THUNDER BAY – A combination of an increase in electricity rates and a reduction in the Ontario Electricity Rebate will result in a slight increase to the average hydro bill.
New electricity rates announced by the Ontario Energy Board will take effect today and will result in an increase of 6.2 per cent. Combined with a reduction to the Ontario Electricity Rebate from 19.3 per cent to 13.1 per cent, customers under the Regulated Price Plan, which includes most households, small businesses, and farms across the province, will see an approximate $1 increase on their hydro bill.
Andy Armitage, Synergy North's vice-president of customer care and strategic planning, said the bill is made up of kilowatt hour usage and fixed costs.
"The fixed costs are not changing," he said. "The kilowatt hour portion of the bill is decreasing slightly and then the rebate that applies to the total bill is increasing slightly. It will result in mostly a minimal impact."
Armitage said the energy board determines the cost of power based on demand and supply in Ontario.
"That changes on a yearly basis and is dependent on the market conditions," he added.
Armitage said the updated rates include adjustments to time-of-use, ultra-low overnight, and tiered pricing plans for residential and small business customers.
Winter time-of-use hours and a revised usage threshold for residential customers on the tiered pricing plan will also come into effect.
"Customers have the option to select their pricing plan based on their usage patterns," he said.
"The (time-of-use) and (ultra-low overnight) plans offer varying rates depending on the time electricity is used, while the tiered plan bases costs on monthly electricity consumption levels. Customers who are satisfied with their current plan do not need to take any action and will remain on their existing choice."
Sandi Kriasowski is a Local Journalism Initiative Reporter with the Chronicle-Journal.
