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Changes to Industrial & Commercial electricity costs Effective January 1, 2021

Dec 26, 2020

Ontario deferred a portion of Global Adjustment (GA) between April and June 2020 by limiting the Class B GA rate to $115/MWh for non-Regulated Price Plan (RPP) customers and providing proportionate reductions for Class A customers.

Ontario has made amendments to O. Reg. 429/04, effective January 1, 2021, to enable the recovery of those deferred GA costs.

Starting in January 2021, Class A and non-RPP Class B customers will repay the deferral costs over 12 months.

At the same time, Ontario has made regulatory amendments such that starting January 1, 2021, a portion of non-hydro renewable energy contract costs will be paid by the government instead of electricity customers. This will lower electricity bills for commercial and industrial customers and more than offset the impact of recovering the deferred GA. This funding is also intended to continue
well beyond 2021.

Click here for more information.