Other changes to your statement starting January 1, 2017
8% Provincial Rebate
The Ontario government will rebate an amount equal to the provincial portion of the HST from electricity statements as of January 1, 2017. This eight per cent rebate will provide electricity rate relief for residential households, farms and many small businesses. Customers will start to see this rebate on their statements covering electricity use on or after January 1, 2017.
Enhanced Rural or Remote Electricity Protection Program
The Rural or Remote Electricity Rate Protection (RRRP) program is designed to provide financial assistance to eligible customers located in rural or remote areas where the costs of providing electricity service to these customers greatly exceeds the cost of providing electricity to customers located in towns and cities. All customers in the province fund this program by paying an RRRP charge that is included under the Regulatory Charges line on the statement. The OEB is increasing this charge to 0.21 cents per kWh for 2017 (from 0.13 per kWh) to reflect the additional relief being provided to residential customers starting in 2017, as discussed below.
Residential customers with a service type of low-density will receive additional relief. The Rural or Remote Rate Protection credit is increasing by $29.00 a month (existing credit is $31.50 a month increasing to $60.50). Customers who are receiving this credit will see the following message on their statement starting in January:
Your delivery charge is reduced through Rural or Remote Rate Protection by $60.50 per month.
To find your service type, please check page two of your statement. It's shown next to "Your electricity charges."
For an explanation on the different service types, visit Service Types. More information on these initiatives will be included in your January statement.
Frequently Asked Questions
How will my bill change?
The approved bill impacts are
shown here for a typical customer, a low-user and a high-user of electricity for residential and general service energy billed customers. For your convenience, we have also shown the impact of the eight per cent Ontario rebate. To find your service type and how much electricity you use, please check page two of your statement. It's shown next to "Your electricity charges."
Why are delivery rates changing?
Our first priority is to deliver electricity to our customers safely, reliably and efficiently. The reasons why delivery rates will change are as follows:
We need to reflect the cost of providing distribution service in 2017, as approved by the OEB
We need to update retail transmission rates (included under the Delivery line on the statement) to reflect the current uniform transmission rates. For most customers, this will result in a slight decrease in rates.
We need to increase the Rural or Remote Rate Protection credit to $60.50 a month (from $31.50) for residential customers with a low density service type
We need to implement the second step of the phase-in to all fixed distribution rates for residential customers
Why is this move to fixed distribution rates happening?
Distribution charges are currently a blend of a fixed service charge and volume charge. Distribution rates for residential customers will become an entirely fixed monthly service charge by 2019-23, depending on your service type (see question below for more information).
The OEB decided to move to fixed distribution rates for the following reasons:
A fixed distribution charge creates more stability on bills for customers.
A fixed distribution charge shows customers that distribution costs are largely fixed when it comes to providing service to residential customers.
A fixed charge also benefits high electricity consumers such as those in less energy-efficient homes, or those with electric baseboard heating. This is because currently they are paying a bigger share of the distribution system costs as a result of their high electricity use.
When will my distribution rates change to all fixed rates?
The OEB has directed us to transition to fixed distribution rates, as noted below. To find your service type, please check page two of your statement. It's located next to "Your electricity charges."
Urban High Density Residential Customers (5 years from 2016-20)
Medium Density Residential Customers (8 years from 2016-23)
Low Density Residential Customers (8 years from 2016-23)
Seasonal Rate Class Customers (8 years from 2016-23)
With the transition to all fixed rates, how much is the fixed charge increasing?
Please refer to the table below. To find your service type, please check page two of your statement. It's located next to "Your electricity charges."
While the fixed distribution service charge shown in the table below is gradually increasing, the volume charge is decreasing each year and by the end of the phase-in period, it will be eliminated.
How will the move to fixed distribution rates affect my statement?
Most residential customers won't see a significant change in their distribution rates due to the move to fixed distribution rates. Customers who use very little electricity will see an increase on their statement, while customers who use a lot of electricity will see a decrease on their statement. Customers who have electric heat will benefit from this move to fixed rates.
Does Hydro One set delivery rates?
Hydro One, like other distributors, must apply to the OEB to change the rates that it charges for electricity delivery. The OEB sets delivery rates after reviewing Hydro One's application and holding a hearing where interested parties can intervene. The OEB sets rates for electricity delivery, transmission and other charges. The OEB also sets Time-of-Use and Tiered electricity prices for Regulated Price Plan customers.
When will the OEB approve distribution rates?
The OEB approved our distribution rates on December 21, 2016. The new rates will be effective on January 1, 2017.
How do I know if I'll receive a credit for being a rural customer?
Only customers who have a service type of residential low density receive the credit for Rural or Remote Rate Protection. You can check your service type by looking at page two of your statement. Customers who receive this credit will see a bill message on their January statement confirming the enhanced amount of the credit.
What is the amount of the RRRP credit?
The credit has increased to $60.50 (from $31.50) per month and will lower the distribution charge by $29 per month for residential customers with a low density service type. Customers who receive this credit will see a bill message on their January statement confirming the enhanced amount of the credit.
How is the increase in the RRRP credit being funded?
The charge is funded by all electricity users. This charge is included under the Regulatory Charges line on your statement. The OEB has increased the charge to 0.21 cents per kWh (from 0.13 cents).
What is the 8% Provincial Rebate?
The Ontario government is reducing electricity costs by rebating an amount equal to the provincial portion of the HST on your monthly hydro statement. That's an 8% rebate for Ontario families, farms and small businesses. This is part of Ontario's plan to help people with the cost of everyday living by reducing electricity costs.
What is included in the 8% Provincial Rebate?
Electricity, Delivery, Regulatory Charges and the Debt Retirement Charge (if applicable) will be reduced by the 8% rebate. HST and any additional charges that may appear on the statements like late payments, equipment rentals, or provision of other services are excluded.
When will I see the 8% Provincial Rebate on my statement?
You won't see it on your statement until January. The rebate is for electricity used on and after January 1, 2017.
Who is eligible for the 8% Provincial Rebate?
Residential customers, farms and small businesses are eligible.
I have a multi-residential property. Am I eligible for the 8% rebate?
As long as your property meets one of the following, you'll receive the rebate. You'll need to complete a declaration form, if we don't have a declaration form on file for you.