Toronto, ON - October 15, 2015 – Today the Ontario Energy Board announced new electricity prices. The new prices will apply to most households and small businesses starting November 1.
When the prices change, the hours for mid-peak and on-peak prices also change to the winter time-of-use hours. The lowest-priced, off-peak period remains from 7 p.m. to 7 a.m. on weekdays and all day weekends and holidays.
This chart outlines time-of-use prices and the times they are effective as of November 1, 2015:
|
Category |
Time(s) – Winter (Nov 1 – Apr 30) |
Price |
Change |
|---|---|---|---|
|
Off-peak |
Weekends from 7pm – 7am |
8.3¢/kWh |
(+0.3¢) |
|
Mid-peak |
Weekdays 11am – 5pm |
12.8¢/kWh |
(+0.6¢) |
|
On-peak |
Weekdays 7am - 11am and 5pm – 7pm |
17.5¢/kWh |
(+1.4¢) |
The price is increasing by approximately $4.42 per month on the “Electricity” line, and about 3.4% on the total bill, for a household that consumes 800 kWh per month.
Increased costs from Ontario Power Generation’s (OPG) nuclear and hydro-electric power plants make up about 40% of this increase. Costs from renewable generation sources are another driver, representing about one-third of the increase.
The off-peak price remains less than half the on-peak price. This means customers who shift use to evenings and weekends save 9¢ per kWh. The typical Ontario TOU household uses about two-thirds of its power during off-peak hours, and the off-peak price remains largely unchanged.
Through recent OEB consumer research, Ontarians have signaled a need for pricing that provides greater incentives to conserve. Giving customers incentives and opportunities to manage their bills by shifting their time of electricity use is a key objective of the OEB’s price plan.
Household consumption has been declining and successful conservation programs are likely a contributing factor. While the OEB continues to use 800 kWh per month for comparison purposes, actual consumption, particularly in large urban centres, is declining. Over the last three years, average residential consumption in the greater Toronto area and other larger cities has been about 700 kWh per month. The change for these customers is a $3.86 per month increase to the ‘Electricity’ line, assuming a typical TOU consumption pattern.
The OEB reviews electricity prices twice each year based on updated cost forecasts and they are designed to recover the actual cost of electricity.The forecast includes a number of variables, like estimated changes in the total cost of power from Ontario’s diverse electricity supply. Key elements of the Independent Electricity System Operator’s outlook for the power system over the next 18 months, such as forecasts of electricity demand and of new generation sources coming online, are also factored in.
These electricity price changes reflect changes in the cost of electricity for RPP customers. They do not affect the cost of transmission or distribution reflected in the Delivery line, nor do they alter the Regulatory Charges or Debt Retirement Charge on people’s bills.
Quick facts:
- Time-of-use prices encourage consumers to use power when prices are lower.
- These price changes only affect households and small businesses that buy their electricity from their local utility and have a smart, or interval, meter. Customers who have signed a contract with an electricity retailer do not pay these prices.
- Regulated Price Plan TOU prices for November 1st are set to recover the forecast cost of power.
- The typical Ontario TOU household uses about two-thirds of its power during off-peak hours, and the remainder in near equal amounts during mid-peak and on-peak times.
- For those customers who remain on “Tiered Pricing”, winter price information is available in the OEB’s Backgrounder.