On April 23, the Ontario Minister of Energy announced that the province intends to take the Debt Retirement Charge (DRC) off residential electricity bills, saving the typical homeowner $5.60 per month, after Dec. 31, 2015. The DRC was instituted in 1999 to assist with paying down debt left over after the breakup of the former Ontario Hydro.
Bob Chiarelli, the Ontario Minister of Energy, said, “We’re helping Ontarians with the costs of investing in a cleaner, more reliable electricity system. We’re doing our part to help families worry less about how to pay for electricity.” The DRC would remain on all other electricity users’ bills, including large industrial users, until the residual stranded debt is retired – this is estimated to occur by the end of 2018, which is in line with the previously estimated date range published in the 2013 Ontario Economic Outlook and Fiscal Review.
The province is also working with the Ontario Energy Board to develop the new Ontario Electricity Support Program to help make electricity more affordable for low-income families. After Dec. 31, 2015, eligible low-income Ontarians could expect to receive similar relief as currently provided by the Ontario Clean Energy Benefit.