ontario hydro rate increase 2019
Transparency is not synonymous with simplicity nor does it do anything to reduce costs. November 2019 weighted average price is 12.8 cents/kWh. Limiting rate increases through government regulation is a practice which has been used by past governments to artificially maintain prices low. The regulatory portion of the bill is described by the OEB here: These charges go to various entities for purposes as described in the link. This seems to be a conflict of interest when the OEB are the ones approving the rate increases. From then on, I economize on the typing by using the shorter term. They are reportedly based on recommendations of the Auditor General and the Independent Financial Commission of Inquiry. Explaining the Electricity Sector in Ontario. Unfortunately it isn’t sustainable unless the underlying drivers of rising utility costs are addressed. You could look at the November 2016 numbers compared to the November 2019 ones, take the average TOU (there I go again) distribution to give you an idea of what has happened. The new TOU prices set by the OEB for November 1, 2019 under the RPP are shown in the table below. The onus is on the ratepayer to ensure you receive the subsidy for which you are entitled. winter 2017, 2018, 2019 / summer 2017, 2018, 2019) to see how much they are increasing. The OEB issues decisions and orders setting the charges included in the Regulatory line item on your bill. I’d guess its less than 1% of the bill – but I haven’t done the math on it. Under new OEB rules most distribution companies must migrate residential customers to a fixed charge for delivery in 2019. The Ontario Energy Board (OEB) has approved new delivery rates for 2018 and 2019 that will apply to your usage starting on July 1, 2019.
It’s actually not a 55% rate increase to your bill.
Electricity rates in Ontario are set to go up starting Nov. 1. After 2016 there was a rate-modifier built in because of the Fair Hydro Act.
Thank you for providing some details on the impact on rural customers Bob.
The chart below shows the rates and tiers for each type of customer. Here is what I get: November 2016 weighted average price was 11.18 cents/kWh. Time of Use (TOU), Ontario Energy Board (OEB), Local Distribution Company (LDC). The Ontario Energy Board (OEB) and Ministry of Energy, Northern Development and Mines announced on October 22, 2019 there will be increases to energy rates with a new billing format on November 1, 2019. Derek. That may or may not satisfy everyone’s concern about conflict of interest, but I can’t offer up much else… It still looks like we have a Hydro Mess. The increase for a typical residential customer will be 1.8% or about $2 per month for a residential customer using 700kWh per month of energy. With a new billing format, energy subsidies will appear on a separate line titled ‘Ontario Electricity Rebate’. Tiered rates. It is part of the government’s initiative to improve the transparency of charges on the ratepayer’s bill. Ontario Electricity Rebate The Government of Ontario introduced the Ontario Electricity Rebate, which reduced the pre-tax amount of the bill by 31.8%, effective November 1, 2019.
Case Study – How does the cost of labour affect rates? Beginning November 1st, the actual rates are shown on the bill and the rebate is a separate line item. Check with your LDC. These prices will be higher than what we've seen over the past few months, however, prices will still remain at a fixed rate.
The OEB calculator says my January bill – if the same volume of KWH is used will be $100 higher. There are additional subsidies to support low density customers and provide rate protection which should be shown on the new bill. Historical rates – https://www.oeb.ca/rates-and-your-bill/electricity-rates/historical-electricity-rates Thanks for reading the post and positive feedback David! Its a good question to ask the OEB directly. As announced by the government and OEB, ratepayers will continue to receive the 8% PST rebate and the Global Adjustment Refinancing subsidy initially defined by the Fair Hydro Plan. Under tiered rates, a customer can use a certain amount of energy each month at a lower rate.
