On November 1, 2021, 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 winter Time-of-Use (TOU) hours and the change in the Tier threshold for residential customers on Tiered pricing will take effect November 1 as usual.
About TOU and Tiered Pricing Under the RPP
The OEB normally reviews TOU and Tiered prices every six months and resets them if necessary – typically on May 1 and November 1 – based on an estimate of how much it will cost to supply RPP customers with the electricity that they are expected to use.
RPP prices are set based on a forecast of how much it will cost to supply RPP customers with the electricity they are expected to use over the next 12 months. Any variance between forecast and actual costs, whether a surplus or shortfall, is factored into the next price-setting. TOU and Tiered prices are set so that both recover the same forecast average cost of supply for a typical customer.
Customers will not see a change in the prices on the Electricity line of their bills on November 1 as the OEB has determined that current prices will continue to be effective in recovering the forecast cost of supply.
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 winter period (November 1 – April 30), the Tier threshold for residential customers is 1,000 kWh, so that during the heating season households can use more power at the lower price. 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.
You 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