The Ontario Energy Board announced new time-of-use (TOU) electricity prices April 20 for households and small businesses starting May 1.
The price is increasing by approximately $5.71 per month on the “Electricity” line, and about 4.6% on the total bill, for a household that consumes 800 kWh per month.
Increased costs from Ontario Power Generation’s nuclear and hydro-electric power plants make up about half of this increase. Costs from new generation sources are another driver, representing about one-third of the increase.
The OEB is also introducing a new 2:1 ratio between on-and off-peak prices that will benefit customers who shift their use to the cheapest time period.
The new off-peak price is half the cost of the on-peak price. This means customers who shift use to evenings and weekends will see a greater reward for doing so. Through recent OEB consumer research, Ontarians have signaled a need for pricing that provides greater incentives to conserve. Giving customers incentives and opportunities to reduce their bills by shifting their time of electricity use is a key objective of the OEB’s price plan.
This ratio shift was also recommended by Ontario’s Environmental Commissioner, who called on the OEB to significantly widen the peak to off-peak price differential in his 2014 Annual energy conservation report, Planning to Conserve. The 2014 Annual Report of the Office of the Auditor General of Ontario also noted that the former ratio may not be sufficient to encourage ratepayers to shift their electricity use behaviour.
New summer TOU hours will also take effect May 1. The chart outlines TOU prices and the times they are effective as of May 1, 2015.
The Ontario wholesale electricity market price forecast for May 1, 2015 through October 31, 2016 from Navigant consulting is available at http://www.ontarioenergyboard.ca/oeb/_Documents/EB-2004-0205/Wholesale_Price_Forecast_Report_May-15_20150420.pdf.