Regulation - LGIC
Regulatory amendments to O. Reg. 196/17 (Invoicing Requirements) made under the Ontario Fair Hydro Plan Act, 2017 (OFHP) and regulatory amendments to O. Reg. 275/04 (Information on Invoices to Certain Classes of Consumers of Electricity) made under the Ontario Energy Board Act, 1998 (OEBA)
Regulation Number(s):
O. Reg. 196/17
O. Reg. 275/04
O. Reg. 275/04
Instrument Type:
Regulation - LGIC
Bill or Act:
Ontario Fair Hydro Plan Act, 2017; Ontario Energy Board Act, 1998
Summary of Proposal:
In the 2017 Long Term Energy Plan (LTEP), released on October 26, 2017, ENERGY committed to redesign electricity bills to make them more understandable and to give consumers the information that they want on the bill. ENERGY is engaging with consumers to better understand their billing preferences and has also been working with industry to solicit feedback on how to develop new invoicing requirements.
Informed by this work, ENERGY is proposing to amend current regulations that prescribe invoicing requirements in order to implement a bill that is redesigned to meet the needs of Ontario consumers. This proposal has two components: dynamic messaging of Fair Hydro Plan savings, and a new regulatory framework for electricity bills.
Dynamic Messaging
ENERGY is proposing to amend O. Reg 196/17 by amending the current information to be included on invoices and including a requirement that LDCs provide a customer-specific dynamic calculation of savings associated with the Fair Hydro Plan for each billing period invoiced.
Savings attributable to the Fair Hydro Plan would be calculated based on the prescribed methodology that includes the following components:
• Electricity: the difference between the Regulated Price Plan (RPP) prices if determined by the OEB in the normal course without taking into account any forecasted impact of the OFHP and the RPP prices set by the OEB reflecting the Fair Hydro Plan.
• Delivery Line: line loss savings associated with lower electricity prices attributable to the Fair Hydro Plan. [LDCs with customers eligible for the First Nations Delivery Credit or Distribution Rate Protection should include those savings in the total Fair Hydro Plan Savings.]
• Regulatory Line: savings associated with lowering the regulatory charge by removing the Ontario Electricity Support Program (OESP) charge and lowering the Rural and Remote Rate Protection (RRRP) charge.
• 8% rebate: savings associated with the 8% rebate, would be included in the total of Fair Hydro Plan savings. When calculating savings the 8% rebate would only be applied to the "post Fair Hydro Plan" bill.
• HST: savings associated with a lower amount of HST payable by the consumer under Part IX of the Excise Tax Act (Canada) as relates to a lower total bill post Fair Hydro Plan.
ENERGY may make consequential amendments to O. Reg. 195/17 (Fair Adjustment Under Part II of the Act) made under the OFHP to support calculation methodology.
Regulatory Framework
ENERGY is proposing to amend O. Reg. 275/04 to require that prescribed key information, including subheadings, be included on the face of the invoice. ENERGY is proposing the following key information be included: Amount owed;
Due date for payment; Amount of electricity used; Historical consumption; Contact information; Customer message center for key information.
To give LDCs and USMPs increased flexibility, ENERGY is proposing to reduce restrictions that prevent inclusion of information on bills except as prescribed. Additionally, ENERGY is proposing to revise the glossary of terms to simplify language and increase flexibility on the frequency that the glossary must be made available to consumers as part of the bill.
Informed by this work, ENERGY is proposing to amend current regulations that prescribe invoicing requirements in order to implement a bill that is redesigned to meet the needs of Ontario consumers. This proposal has two components: dynamic messaging of Fair Hydro Plan savings, and a new regulatory framework for electricity bills.
Dynamic Messaging
ENERGY is proposing to amend O. Reg 196/17 by amending the current information to be included on invoices and including a requirement that LDCs provide a customer-specific dynamic calculation of savings associated with the Fair Hydro Plan for each billing period invoiced.
Savings attributable to the Fair Hydro Plan would be calculated based on the prescribed methodology that includes the following components:
• Electricity: the difference between the Regulated Price Plan (RPP) prices if determined by the OEB in the normal course without taking into account any forecasted impact of the OFHP and the RPP prices set by the OEB reflecting the Fair Hydro Plan.
• Delivery Line: line loss savings associated with lower electricity prices attributable to the Fair Hydro Plan. [LDCs with customers eligible for the First Nations Delivery Credit or Distribution Rate Protection should include those savings in the total Fair Hydro Plan Savings.]
• Regulatory Line: savings associated with lowering the regulatory charge by removing the Ontario Electricity Support Program (OESP) charge and lowering the Rural and Remote Rate Protection (RRRP) charge.
• 8% rebate: savings associated with the 8% rebate, would be included in the total of Fair Hydro Plan savings. When calculating savings the 8% rebate would only be applied to the "post Fair Hydro Plan" bill.
• HST: savings associated with a lower amount of HST payable by the consumer under Part IX of the Excise Tax Act (Canada) as relates to a lower total bill post Fair Hydro Plan.
ENERGY may make consequential amendments to O. Reg. 195/17 (Fair Adjustment Under Part II of the Act) made under the OFHP to support calculation methodology.
Regulatory Framework
ENERGY is proposing to amend O. Reg. 275/04 to require that prescribed key information, including subheadings, be included on the face of the invoice. ENERGY is proposing the following key information be included: Amount owed;
Due date for payment; Amount of electricity used; Historical consumption; Contact information; Customer message center for key information.
To give LDCs and USMPs increased flexibility, ENERGY is proposing to reduce restrictions that prevent inclusion of information on bills except as prescribed. Additionally, ENERGY is proposing to revise the glossary of terms to simplify language and increase flexibility on the frequency that the glossary must be made available to consumers as part of the bill.
Further Information:
Proposal Number:
17-ENE012
Posting Date:
November 6, 2017
Comments Due Date:
November 27, 2017
Contact Address:
77 Grenville Street, 6th Floor
Toronto, ON
M7A 2C1
Toronto, ON
M7A 2C1