Ontario's Long-Term Energy Plan Delivers Fairness, Affordability and Choice
Province Continues to Focus on Reducing Costs and Maintaining Reliability
Today, Ontario released the 2017 Long-Term Energy Plan (LTEP) that focuses on energy affordability, innovation and customer choice.
As of July 1, 2017, Ontario's Fair Hydro Plan reduced electricity bills by 25 per cent on average for residential consumers and as many as half a million small businesses and farms across the province. As part of the plan, any increases to bills will be held to the rate of inflation for four years.
Following this, the 2017 LTEP confirms that electricity prices are forecast to remain below the level projected in the 2013 LTEP. For example, the 2013 LTEP forecast that typical residential monthly electricity bills would be $170 in 2017 and $200 in 2027. The 2017 LTEP forecasts bills prices to be $127 and $181 respectively, including the change in average consumption from 800 to 750 kilowatt hours per month. The outlook for electricity prices for large consumers will be, on average, in-line with inflation over the forecast period.
While rates will rise gradually over time, the government remains committed to avoiding sharp increases through initiatives outlined in the plan.
Initiatives in the 2017 LTEP include:
- Maximizing the use of Ontario's existing energy assets, only securing new power when it is needed.
- Transforming Ontario's wholesale electricity markets through market renewal. Market renewal is intended to more flexibly and efficiently meet system needs and government policy goals. Market renewal will be aligned with the objectives of Ontario's Climate Change Action Plan and will be designed to reduce ratepayer costs and GHG emissions.
- Enhancing consumer protection by giving the Ontario Energy Board (OEB) increased regulatory authority over the 326,000 individually-metered condo and apartment units in the province.
- Working with the OEB to provide people with greater choice in their electricity price plans, by piloting alternatives to the current approach to time-of-use (TOU) pricing in select communities across the province.
- Enhancing net metering by allowing more people the opportunity to produce clean energy and use it to power their homes and lower their electricity bills.
- Allowing utilities to intelligently and cost-effectively integrate electric vehicles into their grids, including smart charging in homes.
- Working with the OEB and local distribution companies (LDCs) to redesign electricity bills, making them more useful for consumers in understanding and managing their energy costs.
- Expanding the Green Button initiative to provide consumers with the ability to access their energy data and securely share it with apps of their choice to help them manage and conserve energy.
A strong long-term energy plan is part of our plan to create jobs, grow our economy and help people in their everyday lives.
- The LTEP is a road map that sets out the direction for Ontario’s energy future. The last LTEP was issued in 2013.
- Thousands of people from across the province were engaged in the development of the 2017 LTEP. The consultation and engagement process, which took place from October 2016 to January 2017, included:
- 17 stakeholder sessions, with participation from over 500 stakeholders
- 17 public open houses attended by hundreds of Ontarians
- 17 meetings with representatives from nearly 100 Indigenous communities and organizations
- More than 1,500 formal submissions, 200 letters and emails, as well as 2,835 online comments and submissions
- The Minister of Energy issued directives to the Independent Electricity System Operator (IESO) and the Ontario Energy Board (OEB) to develop implementation plans to meet objectives outlined in the 2017 Long-Term Energy Plan.
- Nearly $70 billion has been invested in the electricity system since 2003, including closing all coal-fired generating stations. These investments have produced a clean and reliable electricity system that will benefit the people of Ontario for decades to come.
- Last year, Ontario’s electricity system was 90 per cent free of greenhouse gases that cause climate change.
“Ontario is committed to ensuring our electricity is clean, reliable and affordable. The 2017 Long-Term Energy Plan outlines our investments to date and how we plan to continue building an energy system with fairness and choice for people across the province.”