Households and Small Businesses Across Ontario to Benefit from Lower Hydro Bills
Single-Largest Reduction to Electricity Rates in Ontario’s History
Premier Kathleen Wynne was in Barrie today to discuss how Ontario's Fair Hydro Plan will lower electricity rates for households and small businesses by an average of 25 per cent. The plan is part of a significant system restructuring that will address long-standing policy challenges and ensure greater fairness.
Starting this summer, small businesses that are on the Regulated Price Plan (RPP) will also be eligible for the 25 per cent cut. Up to half a million small businesses and farms are expected to benefit.
People with low incomes and those living in eligible rural communities will receive even greater reductions to their electricity bills. As part of this plan, rate increases over the next four years would be held to the rate of inflation for everyone.
These measures include the eight per cent rebate introduced in January and build on previously announced initiatives to deliver broad-based rate relief on all electricity bills.
Taken together, these changes will deliver the single-largest reduction to electricity rates in Ontario's history.
Reducing electricity costs for households and small businesses is part of Ontario's plan to create jobs, grow our economy and help people in their everyday lives.
- Ontario’s Fair Hydro Plan would improve sector efficiency and modernize the province’s electricity market, working in collaboration with the Independent Electricity System Operator (IESO) and the Ontario Energy Board (OEB).
- Businesses eligible for the Regulated Price Plan (RPP) would see an average 25 per cent reduction in their bills. Eligibility for the RPP is based on the total energy consumption of an individual company.
- Ontario is expanding the Industrial Conservation Initiative (ICI) program by reducing the threshold from 1 MW to 500 kW and targeting more small manufacturing and industrial consumers.
“Small businesses are the heart of many Ontario communities, and we need to help them thrive by creating an environment that encourages growth. Our plan to lower electricity bills by 25 per cent on average provides much-needed relief to small businesses and households across Ontario. Making rates fair is the smart thing to do for Ontario’s economy and the right thing to do for families.”
“Residents and business owners in Barrie told us that government needed to do more to bring down the cost of hydro. I know that people in this region are looking forward to relief on their electricity bills. With these structural changes to the system, Ontario is making electricity more affordable now and ensuring rates are fairer in the future.”
“The measures the Premier has outlined in the Government’s Fair Hydro Plan create real value for Alectra customers. Delivering value to customers is our company’s primary focus. We are dedicated to being an ally to them and to the communities we serve.”