Ontario is set to decrease one of its main ratepayer rebates starting November 1, while also announcing a reduction in winter electricity pricing, according to the Ontario Energy Board (OEB). The Ontario Electricity Rebate (OER) provided by the Ford government will see a decrease from covering 23.5% of electricity costs for small businesses, households, and farms to 15.7%, as per the OEB’s recent news release.
The adjustment in the OER will result in a saving of about $23 for an average residential customer consuming 700 kilowatt-hours of electricity per month, compared to a saving of approximately $36 per month last year. The OEB mentioned that the decline in electricity prices under the Regulated Price Plan enables the reduction in the OER, ensuring that the overall rate of bill increase for customers remains consistent with previous years.
The OEB, operating as an independent Crown agency and regulatory body of the Ontario government, clarified that despite the rebate reduction, winter time-of-use pricing will also undergo a decrease starting November 1 until April 30, 2027.
During off-peak hours, which include weekdays between 7 p.m. and 7 a.m. and all day on weekends and holidays, rates will be 9.1 cents per kilowatt-hour. Mid-peak hours, from 11 a.m. to 5 p.m. on weekdays, will be charged at 14.6 cents per kilowatt-hour. On-peak periods, spanning 7 a.m. to 11 a.m. and 5 p.m. to 7 p.m. on weekdays, will cost 18.9 cents per kilowatt-hour. Last year’s prices were 9.8 cents for off-peak, 15.7 cents for mid-peak, and 20.3 cents for on-peak.
The government plans to continue targeted relief initiatives to aid low-income households in managing their electricity expenses. The average residential customer is expected to save nearly $275 annually through the OER, which was introduced in 2019.
Keith Brooks, the programs director for Environmental Defence Canada, expressed concerns over the government’s strategy to construct nuclear power plants and small modular reactors, anticipating significant costs for taxpayers. Brooks emphasized the importance of adopting cost-effective sources like wind and solar power supported by batteries to meet electricity supply needs.
Harvard University postdoctoral fellow Lewis Krashinsky highlighted the impact of the rebate reduction on public perception, emphasizing affordability as the top priority for Ontarians. Krashinsky noted that any shift in the perception of affordability due to policy changes could affect public sentiment towards the government.
In a bid to secure clean and affordable energy, the provincial government directed the Independent Electricity System Operator to ensure sustainable energy solutions for ratepayers. Despite ongoing concerns about rising electricity prices with the development of nuclear energy plants, the government aims to balance cost-effectiveness with sustainable energy solutions.