The Ontario Energy Board (OEB) this week announced that the price paid by most Ontario consumers for electricity will be going up by approximately 12% on May 1st.
In addition, electricity prices will go up another 8% on July 1st when the McGuinty government introduces the harmonized sales tax (HST) in the province.
The OEB says the rrimary factors contributing to the overall increase are payments going to renewable generation projects and conservation and demand management programs, higher costs for existing generation from fossil fuel and hydro plants and underpayment under the RPP plan in the past.
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 5.8 cents to 6.5 cents power kWh.
Above 600 kWh, the price will increase from 6.7 cents to 7.5 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.
Time of Use customers are also expected to take a major hit with increases in both off peak and on peak electricity prices being increased. Off-peak pricing will rise a whopping 20.5% to 5.3 cents per kWh (from 4.4 cents) while on-peak pricing will increase 6.5% to at 9.9 cents per kWh (from 9.3 cents).
The estimated bill impact of the change in TOU prices for those residential RPP consumers that are on TOU pricing is about $5.79/month based on 800 kWh/month use.
Beginning July 1st, all electricity bills will be subject to the harmonized sales tax (HST) which will add an additional 8% to all electricity bills.
Depending on your households consumption, your overall electricity bill could increase between 15% and 20% by the end of the year.
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