The Ontario Energy Board (OEB) is changing how distribution rates will be billed for residential customers. All Hydro One Networks’ residential customers, except for the customers in the Low Density (R2) rate class, are now being billed on an all-fixed monthly distribution charge. Customers in the R2 rate class will continue to have a volumetric distribution rate component until the end of 2031.*
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 transition started on February 1, 2016. To find your service type, please check your bill.
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Residential customers who live in the former service area of Norfolk Power – 4 years (2016-19)
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Residential customers who live in the former service area of Haldimand County Hydro – 5 years (2016-20)
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Residential customers who live in the former service area of Woodstock Hydro – 5 years (2016-20)
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Residential customers who live in the former service area of Orillia Power Distribution Corporation (completed by Orillia Power Distribution Corporation)– 4 years (2016-19)
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Residential customers who live in the former service area of Peterborough Distribution Inc. (completed by Peterborough Distribution Inc.) – 4 years (2016-19)
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Residential customers (year-round) with an urban high density – 5 years (2016-20)
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Residential customers (seasonal) with an urban high density – 8 years (2016-23)
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Residential customers (year-round and seasonal) with a medium density – 8 years (2016-23)
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Residential customers (year-round and seasonal) with a low density – 16 years (2016-31)*
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.
*Hydro One’s Low Density (R2) rate class will continue to have a volumetric distribution rate component until the end of 2031 as a mitigation measure for seasonal customers that moved into the R2 rate class.
**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.
