Proposed implementation of Customer Choice for Regulated Price Plan Time-of-Use Customers

ERO number
019-2048
Notice type
Regulation
Act
Ontario Energy Board Act, 1998
Posted by
Ministry of Energy, Northern Development and Mines
Notice stage
Decision
Decision posted
Comment period
July 3, 2020 - August 17, 2020 (45 days) Closed
Last updated

There is no requirement to post this notice on the Environmental Registry of Ontario, but we wanted to hear your thoughts. Thank you for your feedback.

This consultation was open from:
July 3, 2020
to August 17, 2020

Decision summary

Amendments have been made to O. Reg. 95/05 Classes of Consumers and Determination of Rates to enable Regulated Price Plan (RPP) customers who pay Time-of-Use (TOU) rates to choose instead to pay tiered rates as of November 1, 2020.

Decision details

On August 20, 2020, the government made regulatory amendments that impose new requirements on the Ontario Energy Board (OEB) as of November 1, 2020 to require electricity distributors to provide Regulated Price Plan (RPP) customers paying Time-of-Use (TOU) rates with the choice to switch to tiered pricing.

The regulatory amendments also enable the OEB to establish rules for how RPP TOU customers can choose to switch to tiered pricing.   

Comments received

Through the registry

3

By email

1

By mail

0
View comments submitted through the registry

Effects of consultation

The feedback received in support of the proposal included:

  • All RPP TOU customers, including residential, small business and farm customers, should be eligible to switch to tiered pricing.
  • Farm businesses, of which many do not have the capacity to reduce electricity consumption during peak-use hours, will benefit from the option of switching from TOU to tiered rates to best suit their needs.

The feedback received that did not support the proposal included:

  • Concern that the proposal will increase electricity prices and greenhouse gas emissions as a result of increased peak demand if large numbers of customers switch to tiered pricing.

A number of recommendations were received in response to the proposal, including:

  • Customers should be provided with tools and information to help them determine which price structure is best for them.
  • Implementation costs should be minimized.
  • The transition between price structures for customers and implementation for regulated entities should be as smooth as possible.
  • The OEB should increase the current tiered pricing threshold for non-residential consumers to increase the monthly consumption available at the lower price, which would enable longer operations and expedite economic recovery.
  • Increase pricing options beyond TOU and tiered pricing.

The regulatory amendment includes a provision that enables the OEB to establish rules governing the election to switch to tiered pricing. Many of the recommendations received through this posting are relevant to the policy consultation that the OEB has initiated to implement this change for November 1, 2020. As such, many of the comments received are applicable to the OEB consultation and not the regulatory proposal. The government will work with the OEB to share the content of the feedback received for consideration as part of this consultation.         

Supporting materials

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Important notice: Due to the ongoing COVID-19 pandemic, viewing supporting materials in person is not available at this time.

Please reach out to the Contact listed in this notice to see if alternate arrangements can be made.

Ministry of Energy, Northern Development and Mines
Address

77 Grenville Street
6th Floor
Toronto, ON
M7A 2C1
Canada

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Original proposal

ERO number
019-2048
Notice type
Regulation
Act
Ontario Energy Board Act, 1998
Posted by
Ministry of Energy, Northern Development and Mines
Proposal posted

Comment period

July 3, 2020 - August 17, 2020 (45 days)

Proposal details

Summary of Proposal:

On June 1, 2020, it was announced that starting November 1, 2020, Regulated Price Plan (RPP) Time-of-Use (TOU) electricity customers would be able to choose a rate plan that best suits their household and lifestyle by giving them the option of switching from TOU pricing to tiered pricing.  Tiered pricing provides a set rate for electricity up to a certain level of consumption, and a higher rate for electricity used above that level.

In order to implement this change, the Ministry of Energy, Northern Development and Mines (ENDM) is proposing regulatory amendments to O.Reg. 95/05 that will, if approved, impose a requirement on the OEB to require distributors to permit RPP TOU customers to elect instead to be charged tiered prices for electricity starting November 1, 2020. If approved, the regulatory amendments will also provide that the Ontario Energy Board (OEB) will establish rules for how RPP TOU customers can elect to switch out of TOU pricing.
 

Background Information:

Time-of-use (TOU) electricity rates vary by time of day and are comprised of three different rate periods of off-peak, mid-peak and on-peak pricing.

Tiered electricity rates provide customers with a set rate for electricity up to a certain level of consumption. The rate is higher for all electricity use that exceeds this threshold.

The OEB sets both tiered and TOU rates as part of the RPP.

There are approximately five million residential consumers, farms and small businesses billed using TOU electricity prices under the RPP.

Supporting materials

View materials in person

Important notice: Due to the ongoing COVID-19 pandemic, viewing supporting materials in person is not available at this time.

Please reach out to the Contact listed in this notice to see if alternate arrangements can be made.

Ministry of Energy, Northern Development and Mines
Address

77 Grenville Street
6th Floor
Toronto, ON
M7A 2C1
Canada

Comment

Commenting is now closed.

This consultation was open from July 3, 2020
to August 17, 2020

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