Changes announced on March 2, 2017
Ontario introduced plans to lower costs and balance customer delivery charges on electricity bills starting this summer:
- Lower Global Adjustment charges by 20 per cent
- Limit any bill increase to maximum of inflation rate for 4 years
- Lower medium and low-density customer delivery charges (R1, R2, GS, farm, small rural business)
- Introduce an Affordability Fund to help customers in need, and
- Introduce a First Nations electricity rate
The changes will impact Rural, Northern and fixed-income Residential customers and small businesses. Bills won’t increase beyond the rate of inflation for at least four years.
- All residential and small business customers will see a 29% reduction in the electricity commodity line, equal to the GA reduction, the HST equivalent rebate, and removal of social assistance program costs
- Rural medium density (R1) customers will also see an average decrease of 22% in combined delivery charges to align with the provincial average
- Rural low density (R2) customers will also see an average decrease of 44% in combined delivery charges to align with the provincial average
- Rural customers will see further delivery charge declines if they use more electricity than the average Ontario customer in their service class.
- Customers facing acute hardship will have greater access to support programs
For more information, download OFA’s electricity bill reductions document.