New Proposal for An Electricity Energy Efficiency Programming to Promote Beneficial Electrification

Context

Ontario currently offers a suite of electricity energy efficiency (EE) programs that are funded through electricity rates to address electricity system needs and help customers reduce their electricity consumption and bills.

On October 4, 2024, the Ministry of Energy and Electrification (ENERGY) posted a proposal to the Environmental Registry of Ontario (ERO) regarding an electricity EE framework to launch in 2025 that would support affordability, optimize delivery and launch new programs to provide more customer choice and savings while also helping to address Ontario’s growing electricity needs.

On October 23, 2024, ENERGY posted a proposal to the ERO which outlined legislative amendments to the Electricity Act, 1998 that would enable the IESO to administer enhanced energy efficiency programs that support beneficial electrification (BE) – the use of electricity instead of other fuels to reduce overall energy use and emissions and subsequently reduce costs for high consumption activities such as home heating and cooling, regardless of fuel type.

Proposal

ENERGY is now seeking feedback on the proposed BE programming that would be delivered by the IESO starting in 2025, if the required legislative amendments are approved by the Legislature and associated regulatory instruments receive all required internal approvals. This programming would be coordinated with other EE programs offered by the IESO and would be targeted towards offering electricity measures non-electric end-uses (such as electrification of space and water heating).

This programming would be funded through electricity rates to provide direct assistance to customers to participate in electrification and help reduce their overall energy costs and emissions.

Environmental Impact

The ministry considered its statement of environmental values in application to the proposed BE programming.

BE programming would provide incentives to adopt clean electricity measures for use in daily life and provide consumers with more options to reduce their overall energy use without compromising comfort while reducing their energy bills and carbon footprint.