What is the amount of the 1% reduction to my rates?
The 1% rate reduction will be applied to the Delivery line on your bill until October 30, 2020. For residential customers, this results in a rate reduction of $0.27 per month to the monthly service charge and a reduction of 0.005¢ per kWh to the distribution volumetric rate.
Please refer to the
rate schedule for the former Woodstock Hydro to see the reduction to distribution rates for other rate classes. The credits are shown as a Rate Rider per Hydro One Networks’ Acquisition Agreement ($/month) and Rate Rider per Hydro One Networks’ Acquisition Agreement (cents/kWh or $/kW). To determine your rate class, please check page two of your bill.
Why are my rates changing to fixed distribution rates?
The OEB directed all utilities to move to fixed distribution rates for residential customers starting in 2016. We are now implementing the fourth year of a five-year phase-in and by 2020 residential customers will only be billed a fixed monthly service charge for distribution rates. Currently, customers are billed a fixed monthly service charge and a distribution volumetric rate that varies based on how much electricity is used. To see your rates, please scroll down.
How will the move to fixed distribution rates affect my bill?
Most residential customers will see only a small change to the Delivery line. The fixed service charge has increased by $3.37 and the distribution volumetric rate has decreased by 0.435¢ per kWh. Residential customers who use a lot of electricity (for example, those who heat with electricity) will see their distribution charges go down; customers who use little electricity will see their distribution charges go up.
The charges for the electricity you use (reflected on the Electricity line on your bill) are not impacted by the move to fixed distribution rates.
What’s included in the Delivery line?
Delivery charges are made up of the following items:
Distribution rates which 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 volumetric rate that varies based on how much electricity you use.
Low Voltage Service Rate varies based on how much electricity you use.
A Smart Meter Entity charge of $0.57 per month that we collect on behalf of the IESO. This charge is effective until December 31, 2022 and only applies to residential and general service energy-billed customers.
Cost or credit adjustments (also known as rate riders) – can be either a charge or credit that is incurred for providing electricity to customers that has not been recovered or refunded through rates. These adjustments are to reconcile the difference between what was forecasted and what was actually paid by customers. Most adjustments are pass-through costs that Hydro One has no control over.
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.
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