Effective November 1, 2019, the Ontario Energy Board (OEB) announced changes to electricity rates for customers paying under the Regulated Price Plan (RPP) for Time-of-Use (TOU) and Tiered rates. For additional information, visit the Ontario Energy Board (OEB) 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.
Rate change questions
Will these rate changes occur every year?
- Changes to the Delivery Charge typically take effect on January 1
- Updates to 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 website
- Updates to Regulatory Charges are set by the OEB and apply to all utilities
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?
Currently, the OEB requires that the Delivery Charge is partially based on your electricity consumption. 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?
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.