Actions to Reduce Energy Costs
Ontario has taken action to reduce electricity costs for families, farms and businesses, while continuing to ensure they have a clean, reliable supply of electricity. Actions taken so far include:
- An agreement to trade electricity, capacity and energy storage with Quebec, which will reduce Ontario’s electricity system costs by about $70 million, when compared to previous forecasts.
- On October 19, 2016, the Ontario Energy Board (OEB) announced that Regulated Price Plan (RPP) rates would not increase for Ontario’s five million residential, farm and small business customers.
- Ontario passed legislation to reduce electricity bills in Ontario by 8 per cent, an amount equal to the provincial portion of the Harmonized Sales Tax, beginning January 1, 2017.
- Providing more savings through the Rural or Remote Electricity Rate Protection (RRRP) program. Together, the 8 per cent rebate and the enhanced RRRP will provide eligible rural customers with a monthly savings of about 20 per cent, or $45 per month.
- Introducing the Ontario Electricity Support Program (OESP) for low-income families. The OESP credit amount for qualified customers is based on household income and household size. Monthly on-bill credits range from $30 to $50. Customers with unique electricity requirements could be eligible for a higher level of assistance of up to $75 on their electricity bill.
- Introducing strong competition between developers of large renewable projects through the first round of LRP (LRP I) to drive down price and secure clean, reliable generation for the province.
- Suspending the second round of the Large Renewable Procurement (LRP II) process and the Energy-from-Waste Standard Offer Program is expected to save up to $3.8 billion in costs This would save the typical residential electricity consumer an average of approximately $2.45 per month on their electricity bill, relative to previous forecasts.
- Reducing Feed-In Tariff (FIT) prices through annual price reviews, saving ratepayers at least $1.9 billion.
- Removing the Debt Retirement Charge (DRC) for all residential customers, saving the typical ratepayer $5.25 per month.
- Renegotiating the Green Energy Investment Agreement (GEIA) with Samsung, reducing contract costs by $3.7 billion.
- Deferring the construction of two new nuclear reactors at Darlington, avoiding an estimated $15 billion in new construction costs.
- Maximizing the value of our existing nuclear fleet by starting Bruce refurbishments in 2020, instead of 2016, thus helping to achieve $1.7 billion in savings and by continuing to operate Pickering up to 2024, pending regulatory approvals, which could save ratepayers as much as $600 million.