Business Rates

Business / Commercial Rates

---

---

Customer Choice - November 1, 2020

If you’re a residential or small business customer that pays Time-of-Use (TOU) electricity prices, you can choose to switch to Tiered prices beginning November 1, 2020.

Ontario Introduces Customer Choice Rates

For more information about your pricing options, visit www.oeb.ca/choice.

---

Changes to Industrial and Commerical Electricity Costs

Ontario deferred a portion of the Global Adjustment (GA) between April and June 2020 by limiting the Class B GA rate to $115/MWh for non-Regulated Price Plan (RPP) customers and providing proportionate reductions for Class A customers.  The deferred costs were intended to be recovered over a 12-month period beginning January 2021.

Ontario has now made amendments to O. Reg. 429/04, effective January 1, 2021, to enable the recovery of those deferred GA costs.  Starting in January 2021, Class A and non-RPP Class B customers will repay the deferred costs over 12 months.  RPP customers are not affected by these changes.  These regulatory amendments can be found here.

At the same time, Ontario has made regulatory amendments such that starting January 1, 2021, a portion of non-hydro renewable energy contract costs will be paid by the government instead of electricity customers.  This will lower electricity bills for commercial and industrial customers and more than offset the impact of recovering the deferred GA.  This funding is intended to continue beyond 2021.

Frequently Asked Questions

1. What is the Government of Ontario doing and why?
Ontario deferred a portion of Global Adjustment (GA) between April and June 2020 by limiting the Class B GA rate to $115/MWh for non-Regulated Price Plan (RPP) customers and providing proportionate reductions for Class A customers.  The deferred costs were intended to be recovered over a 12-month period beginning January 2021.

The Ontario government has now made amendments to O. Reg. 429/04 that enable the recovery of those deferred GA costs.  The costs are being recovered starting January 1, 2021 from Class A and non-RPP Class B customers.  There is no effect on RPP customers.  These regulatory amendments can be found here.

At the same time, Ontario is reducing the cost of electricity for industrial and commercial customers by shifting a portion of non-hydro renewable energy contracts to the tax base.  These reductions are considerably larger than the deferral repayment costs, and the intent is for this funding to continue after the deferral recovery is complete.

2. How will this affect electricity costs?
The recovery of the deferred Global Adjustment (GA) costs will put upward pressure on costs for Class A and non-RPP Class B customers in 2021.  However, this will be more than offset by the government's initiative to shift a portion of non-hydro renewable energy contract costs to the tax base.  Those reductions are considerably larger than the deferral repayment costs, and the intent is for this funding to continue after the deferral recovery period is complete.  The result will be a significant net benefit to these customers.

As a result of these two initiatives, in 2021, Class A and non-RPP Class B customers could see savings of about 11% and 12%, respectively.  After 2021, savings are expected to increase as the recovery of deferred GA costs would be complete and the funding of a portion of non-hydro renewable energy contract costs is expected to continue.  Actual savings will depend on location and consumption.

3. Will households, small businesses or farms be affected?  Will residential customers see their bill go up becuase of this?
No.  Regulated Price Plan (RPP) customers, including residential, small business and farm customers, will not be affected by the recovery of deferred GA costs.

---

Setting Rates

In Ontario, electricity rates are set by the Ontario Energy Board (OEB). Your bill includes charges for the electricity commodity (generation), transmission through high voltage systems (e.g. Hydro One), and distribution through local systems (e.g. ENWIN). The OEB must ensure that all rates are justified and reasonable. ENWIN is required to prove to the OEB that its rates are justified and reasonable through a rate application process. The current OEB-approved rates are listed below. More information on rates is available at the OEB website: www.oeb.ca.

---

Electricity Delivery Rates - Effective January 1, 2021

 

*Charge is per connection

Note: Non-RPP, non-WMP customers will also have the Rate Rider for Global Adjustment Account Disposition of $0.0009 / kWh.

Large Users rates are available upon request.

---

Regulated Price Plan (RPP) Consumers

Applies to those customers meeting the legislative criteria (residential/low-volume consumer) of the program. A regulated price per kWh is charged for electricity used.

---

---

Tiered Rates

Under tiered rates, a customer can use a certain amount of energy each month at a lower rate. Once that limit is exceeded, the rate goes up. The chart below shows the rates and tiers for each type of customer.

 

---

Non-Regulated Price Plan Consumers

The electricity price you pay per kWh is:

1. The spot market price or weighted average price (dependant on the type of meter installed), or
2. A retailer contract price (dependent on your choice of electricity provider).

You will also be subject to a separate charge for the Global Adjustment, which will appear as a separate line item on your bill.  More information is available here: Class B Global Adjustment and Class A Global Adjustment.

 

---

Ontario Electricity Rebate (OER)

The Ontario Electricity Rebate (OER) is for most households, farms, long-term care homes and small businesses. Eligible consumers automatically receive the rebate, which appears on bills as a separate line item. Starting January 1, 2021, the OER will provide eligible consumers with a 21.2% rebate from the province on the subtotal of their electricity bill.

Consumers with demand of 50 kilowatts or less or annual consumption of 250,000 kilowatt hours or less, farms, and licensed long-term care homes (other than where the electricity account is also in respect of a hospital) are eligible to receive the rebate.  

Some multi-unit residential complexes that do not have individually metered units may also be eligible with demand above 50 kilowatts and annual consumption above 250,000 kilowatt hours.  

To learn more about the OER eligibility criteria and how to apply for the rebate, please click the link below:

PDF - OER Declaration Form

The chart below provides the current and most recent value of the OER:

 

---

Regulatory Charges

*Applies to customers not contracted with an energy retailer.

---

Total Loss Factor Adjustment - Effective January 1, 2020

As electricity is delivered over a power line, a small amount of power is consumed or lost as heat. This is known as line loss, and is caused by wires and transformers that consume power before it gets to your home or business. The loss factor adjustment accounts for these losses.

---

Late Payment Charge

A Late Payment Charge of 1.5% will be applied to the unpaid portion of your account's monthly balance.

---

Transformer Ownership Credit

---

Common Miscellaneous Charges (plus applicable taxes)

---