Ontario to slash hydro rates to offset costs of working from home

Theglobeandmail.com
March 24, 2020
Laura Stone

Ontario is temporarily slashing hydro rates for families, farmers and small businesses amid the COVID-19 crisis.

Premier Doug Ford, alongside Energy Minister Greg Rickford, is set to announce on Tuesday that the province will charge customers lower rates for the next 45 days to offset higher electricity costs as more people work from home, are self-isolating or have lost their jobs, according to a senior Ontario government source. The source was granted anonymity to discuss internal government matters.

The estimated cost will be $162 million, the source said. The Ontario Energy Board is also extending the current ban on electricity disconnection for households and small businesses to July 31.

The source said the government felt the move to lower rates was necessary due to the dramatic shift families and businesses are undergoing as a result of the pandemic, with costs expected to rise.

Starting Tuesday, rates will be lowered to current off-peak overnight and weekend charges of 10.1 cents per kilowatt hour. Currently, mid-peak rates are 14.4 cents and on-peak rates are 20.8 cents. On-peak hours are 7 a.m. to 11 a.m. and 5 p.m. to 7 p.m. on weekdays, while off-peak hours are 7 p.m. to 7 a.m., as well as weekends and holidays.

The government estimates families will save more than $20 per month, while small businesses will save $150 and farms will save more than $300.

Mr. Ford recently said that “relief” is coming to Ontario families who are staying home during the coronavirus pandemic, adding that his government wants to give people flexibility during difficult times.