Ontario will be reducing a key ratepayer rebate starting from November 1, as announced by the Ontario Energy Board (OEB). The Ontario Electricity Rebate (OER) provided by the Ford government will see a decrease from covering 23.5% to 15.7% of electricity costs for small businesses, households, and farms, according to the OEB’s recent news release.
This adjustment will result in an approximate $23 reduction in bills for the average residential customer consuming 700 kilowatt-hours per month, compared to the previous $36 reduction. The OEB explained that the decrease in the OER is possible due to the declining electricity prices under the Regulated Price Plan, which will maintain a consistent rate of increase in customer bills over the years.
Despite the reduction in the rebate, there is good news for consumers as winter time-of-use pricing will also be lowered effective November 1 until April 30, 2027. During off-peak hours on weekdays from 7 p.m. to 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, while on-peak periods, between 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.
The province’s efforts to support low-income households with electricity bills will continue through targeted relief, as stated by a spokesperson for the Minister of Energy and Mines, Stephen Lecce. The ongoing reduction in electricity costs for Ontario families is part of the government’s strategy amidst the significant energy buildout currently in progress.
Meanwhile, Keith Brooks, the programs director for Environmental Defence Canada, raised concerns about the government’s plan to invest in nuclear power plants and small modular reactors, emphasizing the potential financial burden on taxpayers. He suggested focusing on more cost-effective and sustainable sources like wind and solar power supported by batteries to align with global trends.
In response to these changes, the government is set to import electricity from New York state this winter to address operational needs, following recent trade-related discussions. The ongoing developments in Ontario’s energy sector are closely monitored, with affordability remaining a top priority for Ontarians, according to experts analyzing the impact of these policy shifts.
