Seasonal Rates

keeping you informed on the oeb's direction to eliminate the seasonal rate class.
photo of two Muskoka chairs on a dock in Ontario

The Ontario Energy Board (OEB) has directed Hydro One to eliminate the seasonal rate class as early as January 1, 2023. Seasonal customers will be moved to one of our three residential density-based classes:

  1. Residential - Urban High Density

  2. Residential - Medium Density

  3. Residential - Low Density.
     

OEB Decision

The OEB issued its Decision and Order on Implementing the Elimination of the Seasonal Rate Class on November 10, 2021.
  

What happens next

We’ll incorporate the findings of the OEB Decision into the design and setting of new delivery rates as part of our 2023-2027 Joint Rate Application, which is currently before the OEB. 

As well, we’ll send a letter to seasonal customers in 2022 to let them know which of the three residential rate classes their account will be moved to when the seasonal rate class is eliminated by the OEB. The earliest the seasonal rate class will be eliminated is January 1, 2023.


Do you qualify for lower delivery rates?

If you live at your seasonal property at least four days a week for eight months of the year, please complete and submit a declaration form for year-round residential rate status. If you qualify for year-round residential rate status, you’ll qualify for subsidies* that will reduce the amount you pay for delivery charges.
 

*Distribution Rate Protection provides a cap of $38.08 on the monthly service charge and distribution volume charge for customers with a medium or low density rate class. Rural or Remote Rate Protection applies to customers in the low density rate class. It reduces the monthly service charge by $60.50 a month.

Learn more about the OEB's decision to eliminate the seasonal rate class here.


Standing Up for Customers

We have an important responsibility to stand up for our customers. This includes engaging them on the things that matter to them - such as safety, reliability and affordable rates.

Since 2015, following direction from the Ontario Energy Board (OEB) to develop a report on eliminating the seasonal rate class, we’ve been highlighting our concern with this approach and communicating the impact this would have on our seasonal customers. On July 19, 2019, we submitted an updated report to the OEB which demonstrates that eliminating this rate class would have a negative effect on more than half of our seasonal customers, resulting in a significant increase to their bills.

We have presented an alternative solution that would protect the majority of seasonal customers that do not qualify for the subsidies available for year-round residents.

Here's what you need to know

What would the elimination of the seasonal rate class mean for our seasonal customers?



*The OEB states that Hydro One cannot increase customer’s bills more than 10% per year. Therefore, Hydro One regularly ‘migrates’ customers to their new distribution rate incrementally until they are paying their new rate in full.


Our proposed solution

The OEB has directed that we gradually migrate some rates classes, including seasonal, to an all-fixed monthly distribution charge, which will also address the concern about some customers paying more than their share of costs. Seasonal customers were directed to be migrated to all-fixed rates by 2024.


Our proposal suggests keeping the seasonal rate class intact and protecting high volume customers through a cap until this date.

Our proposed solution would protect most of our seasonal customers from an annual rate increase of almost $1,000 a year.

Learn more about our alternative solution by reading our report to the OEB here.

We intend to continue advocating on the behalf of our customers and keeping them informed throughout this process.



FAQ

Why is the OEB eliminating the seasonal rate class?

The Ontario Energy Board could best answer the specifics about why this direction was given, however it is our understanding that the OEB is concerned that seasonal customers who are high users of electricity are paying a larger share of costs.

We believe that our solution addresses the OEB’s concerns, while also protecting more than half of our seasonal customers from steep bill increases.

How can I find out how much my bill will increase?
Do either proposals provide any financial benefit to Hydro One?
If 54 per cent of seasonal customers will see an increase in their bill as a result of eliminating this rate class, what will be the impact for the remaining customers?



We're here to answer any questions you may have about Seasonal Rates.

Call us at 1-888-664-9376. Our Customer Care Centre is open
Monday to Friday from 7:30 a.m. to 8:00 p.m.