Residential rates change

Information about the recent rates change.

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 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 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 at least once per year
  • 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.

Learn more about why we are investing

Rate change impact

As of January 1, 2020, for an average residential customer who is on Time-of-Use (TOU) prices and consumes 700 kWh per month, the effect of the new rates will result in an average decrease on the total bill of approximately $2.35 (1.6%) per month before HST and the Ontario Electricity Rebate.

The bill amount of a TOU customer using the same amount of energy every month may vary significantly depending on energy usage patterns. Please refer to residential rate impact tables for more detailed information.

Conservation can help you manage your electricity costs. View our energy saving tips.

RPP TOU Pricing: Average Monthly Bill Impacts Based on January 1, 2020 Change in Delivery

Monthly Consumption Before January 1, 2020 After January 1, 2020 ($) Impact (%) Impact
400 kWh $103.68 $101.47 -$2.21 -2.1%
700 kWh $151.20 $148.85 -$2.35 -1.6%
1,500 kWh $277.92 $275.20 -$2.72 -1.0%
2,000 kWh $357.13 $354.18 -$2.95 -0.8%

*HST and Ontario Electricity Rebate are not included.

Important notes:

  • Sample calculations reflect the impact of January 1, 2020 change in Delivery
  • RPP TOU electricity prices are used for sample bill calculations
  • Calculations are based on the assumption that a customer has the following pattern of energy usage: 64% of monthly energy during off-peak periods; 18% during mid-peak periods and 18% during on-peak periods

As of January 1, 2020, for an average residential customer who is signed with an energy retailer and consumes 700 kWh per month, the effect of the new rates will result in an average decrease on the total bill of approximately $2.83 (2.0%) per month excluding HST and the Ontario Electricity Rebate.

Signed with an energy retailer: Average Monthly Bill Impacts Based on January 1, 2020 Change in Delivery

Monthly Consumption Before January 1, 2020 After January 1, 2020 ($) Impact (%) Impact
400 kWh $98.89 $96.40 -$2.49 -2.5%
700 kWh $143.00 $140.17 -$2.83 -2.0%
1,500 kWh $260.64 $256.90 -$3.74 -1.4%
2,000 kWh $334.16 $329.85 -$4.31 -1.3%

*HST and Ontario Electricity Rebate are not included.

Important notes:

  • Sample calculations reflect the impact of the January 1, 2020 change in Delivery
  • Estimated retailer rates were used for sample residential bill impacts enrolled with a retailer. As a result, bill impacts may vary from the rate agreed with your retailer

As of January 1, 2020, Competitive Sector Multi-unit Residential customers who are on Time-of-Use (TOU) prices and consume 300 kWh per month, will see an average decrease on the total bill of approximately $0.73 (0.9%) per month (HST and Ontario Electricity Rebate are not included).

The bill amount of a TOU customer using the same amount of energy every month may vary significantly depending on energy usage patterns. Please refer to Competitive Sector Multi-unit Residential rate impact tables for more detailed information.

RPP TOU Pricing: Average Monthly Bill Impacts Based on January 1, 2020 Change in Delivery

Monthly Consumption Before January 1, 2020 After January 1, 2020 ($) Impact (%) Impact
200 kWh $64.22 $63.56 -$0.66 -1.0%
300 kWh $80.39 $79.65 -$0.74 -0.9%
600 kWh $128.87 $127.91 -$0.96 -0.7%
800 kWh $161.20 $160.09 -$1.11 -0.7%

*HST and Ontario Electricity Rebate are not included.

Important notes:

  1. Sample calculations reflect the impact of January 1, 2020 change in Delivery.
  2. RPP TOU electricity prices are used for sample bill calculations.
  3. Calculations are based on the assumption that a customer has the following pattern of energy usage: 64% of monthly energy during off-peak periods; 18% during mid-peak periods and 18% during on-peak periods.