The conservation program charges were moved to the tax base. I’ve revised the article to make sure I maintain that standard. The November rates are the actual energy rates without any of the current government subsidies applied. I’m a Hydro One rural customer, electric heat user, and my November, December bills are 15% and 20% more ($50 and $65) compared to 2018. In my articles I generally try to use the full term with the acronym the first time I introduce one in the article. The Fair Hydro Plan is to be wound down and replaced by the Fixing the Hydro Mess Act which passed into law in May of 2019. Check with reliable sources like the OEB and your LDC for insight into changes to your rates and service costs. Hydro One delivers electricity safely and reliably to homes and businesses in Ontario. Average of 4.8 % per year. At some point in the future another cost-crisis is sure to emerge that will require new and creative solutions which will inevitably involve trade-offs between cost, reliability and service levels. Might I suggest that you use full terms for the first use in each paragraph. It is really difficult for ratepayers to follow the changing landscape associated with electricity costs. I’ve checked with some neighbours, both electricity heat users and propane/oil heaters, and they are getting similar increases – $20/$30 increases on normal use level bills and $50 and more for those using 3,000 to 4,000 kWh a month. The cause, as I’ve looked closer at the actual bills is because the much higher electricity price (up 55%) works its way into calculations for line losses and regulatory charges, neither of which is offset by the new OER. Thanks for the info! The current government will, I hate to tell them, join a long list of former Ontario governments who find themselves in sucked down into the quick sand of voter anger for trying to, and failing to ‘fix’ Ontario’s high electricity costs. Thank you very much for the valuable insight on this increase. Here is the seasonal price update table from the OEB announcement: To save you having to do the math, that’s an increase of 55% in the energy rates taking effect on November 1, 2019. Effective November 1, 2020, the rebate has increased to 33.2%. The timing of an increase by the LDC is not tied to the seasonal adjustment of energy TOU rates and may take effect on a different date.
The names of the subsidies may change but they should remain in place for now…. The GST portion of taxes also increases due to the higher charges, again no subsidy for that tax.
The economic reality of wind – “down the rabbit hole”, Capacity and capacity factor of wind energy, Ministry of Energy, Northern Development and Mines, A Perspective on Ontario’s Cancelled Renewable Energy Contracts, https://www.oeb.ca/rates-and-your-bill/electricity-rates/historical-electricity-rates, https://www.oeb.ca/consumer-protection/energy-contracts/bill-calculator, Off-Peak (Weekdays 7 p.m. – 7 a.m., all day weekends and holidays), On-Peak (Weekdays 7 a.m. –11 a.m. and 5 p.m. – 7 p.m.). The OEB itself is permitted to recover its operating costs from the electricity business by legislation. I feel the OEB should be given a flat rate that is reviewed based their performance and answerable to our elected representatives. Bill calculator – https://www.oeb.ca/consumer-protection/energy-contracts/bill-calculator In Ontario that has not yet happened. It is important to hear from someone that doesn’t fit the ‘average customer’ profile.
The new bill graphic with explanation from the OEB is located on-line here. Just in time for the holiday season. The theory is that we benefit from knowing what the actual energy rates are and how much the government is putting out in order to make our lives more affordable (my presumption – the government hasn’t said that).
Enter your email address to subscribe Life by Numbers and receive notifications of new posts by email. : Time-of-Use Pricing The current regulated electricity rates charged to Ontario hydro customers for the period May 1, 2019 to Oct 30, 2019 are shown below. The rates prior to November 1st had the rebates from the Fair Hydro Plan applied, masking the true cost. These changes are part of the Fixing the Hydro Mess Act. That means you will no longer save on the delivery charges when your energy usage is low or face higher charges for periods when energy usage is high. That’s a 14 % increase for energy over 3 years. It is incumbent on the government to ensure the value of its regulatory services through oversight by the OEB, it’s board and the Ministry of Energy, Northern Development and Mines. Also check out this page that shows electricity rates by province and Ontario's historical RPP Rates. A small number of Ontario electricity customers are billed using tiered rates. On a positive note, Ill bet you now know what TOU, OEB and LDC are!
The change is revenue neutral for LDCs, meaning some customers will see increased costs and some will see reduced costs. This is all smoke and mirrors under the guise of bill transparency as required by our government. Regards Oct 22, 2019 • • 1 minute read Article content TORONTO — The Ontario Energy Board says hydro rates for households and small businesses will be going up starting next week. Ontario’s Wholesale Electricity Market for Dummies, Electric Vehicles and greenhouse gas emissions, Electric Vehicle efficiency and operating cost, Nuclear Generation – Past, Present and Future, Local Distribution Company Bill Comparison. Your Local Distribution Company (LDC) may have applied for a rate change at the OEB and received approval for an increase. Electricity costs are going to continue to increase, however they will be held to the rate of inflation through the regulatory process conducted by the Ontario Energy Board. The bottom line is people with 700 kWh or 1,000 kWh a month usage won’t really notice a $5 increase, but those with $20, $50 and $100 increases are going to notice when January and February usage bills come in.
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