GA) credit to your consumption on or after July 1, 2017. You will see a lower GA amount under the Electricity section of your bill. The GA credit is designed to provide the same level of benefit as customers under the Regulated Price Plan.