Electricity Prices Have Dropped in Ontario
Good news, Hamilton!
Alectra Utilities, formerly Hyrdo One, has announced cheaper electricity prices came into effect on Canada Day, this past Saturday, July 1, 2017.
The lower prices are in accordance with Ontario's Fair Hydro Plan.
The Ontario Energy Board's (OEB) new Regulated Price Plan (RPP) rates apply to all residential and small business customers in Ontario, including those served by Alectra Utilities.
The new prices set by OEB show quite significant differences from what the prices would normally be like at this time of year.
Here’s a breakdown of the regular prices versus the new and reduced prices:
As a result of the decreased prices, a residential customer who uses 750 kilowatt-hours (kWh) of electricity per month can expect to see a reduction of approximately 25 per cent, or $41 on their bill, according to Alectra.
If you were wondering how this price drop is possible, here's a look at a few contributing factors:
The planned refinancing of a portion of the costs of the Global Adjustment (GA), as
reflected in the new RPP prices;
The 8% rebate, equivalent to the provincial portion of the HST, that has been in place
since January 1, 2017;
The impact of removing most of the cost of the Rural and Remote Rate Protection
program from electricity bills, which will now be paid for from provincial revenues; and
The impact of removing the cost of the Ontario Electricity Support Program (OESP) from electricity bills. The OESP will continue to be available to help eligible low income customers reduce their electricity bills, and will also be paid for from provincialrevenues.
The GA credit that applies to other eligible customers has been set by the OEB at $32.90/MWh (or about 3.3C/kWh).
The new RPP prices and the GA credit will be in effect until April 30, 2018. After that, increases will be held to the rate of inflation.
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