The Government of Ontario has introduced a fixed electricity price – known as the Covid-19 Recovery Rate – of 12.8 cents per kWh, which will be automatically applied to all time-of-use customers 24 hours a day, 7 days a week.
Compared to the current off-peak price of 10.1 cents/kWh, the average customer (700kWh monthly consumption) would see a bill increase of approximately $16.13 when they are moved to the Covid-19 Recovery Rate of 12.8 cents/kWh, said Oshawa Power.
This fixed electricity price will be in place from June 1 – October 31, 2020. As of Monday June 1, households, farms and small businesses who pay time-of-use electricity rates will be charged 12.8¢ 24 hours a day, seven days a week until October 31, 2020, it explained.
Tiered customers will not be affected by the new fixed price. The Ontario Energy Board has extended the winter tier prices and the winter thresholds also remain in place until further notice. By keeping the winter threshold in place, residential customers will have an additional 400kWh/month available at the lower Tier 1 price.
Bill Comparison Examples:
- Compared to regular time-of-use rates, the average consumer (700kWh monthly consumption, 64% off-peak, 18% mid-peak, 18% off-peak) would not see a bill change when charged the Covid-19 Recovery Rate of 12.8 cents/kWh.
- Compared to regular time-of-use rates, a consumer who uses 700kWh a month but has an atypical consumption pattern (45% off-peak, 25% mid-peak, 30% on-peak) would see a bill decrease of approximately $9.47 when charged the Covid-19 Recovery Rate of 12.8 cents/kWh.
- Compared to regular time-of-use rates, a consumer who uses 700kWh a month with a consumption pattern of 55% off-peak, 20% mid-peak, 25% on-peak would see a bill decrease of approximately $4.99 when charged the Covid-19 Recovery Rate of 12.8 cents/kWh.
What will change on your bill? On your bill, you will see your consumption that was used prior to June 1, will be charged at the rate of 10.1 cents/kWh and any consumption used after June 1, will be charged at the flat rate of 12.8¢.
No action is required by electricity consumers: this change will be applied automatically for everyone paying time-of-use rates, for electricity consumed starting at 12:00 a.m. EST on June 1, 2020.
Stay Home Relief
In Toronto, Greg Rickford, Minister of Energy, Northern Development and Mines, said since March 24, Ontario has invested just over $175 million to deliver emergency rate relief to residential, farm and small business electricity consumers by suspending time-of-use (TOU) electricity pricing.
“This investment was made to protect the people of Ontario from a marked increase in electricity rates as they did their part by staying home to prevent the further spread of the virus.”
The minister said as Ontarians continue to work and learn from home, “we are extending the suspension of time-of-use price to provide consumers with greater stability and predictability with their electricity bills”.
Quick Facts
- The new Covid-19 Recovery Rate is the Ontario Energy Board’s (OEB’s) average Regulated Price Plan (RPP) Rate, which is based on the forecast average electricity supply cost for RPP consumers as of November 1, 2019, as published in the OEB’s most recent RPP Price Report.
- Time-of-use (TOU) electricity rates vary by time of day, comprised of three different rate periods of off-peak, mid-peak and on-peak pricing.
- The OEB sets both tiered and time-of-use (TOU) rates as part of the RPP.
- There are approximately five million residential consumers, farms and some small businesses billed using TOU electricity prices under the RPP.
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