Implementation of COVID-19 Recovery Rate for Regulated Price Plan and Time-of-Use Electricity Customers

ERO number
019-1896
Notice type
Bulletin
Posted by
Ministry of Energy, Northern Development and Mines
Transferred to
Ministry of Energy
Bulletin posted
Last updated

This notice is for informational purposes only. There is no requirement to consult on this initiative on the Environmental Registry of Ontario. Learn more about the types of notices on the registry.

Bulletin summary

On June 1, 2020, the government implemented a flat COVID-19 Recovery Rate of 12.8 ¢/kWh for all Regulated Price Plan (RPP) Time-of-Use (TOU) electricity customers. The government intends that RPP TOU customers will be charged this flat rate for all periods of the day, seven days a week, until October 31, 2020.

 

Why consultation isn't required

Theimplementation of the flat COVID-19 Recovery Rate was implemented expediently to provide continued electricity stability and predictability during the COVID-19 outbreak and to respond to the physical distancing policies that were put in place.

Because the regulation was urgently needed to respond to the state

Due to physical distancing policies, work from home practices, and school closures, consumers can expect to use more electricity during mid-peak and on-peak times between 7:00 am and 7:00 pm on weekdays. The COVID-19 Recovery Rate will provide Ontarians greater flexibility to use electricity as needed during these periods. Consulting on this change through the Environmental Registry would have delayed the implementation of the COVID-19 Recovery Rate, which would have required Ontario’s TOU customers to pay the higher mid-peak and on-peak TOU rates during the day.

We are posting this information notice (Bulletin) because the ministry continues to be committed to transparency and informing the public during the declared emergency.

Bulletin details

On March 17, 2020, the Government of Ontario made an order declaring an emergency (the “Emergency Declaration”) under section 7.0.1 (1) the Emergency Management and Civil Protection Act to respond to the COVID-19 outbreak.

As a result of the emergency, the government instituted physical distancing policies, including school and non-essential business closures and work from home policies. The government recognized that these policies would result in increased electricity use during the day for residential customers, and that small businesses and farms, whether they are open or closed, continued to have electricity costs and needed help.

During the week of March 16, there were numerous customer requests to provide electricity relief from TOU prices while social distancing policies were in effect. There were numerous media articles, sustained social media posts, direct messages to government, and more than 10 online petitions that expressed a public desire to switch to off-peak TOU rates during COVID-19 social distancing.

On March 24, 2020, the government responded by suspending TOU rates, holding electricity prices to the lowest rate, known as the off-peak rate, of 10.1 cents per kilowatt hour, available 24 hours a day, seven days a week for an intended 45-day period. This off-peak price period was enabled by Emergency Order (Ontario Regulation 80/20) made under subsection 7.0.2(4) of the Emergency Management and Civil Protection Act, 1990 (EMCPA).

On May 6, 2020 the government announced its intention to extend the off-peak TOU rate to the end of day on May 31, 2020 to continue to provide support to residential, farm and small business TOU customers.

As Ontarians and their families continued to spend more time at home, on May 30, 2020, the government announced it would continue the time-of-use suspension by introducing the flat COVID-19 Recovery Rate for TOU customers beginning June 1, 2020. The COVID-19 Recovery Rate will provide Ontarians greater flexibility to use electricity during all periods of the day as people continue to adjust their day-to-day schedules and the economy recovers from the COVID-19 outbreak.

This flat rate of 12.8 ¢/kWh is based on the forecast average RPP supply cost for RPP consumers, calculated by the Ontario Energy Board (OEB) as of November 1, 2019

The government worked with the Ontario Energy Board and Local Distribution Companies (LDCs) to implement the COVID-19 Recovery Rate quickly to provide immediate electricity stability and predictability to families and businesses impacted by COVID-19.

The monthly summer bills of most residential and small business customers charged at the COVID-19 Recovery Rate would be expected to be within 2 percent of the bill they would have received if they were charged TOU rates. While the benefit to customers may vary, the COVID-19 Recovery Rate will provide certainty to customers regarding how they are charged for all hours of the day during a time that they are being asked to stay home.

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