On May 1, 2022, Time-of-Use (TOU) and Tiered prices for residential and small business customers under the Ontario Energy Board’s (OEB) Regulated Price Plan (RPP) will remain unchanged.
The summer Time-of-Use (TOU) hours and the change in the Tier threshold for residential customers on Tiered pricing will take effect May 1 as usual.
About TOU and Tiered Pricing Under the RPP
As communicated by the Ministry of Energy in December 2021, the Ontario government enacted legislation which, as of January 1, 2022, requires the OEB to set Regulated Price Plan (RPP) electricity rates annually on November 1st. The past practice of setting rates twice a year has been discontinued.
With TOU prices, the price depends on when customers use electricity. There are three TOU periods – on-peak, mid-peak and off-peak. Prices are highest during on-peak, lower during mid-peak and lowest during off-peak.
Under Tiered prices, a customer can use a certain amount of electricity each month at a lower price. Once that limit is exceeded, the price goes up. In the summer period (May 1 – October 31), the Tier threshold for residential customers is 600 kWh. The Tier threshold for small business customers is
750 kWh all year round.
Understanding Electricity Bills
Electricity prices are shown on the Electricity line of the bill. This is the cost of the electricity used in the customer’s home or small business.
Electricity distributors deliver this power to their customers’ homes and businesses. They are not allowed to earn any profit from the sale of electricity. Electricity distributors, like Alectra Utilities Corp. or Hydro Ottawa Ltd., and electricity transmitters, like Hydro One Networks Inc., recover their operating costs and an appropriate level of return through rates that are approved by the OEB and reflected on the Delivery line of customer bills. Visit our Understanding your electricity bill page for a more detailed explanation of the different line items on electricity bills.
About the Ontario Electricity Rebate
The Ontario Electricity Rebate (OER) is a pre-tax credit that appears at the bottom of electricity bills. For more information about the OER, please visit ontario.ca/page/changes-your-electricity-bill.
Power is Personal
Residential and small business customers can choose their price plan, either TOU or Tiered. Customers who don’t want to switch their price plan, don’t need to do anything. They will stay on their current price plan. If a customer wishes to switch, they must notify their utility by completing and submitting an election form. Customers can contact their utility or visit their utility’s website for the election form.
The OEB has a webpage and bill calculator to help customers who may be considering a switch in their electricity price plan. For more information, see oeb.ca/choice.
Contact UsYou can find all reports and documents related to RPP prices at oeb.ca or you can call us (toll-free) 1-877-632-2727.
For More Information
416-314-2455 / 1-877-632-2727