Rate Changes for Class A and B (Large Commercial and Industrial Customers) - Effective January 1, 2022
As of January 1, 2021, the Ontario government began funding a portion of renewable energy contract costs, resulting in electricity cost relief.
Also as of January 1, 2021, the Ontario government began recovering Global Adjustment payments, which were deferred between April and June 2020.
In 2021, Class A and non-RPP Class B customers could see net savings of 11-12% on their bills as a result of these two initiatives (actual savings will depend on location and consumption).
Do you have questions about the Global Adjustment deferral? Click here for answers to frequently asked questions.
Commercial and Industrial Consumers
Businesses that use more than 250,000 kWh per year pay either the Weighted Average Price (WAP) or the Spot Market Price (SPOT), depending on the type of meter that they have.
Businesses with a non-interval meter that measure the total amount of electricity consumed in the billing period pay the WAP. This is calculated in accordance with the Ontario Energy Board’s Retail Settlement Code. Businesses that have an interval meter that measures their electricity consumption on an hourly basis pay the Spot market price. This is the pricing established by Ontario’s Independent Electricity Service Operator.
Consumers that pay the WAP or SPOT price (as well as those consumers that have signed a contract with an electricity retailer for the purchase of electricity) also pay the Global Adjustment.
The Global Adjustment reflects the differences between the market price of electricity and the regulated or contract prices that are paid to generators for the electricity they produce. These include nuclear, gas-fired and renewable generators (like wind farms). The Global Adjustment also reflects the costs of conservation programs.
Ontario Electricity Rebate
On November 1, 2019, the Ontario government launched the Ontario Electricity Rebate (OER), which started being applied to bills for most residential consumers, farms and many small businesses. Effective November 1, 2022, the OER changed to 11.70% (from 17%).The OER is a pre-tax credit that appears at the bottom of electricity bills. The Ontario Energy Board (OEB) predicts that a typical residential customer who uses 700 kWh of electricity per month would see their bill decrease by about $13.91 each month due to the OER.
If you have a residential or small business (general service less than 50 kW) account with Oakville Hydro, you do not need to do anything. You will automatically receive the OER. Learn more and see if your business qualifies at this link.
To learn more about the OER, visit the OEB website at this link.
If you buy electricity from an electricity retailer instead of Oakville Hydro, the prices you pay will be based on the contract you signed with the retailer.