Changes as of November 1, 2020
Effective November 1, 2020, the Ontario Energy Board (OEB) announced changes to the electricity rates for customers paying Time-of-Use (TOU) and Tiered rates under the Regulated Price Plan (RPP). For more information, visit the OEB website.
The provincial government also announced an increase in the Ontario Electricity Rebate (OER) from 31.8% to 33.2% effective November 1, 2020. The Ontario government introduced the OER 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.
Effective November 1, 2020, eligible customers on the RPP now have the option to choose between TOU and Tiered pricing plans.
Learn more about customer choice
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.
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.
Questions about the rate changes
What is the timing of the rate changes?
- March 1, 2020: Changes to the distribution portion of the Delivery Charge
- May 1 and November 1: 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 for residential customers.
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.