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Ontario introduces COVID-19 recovery rates for fixed electricity pricing

Effective June 1, 2020, Ontario has introduced a fixed electricity price, known as the COVID-19 Recovery Rate, of 12.8 cents per kWh, which will be automatically applied to all time-of-use customers 24 hours a day, 7 days a week. This fixed electricity price will be in place from June 1 – October 31, 2020

“Our government is committed to supporting families and business-owners as we plan for the safe and gradual reopening of the province,” says Greg Rickford, Ontario Minister of Energy, Northern Development and Mines.

The COVID-19 Recovery Rate of 12.8¢/kWh is based on the average cost of electricity, set by the Ontario Energy Board.

Starting November 1, 2020, customers will be able to choose a plan that best suits their household and lifestyle with the option of either TOU electricity rates or tiered pricing, which will provide a set rate for electricity up to a certain level of consumption.

The government will continue to subsidize electricity bills by 31.8 per cent through the Ontario Electricity Rebate. The government is providing approximately $5.6 billion in 2020-21 as part of its existing electricity cost relief programs, to help ensure more affordable electricity bills for eligible residential, farm and small business consumers.

Details of the new programs were provided by Premier Doug Ford, Christine Elliott, Deputy Premier and Minister of Health, Greg Rickford, Minister of Energy, Northern Development and Mines, and Bill Walker, Associate Minister of Energy.

Initiatives include:

• $9 million for the COVID-19 Energy Assistance Program (CEAP) to support consumers struggling to pay their energy bills during the pandemic. CEAP will provide one-time payments to consumers to help pay down any electricity bill debt incurred over the COVID‑19 period. Applications will be available through local utilities in the upcoming months;

• $8 million for the COVID-19 Energy Assistance Program for Small Business (CEAP-SB) to provide support to businesses struggling with bill payments as a result of the outbreak; and

• An extension of the Ontario Energy Board’s winter disconnection ban until July 31, 2020 to ensure no one is disconnected from their natural gas or electricity service during these uncertain times.

Previously, the provincial government had announced a hold on the off-peak rate of 10.1 cents-per-kilowatt-hour for 45 days starting from March 25, 2020, providing immediate electricity rate relief for families, small businesses and farms paying time-of-use (TOU) rates.

There are approximately five million residential consumers, farms and some small businesses billed using TOU electricity prices under the Regulated Price Plan.