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COVID-19 Useful Information

Fixed 8.5 ¢/kWh Pricing Effective January 1, 2021

Support for customers during the province-wide shutdown

The province-wide shutdown means that more people will be staying home or running their small businesses from home. The Ontario Government has taken steps to hold the price of electricity at 8.5 ¢/kWh for electricity used from January 1 until the end of the day on January 28, 2021. Residential, small business and farm customers on Time-of-Use and Tiered price plans set under the Ontario Energy Board’s Regulated Price Plan will pay that fixed price. So, no matter what time of day you use your electricity, or how much you use, the fixed price will apply.

The price change will happen automatically. No customer action is required. For more information, visit oeb.ca.

 

Key Messages:

  • To support Ontarians staying home during the rapidly evolving COVID-19 situation, the Ontario government has taken steps to hold the price of electricity at 8.5 cents per kWh for electricity used from January 1, 2021 until the end of the day on January 28, 2021.  The fixed 8.5 ¢/kWh price is equal to the off-peak price set by the OEB on December 15, 2020 for January 1, 2021.
  • This fixed price will apply to residential, small business and farm customers who buy their electricity from their utility and applies to customers on Time-of-Use (TOU) or Tiered pricing.
  • Customers don’t need to do anything. This change will happen automatically for the electricity that they use from January 1, 2021 until the end of the day on January 28, 2021.
  • There are also bill support programs for low-income customers. Find out more at oeb.ca/billhelp.
  • The OEB’s winter disconnection ban in place for residential customers at this time. Residential customers cannot have their electricity disconnected for non-payment before May 1, 2021.

Frequently Asked Questions:

Why is this price relief only in place until January 28, 2021?
The government has chosen the 28-day period to align with other supports that the government has put in place for Ontarians staying at home during the province-wide shutdown announced on December 21, 2020.
How much will customers save with this change?
Because each customer consumes electricity differently, the bill impact of the fixed 8.5 ¢/kWh price will vary.
How much is the government spending on this initiative?
The Ontario Government has indicated that it plans to cover the financial impact of the price change through provincial revenues. That financial impact will therefore not be recovered from ratepayers on future electricity bills.
What is the impact of this initiative on electricity distributors?
The government has said the financial impact of the price change will be covered by the Province. Electricity distributors will not lose revenue as a result of this initiative. The OEB recognizes that there may be costs to distributors associated with implementing the price change. The OEB is allowing distributors to track these costs, and other costs associated with the COVID-19 pandemic, in a deferral account. Distributors can later apply to the OEB for approval to recover the costs that they have tracked in the deferral account.
When will this price change appear on my bill?
For many customers, their next bill after January 1, 2021 will show this new pricing. Some customers may receive a bill before their utility or unit sub-meter provider has been able to implement the pricing change.

The timing of your monthly electricity bill might mean that you won’t see the change on your bill right away. In that case, you will get a credit on a future bill.

For many customers, the first bill after January 1, 2021 will have more than the usual number of line items on the “Electricity” portion of their bill. These line items are necessary to reflect the different prices that are in effect at different times: (i) the current RPP prices that are in
effect until December 31, 2020; (ii) the fixed, 8.5 ¢/kWh price that will be in effect from January 1, 2021 until the end of the day on January 28, 2021; and (iii) the RPP prices that will be in effect starting on January 29, 2021, as set by the Ontario Energy Board on December 15, 2020.