TORONTO — The Ontario Energy Board is lowering the price of electricity for households and small businesses effective on New Year's Day.
However, because the government will simultaneously reduce the Ontario Electricity Rebate, typical residential customer bills are expected to be held stable.
In an announcement late Tuesday, the OEB said it's able to lower prices because of a significant change in the cost of supplying electricity.
Under the 2020 Ontario budget, a portion of of costs currently funded by ratepayers will now be funded by the provincial government.
The resulting rate cut will be offset by a reduction in the Ontario Electricity Rebate (OER), from the current 33 per cent to 21 per cent on Jan. 1, 2021.
The OER is a pre-tax credit that appears at the bottom of electricity bills.
New Prices Effective Jan. 1, 2021 Current Prices
Winter Time of Use Off-Peak - 8.5 cents/kWh 10.5 cents
Winter Time of Use Mid-Peak - 11.9 cents/kWh 15.0 cents
Winter Time of Use On-Peak - 17.6 cents/kWh 21.7 cents
New Tiered pricing rates effective Jan. 1, 2021 Current Prices
Residential first 1,000 kWh/mo - 10.1 cents/kWh 12.6 cents
Non-residential first 750 kWh/mo - 10.1 cents/kWh
Residential over first 1,000 kWh - 11.8 cents/kWh 14.6 cents
Non-residential over first 750 kWh - 11.8 cents/kWh
Under the OEB's winter disconnection ban, electricity distributors are not permitted to disconnect residential customers for non-payment of bills between Nov. 15 and April 30.
Electricity prices went up by about two per cent for the average Ontario customer on Nov. 1, 2020.
