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Posted in: Energy Policy | Ontario

Oct 22, 2019

Province Implements Changes to Residential Hydro Bills to Highlight Provincial Subsidies

As of November 1, 2019, Ontario electricity providers will be required to list the total amount of the provincial subsidization of electricity charges on residential customer’s bills. The changes will not, however, affect the amounts currently paid by customers. This change is part of the provincial government’s emphasis on transparency in the electricity sector.

Three regulations will be amended to implement the change:

Residential customer bills currently list the 8% HST Rebate. This will be replaced with the heading “Total Ontario Support,” which will list the combined amount of the 8% Rebate and the benefit provided by the Global Adjustment refinancing under the Fair Hydro Plan. The total combined amount of the subsidy is about 25%. At the same time, the per-kilowatt-hour price appearing on residential bills will also be changed to reflect the non-subsidized amount. The net effect of these changes, therefore, will not affect the actual total cost paid by customers. The OEB recently announced a change (increase) in electricity commodity costs under the RPP (see here).

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