OEB Adjusts Electricity Prices Charged to Ontario Consumers
marketwired.comApril 29, 2014
The Ontario Energy Board (OEB) recently announced adjustments in electricity prices for all residential and small business customers in Ontario effective May 1, 2014.
The new prices will see customers, on time-of-use ("TOU") pricing, charged as follows:
- Off-peak (7 p.m. to 7 a.m. weekdays, weekends & statutory holidays) = 7.5c/kWh (an increase of 0.3c);
- Mid-peak (7 a.m. to 11 a.m. and 5 p.m. to 7 p.m. weekdays) = 11.2c/kWh (an increase of 0.3c);
- On-peak (11 a.m. to 5 p.m. weekdays) = 13.5c/kWh (an increase of 0.6c).
Customers who are still being billed using two tiered-pricing structures will have their electricity prices charged as follows:
- 8.6c/kWh for the first 600 kWh (residential only) consumed each month (an increase of 0.3c);
- 10.1c/kWh above that (an increase of 0.4c).
Note: The monthly consumption threshold for small businesses stays at 750 kWh/month all year.
Ontario electricity distribution companies, like PowerStream, purchase the electricity that they deliver to customers at market or regulated prices and bill customers for the cost of the purchased electricity. PowerStream recovers its operational costs through distribution rates embedded in the 'Delivery' portion of electricity bills. Distribution charges, the only part of the bill that PowerStream has control over, account for approximately 20% of a typical residential customer's total bill.
The new prices set by the Ontario Energy Board (OEB) will cost the average Ontario residential customer who uses 800 kWh of electricity per month, approximately $2.83 more per month on the 'Electricity' line of their bill.
The Ontario Clean Energy Benefit (OCEB), which offers an opportunity to receive a 10% reduction on all residential and small business customers' electricity bills for consumption of the first 3,000 kWh monthly, will continue through 2014. Those customers, who purchase their electricity from an energy retailer, will continue to pay electricity rates and charges in accordance with their retail contracts.
