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 volumetric rates. Over the next three to seven years, distribution rates will gradually change so that all residential and seasonal customers will be billed an all-fixed monthly distribution charge.
After the transition to all-fixed distribution rates is complete, the Delivery line on the bill will be made up of a distribution flat charge ($/month), retail transmission rates (cents per kWh) and an adjustment for line losses*.
Transition to Fixed Distribution Rates Schedule
The OEB directed us to transition to fixed distribution rates as noted below. This started on February 1, 2016. To find your service type, please check your bill.
Residential customers who live in the former service area of Norfolk Power – 4 years (2016-19)
Residential customers who live in the former service area of Haldimand County Hydro – 5 years (2016-20)
Residential customers who live in the former service area of Woodstock Hydro – 5 years (2016-20)
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).
Fixed Rates and Your Bill
Most customers will not 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.
The Reason for Transitioning to Fixed 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 is no change in our costs to serve residential customers, regardless of their electricity use.
*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 are not used by your meter.