Changes as of June 1, 2020
In response to the COVID-19 pandemic situation, the Government of Ontario introduced a fixed electricity rate called the COVID-19 Recovery Rate. As a result, from June 1 to October 31, 2020, residential 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.
Changes as of March 1, 2020
As of March 1, 2020, the distribution portion of the Delivery Charge on your bill decreased 17.4%. The decrease reflects changes in distribution rates as approved by the OEB as part of Toronto Hydro’s 2020-2024 rates application. Over the past few weeks, customers began receiving the benefit of the rate relief associated with this change.
The decrease applies to the Toronto Hydro portion of your bill, which makes up approximately one third 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.
A typical residential customer consuming 750 kilowatt-hours (kWh) will experience an average decrease of $5.60 on their total monthly bill, including HST and the Ontario Electricity Rebate (OER).
A typical multi-unit residential customer (certain apartment and condo residents) consuming 300 kWh will see an average decrease of $2.99 on their total monthly bill, including HST and the OER.
Changes as of November 1, 2019
Starting November 1, 2019, the previous 8% rebate and other built-in reductions are being replaced with the 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.
Rate 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 rate changes occur every year?
Different rates (prices) on your bill are updated annually by the OEB during specified times. We're forecasting our portion of the Delivery Charge will be below 2019 levels for the next five years.
What is the Delivery Charge?
The Delivery Charge represents the cost of getting power from generators to your home, and ensuring electricity is available when you need it. These charges include costs from transmission companies such as Hydro One, as well as costs from us (Toronto Hydro). Our portion of your bill is invested into the local distribution grid to maintain safety and reliability of our infrastructure, help support a growing city, and enable us to plan for and respond to extreme weather.
How is the Delivery Charge set?
Delivery charges are approved by the OEB. Some of these are fixed at a set amount per month. Others are variable and increase or decrease depending on how much electricity you use. That means that if you’re away from your home and your electricity usage drops, your delivery charge may not decrease as much as you would expect, since part of this charge is fixed and will remain the same from month to month. The fixed portion of the charge helps cover the costs of the poles and wires that are available 24/7 to deliver electricity to your home, on demand.
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.