Moving to Fixed Distribution Rates
The Ontario Energy Board (OEB) is changing how distribution rates will be billed for residential customers. Currently, distribution rates are a blend of fixed and variable rates. Over the next four to eight years (depending on your service type), the rates will gradually change so all residential and seasonal customers will be billed an all-fixed monthly service charge.
How Delivery rates are currently calculated
The Delivery line on your bill is made up of distribution and transmission charges and the cost for line losses.*
After the transition to all-fixed distribution rates is complete, the Delivery line on the bill will be made up of a distribution service charge ($/month), retail transmission rates (cents per kWh) and the cost for line losses.*
* When electricity is delivered over a power line, it is normal for a small amount of power to be consumed, or lost, as heat. An OEB-approved adjustment factor is used to calculate the line losses in the electricity system that aren’t measured by your meter.
What is the schedule to transition to fixed distribution rates?
The OEB had directed us to transition to fixed distribution rates as noted below starting on February 1, 2016. To find your service type, please check page two of your bill.
- Residential customers who live in the former service area of Norfolk Power – 4 years (2016-19)
- Residential customers with an urban high density – 5 years (2016-20)
- Residential customers with a medium density – 8 years (2016-23)
- Residential customers with a low density – 8 years (2016-23)
- Seasonal customers – 8 years (2016-23)
How will the move to fixed distribution rates affect my bill?
Most customers won't see a significant change in their distribution rates. Customers who use very little electricity will see an increase on their bill, while customers who use a lot of electricity will see a decrease on their bill. Customers who have electric heat and/or air conditioning will benefit from this move to fixed rates.
Why is the OEB moving to fixed distribution rates?
The OEB's policy to move to fixed distribution rates for residential customers is a fairer and more transparent way to recover the costs related to distribution. There's no change in our costs to serve residential customers, regardless of how much electricity they use.