By Lori Bosworth
Just in time for winter, the Ontario Energy Board has raised electricity prices for most households and small business owners effective November 1, 2013. The board reviews electricity prices twice a year based on updated cost estimates. The increased electricity prices are due to estimates for the next year including more generation from sources such as renewables and higher market prices for natural gas.
Another reason for the price increase is the variation between previous estimates and actual costs.
The price increase is approximately $4 on the ‘Electricity’ line or about 3% on the total monthly bill, for a household with a typical consumption of 800 kWh per month.
Time-of-use Prices as of November 1, 2013
Off-peak (Weekdays 7 p.m. – 7 a.m.) 7.2 cents/kWh increase of 0.5 cents
Mid-peak (Weekdays 11 a.m. – 5 p.m.) 10.9 cents/kWh increase of 0.5 cents
On-Peak (Weekdays 7 a.m. – 11 a.m. and 5 p.m. – 7 p.m.) 12.9 cents/kWh increase of 0.5 cents
The Ontario Energy Board reports that:
- The majority of households and small businesses in Ontario now pay time-of-use prices.
- Most Ontario households use about two-thirds of their power (64%) during off-peak hours.
The increased prices do not affect consumers who have contracts with a company that sells electricity under contract. In May 2013, households and small businesses faced a similar increase in electricity costs adding approximately $3.63 to the ‘Electricity’ line.