Ontario Provides Consumers with Greater Stability and Predictability with Their Electricity Bills
Today, Greg Rickford, Minister of Energy, Northern Development and Mines, issued the following statement on electricity rate relief measures during the COVID-19 outbreak. "Our government is committed to supporting families and business-owners as we plan for the safe and gradual reopening of the province.
Since March 24, 2020, we have invested just over $175 million to deliver emergency rate relief to residential, farm and small business electricity consumers by suspending time-of-use (TOU) electricity pricing. This investment was made to protect the people of Ontario from a marked increase in electricity rates as they did their part by staying home to prevent the further spread of the virus.
As Ontarians continue to work and learn from home, we are extending the suspension of time-of-use price to provide consumers with greater stability and predictability with their electricity bills.
To extend this support responsibly, we will introduce a fixed electricity price, known as the COVID-19 Recovery Rate, of 12.8 cents per kWh, which will be automatically applied to all time-of-use customers 24 hours a day, 7 days a week. This fixed electricity price will be in place from June 1 - October 31, 2020.
The COVID-19 Recovery Rate of 12.8¢/kWh is based on the average cost of electricity, set by the Ontario Energy Board. This fixed rate will continue to suspend time-of-use prices in a fiscally responsible manner. By introducing this new fixed rate, consumers will have greater flexibility to use electricity when they need it without paying on-peak and mid-peak prices. Thank you to the millions of Ontarians who are helping us stop the spread. More information on the COVID-19 Recovery Rate, and government's plan to build an electricity system that works for the people of this province, will be announced at the Premier's daily briefing on Monday, June 1, 2020 at 1:00 p.m. EST."
The new COVID-19 Recovery Rate is the Ontario Energy Board's (OEB’s) average Regulated Price Plan (RPP) Rate, which is based on the forecast average electricity supply cost for RPP consumers as of November 1, 2019, as published in the OEB’s most recent RPP Price Report.
Time-of-use (TOU) electricity rates vary by time of day, comprised of three different rate periods of off-peak, mid-peak and on-peak pricing.
The OEB sets both tiered and time-of-use (TOU) rates as part of the RPP.
There are approximately five million residential consumers, farms and some small businesses billed using TOU electricity prices under the RPP.