Framework for Energy Innovation 2.0: Non-Wires Solution Incentives (Margin on Payments)

Case number
EB-2025-0083
Launched
Sector
Electricity
Status
Active
Details

The OEB is establishing a methodology for the setting of rates to include a margin on payments (MoP) incentive to use third-party distributed energy resources as non-wires solutions to meet an electricity distribution system need. Through proposed amendments to the Distribution System Code, the OEB intends to establish a default MoP value, as well as eligibility criteria and other requirements for electricity distributors applying for the incentive. 

Updates
Updates
Date Issue / Document
November 25, 2025

The OEB has issued final amendments to the Distribution System Code to establish a margin on payments incentive mechanism for distributors to use third-party DERs to meet a distribution system need. These amendments came into effect on November 25th 2025 and support Ontario’s economic growth by capitalizing on the value of DERs and incentivizing the use of innovative approaches to providing cost-effective service.
June 9, 2025

The OEB has received comments from the following stakeholders on the proposed DSC amendments that were issued on May 16, 2025:
May 16, 2025

The OEB has issued a Notice of Proposal to amend the Distribution System Code (DSC). The proposed amendments establish a methodology for the setting of rates to include a margin on payments incentive to use third-party distributed energy resources as non-wires solutions to meet an electricity distribution system need.
May 16, 2025

To assist with the development of the proposed DSC amendments, the OEB engaged a consultant to draft a report with recommendations on a default margin on payments value and options for eligibility criteria.