Electricity Rate Decisions Imminent

October 17, 2014 – Two recent developments will impact electricity bills in the months ahead:

1)  The Ontario Energy Board (OEB) announced on October 16 that kWh charges for electricity customers are rising effective November 1, 2014, as part of the ongoing and upwards march of electricity prices in Ontario.

According to the information released by the Board, a household using 800 kWh of electricity a month, will see their monthly bill increase by @$2. Note that the cost of the electricity also coincides with the seasonal change to winter hours for on-peak, mid-peak, and off-peak prices. The new electricity rates apply only to households who buy their electricity directly from the utility, and don’t affect those who buy through an energy retailer (on a contract).

The OEB reviews electricity prices twice each year based on updated cost estimates. According to the OEB news release, this is intended to “smooth” changes in prices over time.

Note:
This change is separate and distinct from the pending adjustment to the rates Hydro One charges for electricity distribution (see below) which will impact all Hydro One customers for the period effective January 1, 2015 to December 31, 2019.

2)  In this distribution rates matter (known as rate hearing EB-2013-0416), FOCA, along with 17 other “intervenors” provided final comments on October 15, 2014, on behalf of our members.

FOCA’s primary objectives in this rate application were to minimize any expensive wholesale changes to customer rate classes, and to encourage the cost-effective and appropriate maintenance of the electricity grid in rural areas.

Decisions in this important hearing will be rendered within the next two 2 months. The OEB-approved distribution rates will take effect January 1, 2015.

Have complaints about your electricity bill or your local utility? You are not alone. Check out the Top 10 Electricity Utility Issues Raised with the OEB (2013)

Terry ReesElectricity Rate Decisions Imminent