Toronto: The average Toronto Hydro residential customer (consuming 750 kilowatt-hours per month) could expect to see their bills drop by approximately 8.5%, or $13.66 per month beginning January 1, Toronto Hydro said at the end of December. The reduction in electricity charges reflects several changes on the bill, including a decrease in the Delivery Charge, an increase in the Regulatory Charge and the introduction of an 8% Provincial Rebate from the Ontario government.
The Delivery Charge is going down by 5.2% for the average residential customer. Although Toronto Hydro's base distribution rates are increasing, they are being offset by decreases in other components of the Delivery Charge, such as the clearance of a number of variance accounts and decreasing transmission rates, Toronto Hydro explains.
Average residential customers will also see an increase of 12.7% on the Regulatory Charge. This change reflects an increase in Rural or Remote Electricity Rate Protection, a program to assist rural and remote electricity consumers, and is administered by the Ontario Energy Board.
The Ontario government's 8% Provincial Rebate on before-tax total electricity charges is equivalent to the HST portion of the bill. This is expected to save customers an average of $130 each year.