Residential (year-round) customers with a medium
or low density are partially protected from a rate increase due to government subsidies.
Residential (year-round) customers with a medium
or low density receive Distribution Rate Protection, which is a subsidy that caps the amount
customers pay for base distribution rates (monthly service charge and distribution volume
charge) to $42.88 a month. However, this rate protection doesn’t include increases to
transmission rates for the high-voltage system.
As well, residential (year-round) customers with a
low density receive Rural or Remote Rate Protection which reduces the monthly service charge by
$60.50 per month.
Distribution rate protection ensures rural
delivery rates are comparable to urban rates.
It's a cap that lowers base distribution
rates (monthly service charge and distribution volume charge that are included under the
Delivery line).
This cap ensures base distribution charges will
not exceed $42.88 a month and only applies to residential (year-round) customers with a medium
or low density rate class.
Rural or remote rate protection provides financial
assistance to customers living in rural or remote areas where the costs of providing electricity
is higher than the cost of delivering electricity to customers living in urban areas. This
subsidy reduces the monthly fixed service charge included in the Delivery line by $60.50 per
month.
This is a portion of the regulatory charges line item on the bill. This OEB-approved charge is designed to reduce costs for eligible customers located in rural or remote areas where the costs of distributing electricity is higher. This charge is paid by all electricity consumers in the province to fund rural or remote rate protection that residential (year-round) with a low density receive. The new charge is 0.06 cents per kWh (from 0.15 cents per kWh), effective January 1, 2026.
The OEB directed us to transition to all-fixed
distribution rates for residential customers starting on February 1, 2016. Distribution rates
for customers who are still transitioning to all-fixed distribution rates are a blend of fixed
and volumetric rates. Once the transition is complete, customers will be billed a fixed monthly
distribution charge.
- Residential customers with an urban density – completed in 2021
- Residential customers with a medium density – completed in 2024
- Residential customers with a low density – will be completed in 2032
- Residential customers who live in the former service area of Norfolk Power – completed in
2019
- Residential customers who live in the former service area of Haldimand County Hydro –
completed in 2020
- Residential customers who live in the former service area of Woodstock Hydro - completed in
2020
Our regulator, the Ontario Energy Board approved the rates that we charge for electricity transmission and distribution over a five-year period, beginning January 1, 2023 and for each subsequent year through to December 31, 2027. These rates are reflected on the Delivery line on bills. We’re following the OEB’s multi-year rate-setting approach. Our rates will be adjusted at the beginning of each year (2024-2027), consistent with the OEB’s approval. Rates for the years 2024 to 2027 are formulaic rate increases that are tied to inflation and other factors intended to promote efficiency.
Delivery charges are made up of the following items:
- Distribution rates are designed to recover our costs for the poles, wires, meters, stations
that are used to deliver electricity to your home or business, as well as the costs related
to meter reading, billing, and customer service. Distribution rates include:
- a monthly service charge that does not change no matter how much electricity you use,
and
- a distribution volume rate that varies based on how much electricity you use (this rate
only applies to customers in low density residential rate class and to non-residential rate
classes).
- A smart meter entity charge of $0.42 per month that we collect on behalf of the IESO. This
charge is effective until December 31, 2027 and only applies to residential and general
service energy-billed customers.
- Cost or credit adjustments (also known as rate riders) – adjustments to reconcile for costs
or surpluses incurred while providing electricity to customers.
- Transmission rates recover the costs to operate and maintain the high-voltage transmission
system and vary based on how much electricity you use.
- An adjustment for line losses for low-volume customers.
Delivery rates are posted here.
