Business rate changes

Information about the recent rate changes.

What's changed?

Changes as of May 1, 2021

Customers enrolled under Regulated Price Plan (RPP)

Effective May 1, 2021, the Ontario Energy Board (OEB) lowered the electricity rates for customers paying Time-of-Use (TOU) and Tiered rates under the RPP. For information about these rates, visit our rates page.

Eligible customers on the RPP now have the option to choose between TOU and Tiered pricing plans.

Learn more about customer choice

Ontario Electricity Rebate (OER)

The provincial government also announced a decrease in the OER from 21.2% to 18.9%. For information about the OER, visit our OER page.

Changes as of January 1, 2021

Customers enrolled under Hourly Spot Pricing or with a retailer

The Ontario government made two announcements related to the Global Adjustment (GA): the GA Reduction and GA Deferral Recovery effective January 1, 2021.

GA Reduction

As part of the Ontario budget, starting on January 1, 2021, the Ontario government is reducing the cost of GA for industrial and commercial customers by shifting a portion of non-hydro renewable energy contract costs to the tax base. The GA Reduction is considerably larger than the GA deferral recovery. For more information, please visit the Government of Ontario’s website.

GA Deferral Recovery

The Ontario government announced that effective January 1, 2021 and for the next 12 months, non-RPP customers will repay the deferral GA costs from April to June 2020. To provide companies with temporary immediate relief on their electricity bills, the Ontario government deferred a portion of GA charges for industrial and commercial electricity consumers that did not participate in the Regulated Price Plan (RPP) from April until end of June 2020 by limiting the Class B GA rate to $115 per megawatt-hour and providing proportionate reductions for Class A customers. For GA Deferral rate information, please refer to the IESO website.

As a result of these two GA initiatives by the Ontario government, 2021 Class A and non-RPP Class B customers could see savings of about 11% and 12%, respectively. Actual savings may vary depending on consumption patterns.

Frequently asked questions

What are the Delivery Charges?

As of January 1, 2021, the Delivery Charges on your bill have been updated. The Delivery Charges represent the cost of getting power from generators to homes and businesses and ensuring electricity is available when you need it. They include costs from the transmission company, as well as costs from Toronto Hydro.

Toronto Hydro is responsible for the distribution portion of the Delivery Charges on your bill. The updated distribution charges reflect rates that have been approved by the Ontario Energy Board (OEB) as part of our 2020-2024 rates application.

Why have the Delivery Charges been updated?

The updates to the distribution portion of the Delivery Charges support Toronto Hydro’s five-year investment plan for 2020-2024. This plan—which was developed in consultation with our customers—will allow us to continue to invest in grid safety and reliability, support our growing city and meet the needs of our customers.

Learn more about our investment plan