skip to main content
Back to all blog posts

Posted in: Consumer Protection | Ontario | Ratemaking | Energy Policy

Jun 23, 2017

OEB Announces New Electricity Prices to Reflect the Fair Hydro Plan

By David Stevens

On June 22, 2017, the Ontario Energy Board announced new electricity prices that are intended to implement the promised 25% bill reduction from the Ontario Government’s Fair Hydro Plan.1 For most consumers, the impact will be seen in the form of reduced Regulated Price Plan (RPP) electricity prices. These new prices go into effect on July 1, 2017 and will be in place until April 1, 2018. For consumers not using the RPP (such as customers who have contracts with electricity retailers), the impact will be seen through a reduction to Global Adjustment charges. 

The table below, taken from the OEB’s June 22, 2017 News Release , sets out the new RPP rates (referred to as TOU or Time-of-Use prices), as well as the RPP rates that would have been in place without the Fair Hydro Plan.

TOU price periods

TOU prices that would have been in effect during the 2017 summer period without any Fair Hydro Act, 2017 reductions

TOU prices reflecting the Fair Hydro Act, 2017 reductions effective July 1, 2017

Off-Peak

9.1 ¢/kWh

6.5 ¢/kWh

Mid-Peak

13.3 ¢/kWh

9.5 ¢/kWh

On-Peak

18.5 ¢/kWh

13.2 ¢/kWh

 

As of July 1, 2017, the charges for Rural or Remote Electricity Rate Protection (RRRP) program currently included on electricity bills will be significantly reduced, reflecting the move to fund the RRRP from provincial revenues. This is explained in a June 22, 2017 OEB Decision and Order.

The manner by which the OEB calculated the new RPP rates is explained in a report titled Regulated Price Plan Prices and the Global Adjustment Modifier for the Period July 1, 2017 to April 30, 2018. The new RPP rates were determined in accordance with the "Fair Adjustment under Part II of the Fair Hydro Plan Act, 2017" Regulation, which we discussed in an earlier post. Essentially, the OEB calculated a typical consumer bill and then removed from that bill the costs for the Ontario Electricity Support Program (OESP), RRRP and the provincial portion of the HST. The OEB then calculated an updated RPP price that, when applied to typical consumption, would result in an overall bill that is 25% less than the prior typical bill, taking into account the impacts of OESP, RRRP and HST. Transmission and distribution charges are unaffected by this process. 

According to the OEB, a typical electricity consumer will save around $41 each month, as compared to the typical bill prior to the Fair Hydro Plan changes.



1 Discussion of the Fair Hydro Plan is found in recent posts, here, here and here.

Related Blogs

Ontario Proposes New Regulations to Support Expanded Net Metering By David Stevens Dec 08, 2017 A series of recent postings to Ontario’s Regulatory Registry set out proposed amended or new regulations that are intended to support expanded net metering opportunities in Ontario. These proposals follow the commitment in Ontario’s 2017 Long-Term Energy Plan (2017 LTEP) to give customers new way...

Posted in: Practice & Procedure | Ontario | Consumer Protection

Insights EnergyInsider
Court Denies Certification of Proposed Class Action Against Hydro One By David Stevens Dec 07, 2017 On November 28, 2017, the Ontario Superior Court dismissed a motion to certify a class action against Hydro One Networks Inc. (Hydro One) that sought damages of $100 million related to alleged overcharges resulting from the rollout of a new customer information system (CIS) starting in 2013. As s...
Directives Issued to IESO and OEB to Prepare Implementation Plans for 2017 LTEP By David Stevens Nov 16, 2017 In late October, Ontario’s Minister of Energy (Glenn Thibeault) issued Directives to the Independent Electricity System Operator (IESO) and the Ontario Energy Board (OEB), requiring each body to prepare “implementation plans” setting out the steps they intend to take to implement the goals and ob...