Some of Ontario’s promised hydro bill cuts take effect in May
Posted April 21, 2017 5:18 pm.
Last Updated April 21, 2017 5:24 pm.
This article is more than 5 years old.
The Ontario Energy Board says that starting in May, electricity ratepayers will see some of the reductions from the government’s promise to cut bills by an average of 17 per cent.
Average customers using 750 kilowatt hours per month, will see bills of about $127.
The OEB says that is about nine per cent lower, due to parts of the government’s hydro plan that don’t require new legislation, including removing a charge that funds a low-income support program, as that will be funded from the tax base now.
The Liberal government announced its plan to reduce electricity bills by an average of 17 per cent in early March, but still has not introduced the legislation that would enable much of it.
Most of the reductions are coming from taking $2.5 billion a year off the global adjustment charge — to be paid back down the road with interest. The global adjustment is the charge consumers pay for above-market rates for power producers, which the government says ensures a reliable supply.
The OEB says it is reducing the forecast amount of the global adjustment by $1 billion for now and will further reduce the charge later.
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