You can expect to see your hydro bill go down starting Monday -- as long as you are still connected to the grid.
The Ontario Energy Board (OEB) says electricity prices are dropping for off-peak, mid-peak, and on-peak times as of May 1, 2017.
The OEB estimates that the total monthly bill for a "typical residential customer" who uses 750 kWh per month will drop by about $26 to an average of $127 -- that's 17% lower than it would have been if the rates weren't cut.
The factors that prompted the cuts include:
- The 8% rebate, equivalent to the provincial portion of the HST, that has been in effect since January 1, 2017
- The OEB's decision to remove the charge that pays for the cost of the Ontario Electricity Support Program (which will still be available for eligible low-income customers)
- A portion of the bill reduction that was announced in the provincial government's proposed Ontario Fair Hydro Plan
The table below outlines the prices that were in effect prior to May 1 compared with what the prices would have been without taking the proposed Fair Hydro Plan into consideration. It also includes a column with the prices that are now in effect (on the far right).
(Table courtesy of the Ontario Energy Board)
The OEB says current hydro rates could be cut again later this year if the provincial government passes the proposed Fair Hydro Plan. The plan is expected to take effect this summer.
While rates are being cut Monday, the OEB is also lifting its ban on winter disconnections.
But that does not mean your power will be cut off right away if you are behind on your payments.
According to the OEB, customers need to receive ten days notice before their electricity can be cut off and they need to be notified of payment options.
The OEB says it also expects utilities to reconnect customers within two business days of receiving a payment or agreeing to a payment arrangement.
