Regulation - LGIC

Regulatory amendments to O. Reg. 161/99 (Definitions and Exemptions) ("Exemption Regulation") made under the Ontario Energy Board Act, 1998 to help ensure that in qualifying multi-unit complexes, eligible residential units receive the applicable Debt Retirement Charge ("DRC") exemption, and eligible consumers receive the proposed Ontario Electricity Support Program ("OESP") credit.

Regulation Number(s):
Instrument Type:
Regulation - LGIC
Bill or Act:
Ontario Energy Board Act, 1998
Summary of Decision:
The amendments to O. Reg. 161/99 (Definitions and Exemptions), under the Ontario Energy Board Act, 1998, were filed with the Registrar of Regulations on June 19, 2015. Responding to comments received as a result of the posting, changes were made regarding the order in which the Debt Retirement Charge (DRC) exemption is applied by Exempt Distributors.

The posting also described proposed amendments relating to the flow-through of the Ontario Electricity Support Program (OESP) credit. However, following legislative amendments to the Ontario Energy Board Act, 1998 to support implementation of the OESP, those proposed amendments were not made.
Further Information:
Proposal Number:
Posting Date:
April 23, 2015
Summary of Proposal:
Debt Retirement Charge

As announced in the 2014 Ontario Budget, the government is proposing to remove the DRC cost from residential electricity users' electricity bills after December 31, 2015. To implement this exemption the Ministry of Finance is proposing to amend O.Reg. 493/01 (Debt Retirement Charge-Rates and Exemptions) under the Electricity Act, 1998 (posting 15-MOF008 on this Registry).

The Ministry of Energy is proposing to amend the Exemption Regulation to address the flow through of the applicable DRC exemption to electricity users in eligible residential units in sub-metered multi-unit complexes that are not within the licensed distribution company's residential-rate class ("Sub-metered Complexes").

Section 4.0.1 of the Exemption Regulation currently applies to Exempt Distributors. That section exempts such distributors from some of the legislative requirements applicable to licensed distribution companies, so long as they distribute the electricity for a price "no greater than that required to recover all reasonable costs".

The proposed amendment would require that "reasonable costs" in Sub-metered Complexes be calculated in a way that ensures that the amount of consumption to which the DRC exemption applies (proposed to be the lesser of the amount used or 1,500 kilowatt hours (kWh) per month multiplied by the number of "eligible residential units" in the Sub-metered Complex) is allocated by Exempt Distributors in the following manner for electricity consumed starting January 1, 2016:
-First, to each eligible residential unit, for the quantity of electricity consumed by that unit, up to a limit of 1,500 kWh per month.
-Second, any remaining amount to the common areas, for up to the full amount of electricity consumed in the common areas.
-Third, any remaining amount to the eligible residential units consuming more than 1,500 kWh per month of electricity, for up to the full amount of electricity consumed by those units, allocated on a pro rata basis (based on the amount of electricity consumed by each such unit).
-Fourth, any remaining amount would be applied to any other units in the Sub-metered Complex.

Alternatively, the order of the second and third bullet may be reversed in the regulation.

"Eligible residential units" are described in related amendments proposed by the Ministry of Finance (posting 15-MOF008 on this Registry). Clause 4.0.1(1)(a) of the Exemption Regulation would be amended if needed to capture all qualifying Sub-metered Complexes with at least one eligible residential unit.

Ontario Electricity Support Program

The proposed OESP would provide electricity rate assistance ("OESP Assistance") to eligible low-income Ontarians ("OESP Recipients") and would be implemented by the Ontario Energy Board.

In support of this proposed implementation, the Ministry of Energy is considering amending section 4.0.1 of the Exemption Regulation to address the flow-through of the applicable OESP Assistance to OESP Recipients residing in multi-unit complexes.

Exempt Distributors in Sub-Metered Complexes covered by that section would be required to calculate "reasonable costs" in a way that ensures that each OESP Recipient receives the full amount of the OESP Assistance to which they are entitled.

To capture OESP Recipients in multi-unit complexes, section 4.0.1 would be expanded if needed to include any other Sub-metered Complexes in which at least one OESP Recipient resided.
Contact Address:
77 Grenville Street
Floor 6
Toronto Ontario
M7A 2C1
Effective Date:
January 1, 2016