Under O. Reg. 416/99 the Ministry of Energy is responsible for providing Ontario’s electricity supply mix data for electricity...
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Beginning February 23, 2021, residential and small business customers will resume paying Time-of-Use (TOU) and Tiered pricing...
Update: The Ont. Government is extending the fixed electricity price of 8.5¢/kWh for Time-of-Use & Tiered customers....
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May 2021 Electricity Price Changes – TOU & Tiered Prices and Ont. Electricity Rebate
On May 1, 2021, new Time-of-Use (TOU) and Tiered prices will come into effect for residential and small business customers under the Ontario Energy Board’s (OEB) Regulated Price Plan (RPP). The summer TOU hours, as well as the summer Tier threshold for residential customers, are also effective May 1, 2021.
The new RPP TOU prices set by the OEB for May 1, 2021 are shown in the table below. The table also shows the hours during which those prices apply:
|Summer TOU Prices||May 1, 2021
(Weekdays 7 p.m. – 7 a.m., all day weekends and holidays)
(Weekdays 7 a.m. – 11 a.m. and 5 p.m. – 7 p.m.)
(Weekdays 11 a.m. – 5 p.m.)
|Summer Tier Thresholds||May 1, 2021
|Tier 1||Residential – first 600 kWh/month*
Non-residential – first 750 kWh/month
|Tier 2||Residential – for electricity used above 600 kWh/month*
Non-residential – for electricity used above 750 kWh/month
|* Note Residential threshold decreased from 1,000 kWh (winter) to 600 kWh (summer)|
Ontario Electricity Rebate (OER)
The Ontario Electricity Rebate (OER) is an on-bill credit to eligible consumers including residential customers, small business and farms. The Government of Ontario has announced the OER will be changing from 21.2% to 18.9% effective May 1, 2021. This change helps ensure that the average residential bill will be held flat compared to January 1, 2021.
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. Prices are going down due to a surplus that has accumulated.
TOU and Tiered prices are set so that both recover the same forecast average cost of supply for a typical customer.
For more information, visit the Ontario Energy Board’s website: