Ontario Energy Board Increases Electricity Prices

0
Electricity prices are increasing in Ontario, photo by Luke Wisley
Electricity prices are increasing, photo by Luke Wisley

By Lori Bosworth

Electricity prices are increasing in Ontario, photo by Luke Wisley
Electricity prices are increasing, photo by Luke Wisley

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.