Hydro Rates are Changing May 1, 2021
Hydro Rates are Changing May 1, 2021
May 3, 2021
On March 25, 2021 the OEB issued its Decision and Rate Order approving Milton Hydro’s 2021 distribution rates effective May 1, 2021.
The Impact of the OEB’s decision on a Residential customer consuming 750 kWh is $1.36 per month, and a General Service < 50 kW customer consuming 2,000 kWh is $3.03 per month. The increase does not factor in the change in applicable taxes or the Ontario Electricity Rebate.
In addition, on April 22, 2021 the OEB announced the new Time-of-Use (TOU) and Tiered prices which will come into effect on May 1, 2021 for residential and small business customers under the Ontario Energy Board’s (OEB) Regulated Price Plan (RPP). The summer TOU hours, as well as the summer Tier threshold for residential customers, are also effective May 1, 2021.
About TOU and Tiered Pricing under the RPP
The OEB normally reviews TOU and Tiered prices every six months and resets them if necessary – typically on May 1 and November 1 – based on an estimate of how much it will cost to supply RPP customers with the electricity that they are expected to use.
RPP prices are set based on a forecast of how much it will cost to supply RPP customers with the electricity they are expected to use over the next 12 months. Any variance between forecast and actual costs, whether a surplus or shortfall, is factored into the next price-setting. Prices are going down due to a surplus that has accumulated.
TOU and Tiered prices are set so that both recover the same forecast average cost of supply for a typical customer.
Ontario Electricity Rebate
The Government is also decreasing the Ontario Electricity Rebate (OER) from 21.2% to 18.9% effective May 1, 2021. The Government’s intention is that, for residential and small business customers, the reduction in the electricity price will be offset by the change in the OER. The OER is a total pre-tax credit that appears at the bottom of electricity bills. As a result of lower RPP prices and the reduced OER, typical residential customer bills will be held stable.
Understanding electricity bills
Electricity prices are shown on the Electricity line of the bill. This is the cost of the electricity used in the customer’s home or small business.
Milton Hydro delivers power to our customers’ homes and businesses and we are not allowed to earn any profit from the sale of electricity. Milton Hydro recovers its operating costs and an appropriate level of return through distribution rates that are approved by the OEB and reflected on the Delivery line of customer bills. Visit our Understanding your electricity bill page for a more detailed explanation of the different line items on electricity bills.
Power is personal
Residential and small business customers can choose their pricing plan, either TOU or Tiered. Customers are not required to select a price plan but if they wish to switch, they must notify Milton Hydro by completing the online election on the customer portal. Customers who have not registered on the customer portal can obtain an electronic form and complete it and email to Milton Hydro. Milton Hydro’s customer portal provides a comparison to help customers who may be considering a switch in their electricity price plan. For more information, visit Milton Hydro’s Regulated Price Plan Customer Choice webpage.