Ontario Electricity News

Electricity Rates Rise Due to Lower Demand

Ontario Energy Board - Apr 14, 2016

After years of encouraging energy conservation, the OEB blames the recent mild winter and resulting drop in electricity usage for the latest rate increases. On May 1, 2016 the on-peak rate increases by .5 cents per kWh to 18 cents per kWh. Mid-peak power increases by .4 cents to 13.2 cents per kWh. Off-peak electricity also increases by .4 cents to 8.7 cents per kWh.

Read the OEB Announcement

Electricity Rates Rise Again

Ontario Energy Board - Oct 15, 2015

The on-peak rate was increased by 1.4 cents per kWh from 16.1 cents to 17.4 per kWh reflecting an increase of over 8 1/2%. Given that this is a 6-month increase, this equates to an annualized increase of over 17%. The OEB has indicated that their pricing strategy is to discount the off-peak rate to give consumers an opportunity to save money by shifting their consumption to nights and weekends. Unfortunately, this stategy leaves small business holding the bag since they are not able to shift the time when their business is open.

Read the OEB Rate Increase Announcement

Electricity Rates Rise Again

Ontario Energy Board - April 21, 2015

In addition to increasing rates, yet again, the Ontario Energy Board has adopted a new policy of setting the peak rate at more than double the off-peak rate. On May 1, 2015 rates will increase an average of 4.6%. That's over 9% annualized. Ontario now has the distinction of having nearly the highest electricity rate among the provinces, second only to PEI which only produces electricity from wind and imports most of its power. The new peak rate increases to 16.1 cents/kWh, that's the price you will pay from 11:00 AM to 5:00 PM during the week unless you sign a contract with a supplier like Canada Energy that offers a fixed rate that does not vary by time of use.

Electricity Rates by Province

Renewable Energy Being Blamed for Ontario's Soaring Electricity Cost

Financial Post - Oct 29, 2014

The Financial Post writes about how the Ontario Power Authority pays above market rates for power to renewable energy producers and makes up this shortfall by charging all consumers a fee known as the Global Adjustment. Since 2007, the Global Adjustment has increased by 6 cents/kWh and has helped to push the commodity price up by 50% over just 7 years. The article goes on to say that wind and solar power contribute to 20% of the total commodity cost while producing only 4% of the electricity being used.

Read the full Financial Post Article

Merging Energy Agencies will not Result in Significant Cost Reductions

CBC News - Sept 21, 2014

Opposition leaders claim that the Liberal government's plan to merge the Independent Electricity System Operator (IESO) and the Ontario Power Authority (OPA) will not result in cost savings. The Ontario energy minister admitted that the plan will not result in many job cuts. Ontario hydro rates have skyrocketed over the past number of years due to many missteps. The latest concerns are related to the costs associated with the bloated salaries and pension plans of OPG, Hydro One and their subsidiaries. In 2013 there were 11,538 employees making over $100,000/year and there are 37,000 active and retired members in the pension plan. Taxpayers generously donate about $5 for every $1 the members contribute to their pension.

Read the full CBC article

Ontario Hydro Rates Increase Again on May 1

The Hamilton Spectator - Apr 17, 2014

The price of electricity is increasing for all usage periods starting on May 1, 2014. The price will increase by .6 cents/kWh to 13.5 cents during peak usage. For mid-peak and off-peak periods the price will rise by .3 cents/kWh. This will result in an overall increase of $2.83 per month for consumers using 800 kWh/month. Currently, the average homeowner pays $128 per month for hydro. This is expected to increase to $167 a month by 2016.

Read the full Hamilton Spectator Article

Businesses Struggle With Rising Ontario Hydro Rates

CBC News Ottawa - Jan 13, 2014

Consumers, businesses and Farmers are all struggling from the costs associated with continuous hydro rate increases in recent years and are worried about a projected 42% increase in hydro rates over the next five years. Currently, the average homeowner pays $125 per month for hydro. This is expected to increase to $167 a month by 2016.

Read the full CBC article

Measuring Inflation Based on Utility Bills

Journal of Commerce- Sept 12, 2013

Over the past 10 years the cost of power has increased by 46.6% in Ontario. Canada-wide the cost of power has increased by +32.6 during the last decade. If you only consider the past 5 years, Ontario has had the greatest increase in hydro rates of any province with a 5-year increase of 30.5% in electric power price.

Read the full inflation article

Regulated Electricity Rates Go Up Yet Again

Newstalk 610 - April 5, 2013

Ontario hydro customers who are not on an electricity contract will be paying more after the Ontario Energy Board announced it was hiking electricity rates starting May 1. The latest rate reflects an annualized increase of 5.8%, well beyond the general rate of inflation. According to the OEB, this works out to a $3.63 increase on the electricity line for the average monthly household bill.

