Ontario’s Fair Hydro Plan has introduced new measures to lower electricity bills by 25 per cent on average for residential consumers. As many as half a million small businesses and farms are also benefiting from the plan. These measures include the 8 per cent rebate introduced in January 2017 and build on previously announced initiatives to deliver broad-based rate relief on all electricity bills. The plan also holds any increases to electricity bills to the rate of inflation for four years.
Lower-income Ontarians and those living in eligible rural and Northern communities are receiving even greater reductions, as much as 40 to 50 per cent. Taken together, these changes are delivering the single largest reduction to electricity rates in Ontario’s history.
Ontario’s Fair Hydro Plan (OFHP) includes:
Refinancing a portion of the Global Adjustment (GA) over a longer time period to ensure greater fairness for today’s and future ratepayers. Electricity consumers that are eligible for the 8 per cent rebate are also eligible for GA refinancing, including all residential consumers, farms, most small businesses, long-term care homes and condominiums.
Expanding the Industrial Conservation Initiative (ICI) to include electricity consumers in the manufacturing and greenhouse sectors with an average monthly peak demand of greater than 500 kW and less than 1 MW.
Shifting cost recovery for Rural or Remote Rate Protection (RRRP) and Ontario Electricity Support Program (OESP) from electricity bills to provincial revenues, lowering regulatory charges for everyone by approximately $3/MWh.
Improving sector efficiency and modernizing Ontario’s electricity market, building on the collaboration of the Independent Electricity System Operator (IESO) and the Ontario Energy Board (OEB).