The Ontario Energy Board (OEB) this week announced that the price paid by Ontario consumers for electricity will be going up on May 1st.
The rate increases are on top of increases imposed last year in Ontario that saw electricity bills jump between 15% and 20%.
In Ontario, there are two types of residential electricity consumers in Ontario, those on Regulated price plans (RPP) and those that are on Time of Use (TOU) pricing. The OEB says that both types of plans will see price increases.
Regulated Price Plan
Beginning May 1st, the OEB says that under the Regulated Price Plan (RPP), prices paid by residential customers for the first 600 kWh of electricity each month will increase from 6.4 cents to 6.8 cents per kWh. Above 600 kWh, the price will increase from 7.4 cents to 7.9 cents per kWh. The OEB estimates the bill impact for residential RPP consumers that are on tiered pricing will be about $7.60/month based on 800 kWh/month use.
Also effective May 1 for residential consumers, the seasonal threshold below which the lower tiered price applies will change from 1,000 kWh to 600 kWh per month. The threshold for nonresidential RPP consumers stays at 750 kWh throughout the year.
The result is an Ontario RPP customer using 800 kWh per months will pay $119.71 for electricity before temporary tax rebates , an increase of over 11% from May 1, 2010.
Time of Use Pricing
As of March 31, 2011 there were 4,640,380 installed smart meters and 2,064,312 customers on TOU billing in Ontario. It is expected there will be approximately 3 million customers on TOU billing by June 2011, with more being switched to TOU billing over the summer and through the fall.
TOU customers will see their an 0.8 cents per kWh price increase for all time periods. On Peak, mid peak and off peak will now cost 10.7 cents, 8.9 and 5.9 cents per kWh.
In May 2008, the price of off peak electricity was 2.7 cents per kWh, meaning off peak pricing will have increased a whopping 118% in just three years.
Also effective May 1, TOU off-peak hours on weekday evenings will begin two hours earlier, at 7 p.m. rather than 9 p.m.,
An Ontario TOU customer using 800 kWh per months will pay $121.50 for electricity before temporary tax rebates, an increase of over 11.5% from May 1, 2010.
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