Business rates change

Information about the recent changes.

What's changed?

Toronto Hydro received authorization from the Ontario Energy Board (OEB) to implement changes to its Delivery Charge, effective January 1, 2020.

Changes to Delivery rates include the ending of the following Rate Riders:

  • Rate Rider for Recovery of Stranded Meter Assets
  • Rate Rider for Recovery of the Gain on the Sale of Named Properties
  • Rate Rider for Recovery of Hydro One Capital Contributions Variance
  • Rate Rider for Application of IFRS – 2014 Derecognition
  • Rate Rider for Recovery of 2015 Foregone Revenue
  • Rate Rider for Recovery of 2016 Foregone Revenue
  • Rate Rider for Disposition of Deferral/Variance Account
  • Rate Rider for Disposition of Deferral/Variance Account for Non-Wholesale Market Participant Customers
  • Rate Rider for Disposition of Lost Revenue Adjustment Mechanism Variance Account (LRAMVA)
  • Rate Rider for Disposition of Capacity Based Recovery Variance Sub-Account
  • Rate Rider for Disposition of Global Adjustment Variance Account

Effective November 1, 2019, the Ontario Energy Board (OEB) announced changes in electricity rates for customers paying under the Regulated Price Plan (RPP) for Time-of-Use and Tiered rates. For additional information, visit the OEB's website.

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.

Timing of rate changes

  • Changes to the Delivery Charge typically take effect at least once per year
  • Updates to the Regulated Price Plan are made by our regulator, the OEB, generally twice a year – May 1 and November 1. For more information visit the OEB's website
  • 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. Although over time rates generally increase, in some instances, certain rates may stay static or decrease.

Why is the Delivery Charge 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, approved a five-year rate increase for the distribution portion of the Delivery Charge. 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

Rate change impact

How will the changes impact my bill?

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

Total bill comparison: General service less than 50 kW

Monthly Consumption Before January 1, 2020 After January 1, 2020 ($) Impact (%) Impact
2,000 kWh $411.05 $405.70 $-5.35 -1.3%

Total bill comparison: General service 50 - 999 kW

Monthly Consumption Before January 1, 2020 After January 1, 2020 ($) Impact (%) Impact
200 kVA or 79,000 kWh $12,551.46 $12,427.17 -$124.29 -1.0%

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

Monthly Consumption Before January 1, 2020 After January 1, 2020 ($) Impact (%) Impact
2,000 kVA or 900,000 kWh $135,778.15 $134,845.38 -$932.77 -0.7%

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

Monthly Consumption Before January 1, 2020 After January 1, 2020 ($) Impact (%) Impact
9,700 kVA or 4,100,000 kWh $627,458.36 $621,974.29 -$5,484.07 -0.9%

*HST and Ontario Electricity Rebate (assumed eligible) are not included.

Important notes:

  1. Sample calculations reflect the impact of the January 1, 2020 change in Delivery due to ending Rate Riders.
  2. For General Service (GS) < 50 kW, Regulated Price Plan (RPP) TOU is used for sample bill impacts.
  3. For GS 50-999 kW, GS 1,000-4999 kW, and GS > 5,000 kW, estimated spot price is used for sample bill impacts.