Business rates change

Information about the recent changes.

What's changed?

Changes as of June 1, 2020

In response to the COVID-19 pandemic situation, the Government of Ontario introduced a fixed rate called the COVID-19 Recovery Rate. As a result, from June 1 to October 31, 2020, small business customers on Time-of-Use (TOU) pricing will pay the fixed rate of 12.8 ¢/kWh no matter what time of day the electricity is consumed.

The 12.8 ¢/kWh pricing applies automatically – no customer action is required. For more information, visit the Ontario Energy Board (OEB) website.

Learn more about how we’re responding to COVID-19

Changes as of March 1, 2020

As of March 1, 2020, the distribution portion of the delivery charge on your bill changed. This reflects changes in distribution rates as approved by the OEB as part of Toronto Hydro’s 2020-2024 rates application.

The change applies to the Toronto Hydro portion of your bill, which makes up approximately a third or less of the total bill. The remainder of the bill covers charges for commodity, transmission and regulatory costs, which we collect without mark-up and pass on.

Changes as of November 1, 2019

Starting November 1, 2019, the previous 8% rebate and other built-in reductions are being replaced with the Ontario Electricity Rebate (OER) of 31.8%. The change was introduced by the Ontario government as an expanded rebate providing bill relief that will be applied to customer bills, largely offsetting the price changes on the electricity line. The rebate will be applied to bills for most residential consumers, farms, and many small businesses.

For additional information, please visit the Government of Ontario website.

Rates change questions

What is the timing of the rate changes?

  • June 1, 2020: The Government of Ontario announced the COVID-19 Recovery Rate of 12.8 ¢/kWh, 24 hours a day, seven days a week until October 31, 2020
  • March 1, 2020: Changes to the distribution portion of the Delivery Charge
  • May 1 and November 1 (twice a year): Updates to Electricity Commodity Rates are made by our regulator, the OEB, generally twice a year. For more information, visit the OEB website
  • According to the OEB's discretion: Updates to Regulatory Charges are set by the OEB and apply to all utilities

Will these changes occur every year?

Different rates (prices) on your bill are updated annually by the OEB during specified times. Over the next five years, we forecast average annual business rate increases at or below the rate of inflation.

Why is the Delivery Charge changing?

Proactive investments in the renewal and modernization of the grid have resulted in better grid and utility performance, as well as lower prices. Over the next five years, Toronto Hydro has a $3.8 billion plan to enable 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 2020-2024 plan

Rate change impact

How will the Delivery rate change impact my bill?

The change in Delivery take effect on March 1, 2020. Toronto Hydro will prorate your bill so that the charges before March 1, 2020 are charged at the former rates and on or after March 1, 2020 at the new rates.

Total bill comparison: General service less than 50 kW

Monthly Consumption 2019 2020 ($) Impact (%) Impact
2,000 kWh $333.78 $330.05 -$3.72 -1.1%

Total bill comparison: General service 50 - 999 kW

Monthly Consumption 2019 2020 ($) Impact (%) Impact
200 kVA or 79,000 kWh $14,183.15 $13,786.30 -$396.85 -2.8%

Total bill comparison: General service 1,000 - 4,999 kW

Monthly Consumption 2019 2020 ($) Impact (%) Impact
2,000 kVA or 900,000 kWh $153,429.31 $150,570.96 -$2,858.35 -1.9%

Total bill comparison: General service 5,000 kW and above

Monthly Consumption 2019 2020 ($) Impact (%) Impact
9,700 kVA or 4,100,000 kWh $703,885.52 $705,268.08 $1,382.56 0.2%

*HST and Ontario Electricity Rebate (assumed eligible) are included.

Important notes:

  • Sample calculations reflect the impact of the March 1, 2020 change in Delivery
  • For GS < 50 kW, Regulated Price Plan (RPP) TOU effective November 1, 2019 is used for sample bill impacts
  • For GS 50-999 kW, GS 1,000 - 4,999 kW, and GS > 5,000 kW, estimated Spot Price is used for sample bill impacts