ONTARIO NEWS

Ontario is helping make electricity more affordable for families, the Ministry of Energy said in an announcement March 26, by removing the Debt Retirement Charge for all residential consumers and by introducing a new, Ontario Electricity Support Program for low-income families.

          The proposed program, administered through the Ontario Energy Board, would come into effect on January 1, 2016 and would help low-income Ontarians by providing them with financial assistance. Low-income households spend as much as 10% or more of their income on electricity bills, the Ministry notes, while consumers in the highest income bracket typically spend 2% or less.

          The announcement explained that qualifying individuals could be eligible for a $20 to $50 monthly credit based on the size of the household and income. Eligibility is based on two criteria, household income and household size. For example, a family of four with an annual income of less than $28,000, would be eligible for a $38 monthly credit – a total of about $455 per year (see table). In addition, the Debt Retirement Charge for all residential consumers will be removed from the bill.

          The proposed Ontario Electricity Support Program (OESP) would be ratepayer funded with an estimated charge of less than one dollar a month for a typical residential customer in 2016. The implementation of the Ontario Electricity Support Program would follow the end of the Ontario Clean Energy Benefit on December 31, 2015. The Ontario Clean Energy Benefit started in 2011 for a five-year term and provides approximately $1 billion in relief to eligible consumers annually.

          Development of the new support program began with a Minister’s letter to the Ontario Energy Board, dated April 23, 2014, in which he sought recommendations on a program design that would offer ongoing, and on-bill, rate assistance. The program’s proposed monthly credit and eligibility structure are as recommended by the OEB.

          At the same time as announcing the program, Ontario Energy Minister Bob Chiarelli also gave notice that ratepayers can expect a general increase in rates over the coming year. He said the rise is expected to be less than $10 a month per household. It’s not clear at this point if the government plans to draw any connection between the new assistance program and the general price increases anticipated.

          Ontario has several other assistance programs:

• Low-Income Energy Assistance Program (LEAP):

Helps electricity and natural gas customers with limited financial resources.

• saveONenergy Home Assistance Program:

Assists low-income participants with upgrading the electrical efficiency of their households at no cost to participants.

• Ontario Energy and Property Tax Credit (OEPTC)

Helps low- to moderate-income individuals and families with the sales tax they pay on energy and with property taxes.

• Northern Ontario Energy Credit (NOEC)

A refundable tax credit for low- to middle-income individuals and families living in northern Ontario, effective for 2010 and subsequent years.

• Ontario Clean Energy Benefit (OCEB)

Helps Ontario families, farms and small businesses through the transition to a cleaner, modern electricity system by providing a 10 per cent rebate on applicable electricity charges and taxes (limited to the first 3,000 kilowatt hours consumed each month).

• Rural and Remote Electricity Rate Protection

This charge is used to partly offset the higher cost of providing electricity in rural and remote areas. The Rural and Remote Electricity Rate remained unchanged at 0.12 ¢/kWh effective Jan. 1, 2013.