Regulation - LGIC
Proposal to amend Ontario Regulation 95/05 (Classes of Consumer and Determination of Rates) made under Ontario Energy Board Act, 1998.
Regulation Number(s):
Ontario Regulation 95/05
Instrument Type:
Regulation - LGIC
Bill or Act:
Ontario Energy Board Act, 1998, S.O. 1998, c. 15, Sched. B
Summary of Proposal:
Since April 2005, the Ontario Energy Board (OEB) has administered an electricity price plan that provides stable and predictable electricity pricing, encourages conservation and ensures the price consumers pay for electricity better reflects the price paid to generators. This pricing plan is known as the Regulated Price Plan (RPP). About 4.9 million residential and low-volume business consumers are eligible for the RPP.
Today, almost all RPP-eligible consumers have smart meters and over 96 percent pay under the time-of-use (TOU) structure in the RPP. The remaining RPP-eligible consumers are billed under the RPP's tiered pricing structure or a separate retail contract.
There are three TOU pricing periods. Off-peak, when energy demand is low and less expensive sources of electricity are used. Mid-peak, when the cost of energy and demand are moderate. And on-peak, when demand is highest and more expensive forms of electricity production are used to meet demand.
The OEB has developed a five-point multi-year Roadmap to redesign the RPP to better respond to policy objectives, improve system efficiency and give consumers greater control. This comprehensive revamping of the RPP would make incremental changes over the course of the plan. This staged approach would provide consumers with an adequate amount of time to understand and adapt to any changes in the TOU pricing structure.
One of the major elements of the Roadmap is implementation of pilots for new pricing structures and non-price mechanisms. The pilots are essential to (1) determining the best pricing options and structures to achieve policy objectives and empower electricity consumers, and (2) to designing new tools for customers to manage their electricity usage and provide for increased system efficiency. The pricing pilots would test different TOU structures that are not currently permitted by Ontario Regulation 95/05 (Classes of Consumers and Determination of Rates). Specifically, O. Reg. 95/05 requires that TOU prices under the RPP have an off-peak period that begins no later than 7pm and ends no earlier than 7am on weekdays and begins no later than 12am and ends no earlier than 12am on weekends and holidays. There are currently no exceptions permitted to this requirement.
Today, almost all RPP-eligible consumers have smart meters and over 96 percent pay under the time-of-use (TOU) structure in the RPP. The remaining RPP-eligible consumers are billed under the RPP's tiered pricing structure or a separate retail contract.
There are three TOU pricing periods. Off-peak, when energy demand is low and less expensive sources of electricity are used. Mid-peak, when the cost of energy and demand are moderate. And on-peak, when demand is highest and more expensive forms of electricity production are used to meet demand.
The OEB has developed a five-point multi-year Roadmap to redesign the RPP to better respond to policy objectives, improve system efficiency and give consumers greater control. This comprehensive revamping of the RPP would make incremental changes over the course of the plan. This staged approach would provide consumers with an adequate amount of time to understand and adapt to any changes in the TOU pricing structure.
One of the major elements of the Roadmap is implementation of pilots for new pricing structures and non-price mechanisms. The pilots are essential to (1) determining the best pricing options and structures to achieve policy objectives and empower electricity consumers, and (2) to designing new tools for customers to manage their electricity usage and provide for increased system efficiency. The pricing pilots would test different TOU structures that are not currently permitted by Ontario Regulation 95/05 (Classes of Consumers and Determination of Rates). Specifically, O. Reg. 95/05 requires that TOU prices under the RPP have an off-peak period that begins no later than 7pm and ends no earlier than 7am on weekdays and begins no later than 12am and ends no earlier than 12am on weekends and holidays. There are currently no exceptions permitted to this requirement.
Further Information:
Link to Environmental Registry
Proposal Number:
16-ENE006
Posting Date:
September 15, 2016
Comments Due Date:
October 31, 2016