RPP Rates Increase May 1, 2013

Ontario's Power Trip - A legacy of debt

Financial Post - Jan 17, 2013

According to this article in the Financial Post, each Ontario taxpayer is on the hook to the tune of $2,055 to cover their portion of the 17.9 Billion in capital costs racked up over McGuinty term in office. In addition to this, annual costs to pay for expensive wind and solar energy will come to 7.35 Billion a year. The article goes on to say "These costs have only just begun to show up on consumer bills, but they will dramatically rise in years to come. "

Read the full article about the McGuinty governments hydro legacy

Ontario Fit Program Turns 3 and Continues to Drive Up Electricity Rates

Financial Post - Sept 19, 2012

According to this article in the Financial Post, it is clear the Ontario Power Generation corporation's ability to temper rate increases will diminish in the future and Ontario's electricity bills will continue to rise. Ontario taxpayers will even foot the bill for reductions in Toronto's tax rates thanks to the fact that the City of Toronto has even gotten into the business of generating power since the rates paid to electricity generators are too good to pass up.

Ontario’s Power Trip: FIT Turns 3 Years Old

Ontario Energy Minister says rate increases will be necessary to pay for modern infrastructure

North Bay Nugget - July 23, 2012

Energy Minister Chris Bentley said this week that the province is working to help homeowners and businesses manage their electricity costs but escalating electricity costs are the price for a modern, clean and reliable system. Bentley said increases will be necessary to pay for modern infrastructure, new generation, conservation and renewable energy projects as the province moves forward with the phasing out of coal-fired plants.

Read full article about rising electricity rates

Mid and Peak Tier Time-of-Use Rate Rises 8% on May 1

Toronto Star - April 19, 2012

Ontario's RPP electricity prices during the mid-tier and peak use periods will rise more than 8 per cent on May 1, 2012. The OEB also announced that the off-peak price will increase by 4.8 per cent. After this increase, the energy board calculates that a consumer who uses 1000 kilowatt hours of electricity a month will pay about $5 per month more under the new rates. More than 80 per cent of Ontario consumers and small businesses are now on time of use billing, the energy board says.

Read full article about increasing hydro rates

Hydro Rates have More Than Doubled in Past 10 Years

North Bay Nugget - Apr 21, 2012

PC Energy Critic and Nipissing MPP Vic Fedeli blames Dalton McGuinty for the sky-rocketing electricity rates. Residential electricity prices for conventional metres have now doubled since 2003, from 4.3 cents per kilowatt hour to 8.8 cents. For those on time-of-use metres, the rates have increased an astounding 175%. According to a report from Aegent Energy Advisors, a residential homeowner with a monthly hydro bill of $110 will see a 58% increase over the next 5 years – amounting to a $768 annual increase by 2016.

Ontario Independent Electricity System Operator (IESO) Loses Money on Exported Power, Despite Their Clam to be Making Money on Exports

Financial Post - Dec 1, 2011

According to the Financial Post article, the IESO's claims that they profit by exporting power to Quebec and various US States at an average price of about 3.38 cents per kilowatt hour (kWh) are misleading. In actual fact, the real average price of electricity in Ontario through the first 10 months of 2011 was about 7 cents per kWh. This means that the province is effectively losing almost 4 cents on every kWh exported. This works out to a total year-to-date loss of $420-million.

Read full article about IESO Power Exporting Losses

Electricity Rates Rise Again As New RPP Rates Announced

CBC.ca; October 17, 2011

Electricity prices are going up by an average of 1.8 per cent for the average residential consumer using smart meters and over 4% for Ontario residents who are still on cumulative meters. The main causes of the increase, the board said, are "increased nuclear and renewable generation coming online."

Electricity Prices Rise for Ontario RPP Users

Ontario Electricity Generators Had to Pay $35 Million to Offload Surplus Power

CFRA Radio – July 25, 2011

During the first 6 months of 2011, there was 95 hours where there was too much power within Ontario's electricity grid so the electricity generators had to pay $35 Million dollars to have other jurisdictions take this off our hands. Contributing to this excess power is electricity produced from Wind and Solar energy for which the government pays up to 80.2 cents/kWh.

Read the full article

Ontario Electricity Prices Continue to Skyrocket

Digital Home – April 20, 2011

The Ontario Energy Board announced another 12 percent increase on top of increases last year that caused electricity bills to jump between 15 and 20 percent. Over the past three years, interval meter rates have soared by 55%. The on-peak rate for power used during weekdays effective May 1, 2011 is 10.7 cents/kWh.

Read full article about rising electricity rates

Ontario Power Generation Cost Increases on the Horizon

Financial Post – March 8, 2011

The OPG (Ontario Power Generation) is well-known for large megaprojects that go over budget. It has two big projects on the go at the moment, one of which is already $600 million over budget. OPG showed a profit in its 2010 annual report but that was only because its nuclear decommissioning fund had a market gain of $668-million. OPG, with hundreds of millions in unfunded pension and benefit liabilities, doesn’t make money on what it actually produces - electricity!

Read full article about the OPG Cost Crunch