Toronto: Ontario government yesterday said it will continue to support electricity consumers by providing stability and greater customer choice, while helping those struggling to pay their energy bills as a result of the Covid-19 outbreak.
Details of the new programs were provided by Premier Doug Ford, Christine Elliott, Deputy Premier and Minister of Health, Greg Rickford, Minister of Energy, Northern Development and Mines, and Bill Walker, Associate Minister of Energy, said a government media statement.
Initiatives include:
- $9 million for the Covid-19 Energy Assistance Program (CEAP) to support consumers struggling to pay their energy bills during the pandemic. CEAP will provide one-time payments to consumers to help pay down any electricity bill debt incurred over the Covid‑19 period. Applications will be available through local utilities in the upcoming months;
- $8 million for the Covid-19 Energy Assistance Program for Small Business (CEAP-SB) to provide support to businesses struggling with bill payments as a result of the outbreak; and
- An extension of the Ontario Energy Board’s winter disconnection ban until July 31, 2020 to ensure no one is disconnected from their natural gas or electricity service during these uncertain times.
The government recently announced that it will continue the suspension of time-of-use (TOU) electricity rates and, starting on June 1, 2020, customers will be billed based on a new fixed Covid-19 Recovery Rate of 12.8 cents per kilowatt hour.
“While we make progress to contain this deadly virus, we know people will need to stay home when possible and businesses will need ongoing support as we gradually and safely reopen the economy,” said Premier Ford. “Providing additional rate relief, flexibility and customer choice will help ensure everyone can recover from this extraordinary crisis and get back to a life that is as normal as possible.”
The Covid-19 Recovery Rate will be in place until October 31, 2020, followed by a new customer choice initiative. Starting November 1, 2020, customers will be able to choose a plan that best suits their household and lifestyle with the option of either TOU electricity rates or tiered pricing, which will provide a set rate for electricity up to a certain level of consumption.
The statement said the government will continue to subsidize electricity bills by 31.8 per cent through the Ontario Electricity Rebate. The government is providing approximately $5.6 billion in 2020-21 as part of its existing electricity cost relief programs, to help ensure more affordable electricity bills for eligible residential, farm and small business consumers.
Quick Facts
- The new Covid-19 Recovery Rate is the Ontario Energy Board (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 and are comprised of three different rate periods of off-peak, mid-peak and on-peak pricing.
- Tiered electricity rates provide customers with a set rate for electricity up to a certain level of consumption. The rate increases for all electricity use that exceeds this threshold.
- The OEB sets both tiered and 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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