Ontario Electricity Rates Jump 29%, but Bigger Rebate to Help Offset Costs
Electricity prices in Ontario went up about 29 per cent on Saturday, but the provincial government says a larger rebate program will help balance out the increase for most households.
According to a report from the Ontario Energy Board (OEB), the main reasons for the price hike are higher-than-expected nuclear energy costs and more spending on energy conservation programs.
Ontarians can choose from three different electricity pricing plans, and all of them are now more expensive:
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Time-of-Use Plan:
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Off-peak: 9.8¢/kWh (up from 7.6¢)
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Mid-peak: 15.7¢/kWh (up from 12.2¢)
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On-peak: 20.3¢/kWh (up from 15.8¢)
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Tiered Plan:
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First 1,000 kWh: 12¢/kWh (up from 9.3¢)
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Over 1,000 kWh: 14.2¢/kWh (up from 11¢)
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Ultra-Low Overnight Plan:
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Overnight: 3.8¢/kWh (up from 2.8¢)
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Mid-peak: 15.7¢/kWh (up from 12.2¢)
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On-peak: 39.1¢/kWh (up from 28.4¢)
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The Ontario Electricity Rebate will rise from 13.1% to 23.5% to help ease the impact of these higher rates. For a typical home that uses 700 kilowatt-hours per month, the rebate will cut about $36 from the electricity bill.
The rebate appears as a credit on the bills of households, small businesses, and farms. Customers don’t need to take any action to stay on their current plan, but those wanting to switch must contact their utility company.
However, some experts warn that using government subsidies to lower electricity bills just shifts the cost to taxpayers.
The Ontario Clean Air Alliance, which opposes nuclear power, said the government is “hiding” the real cost of electricity by increasing the rebate.
“This is a band-aid solution that doesn’t fix the main problem — our dependence on expensive nuclear power,” the group said. “Ontario taxpayers are already paying billions each year to keep rates low, and that cost is only going up.”
