Proposed Amendment of Ontario Regulation 389/10: (General), to be made under the Energy Consumer Protection Act, 2010

Regulation Number(s):
Instrument Type:
Bill or Act:
Energy Consumer Protection Act, 2010
Summary of Decision:
The Ministry of Energy has made amendments to Ontario Regulation 541/05 (Net Metering) to enable customers to enter into power purchase agreements with eligible third-party generators, and for those third-party generators to own or operate renewable energy generation facilities, for the purposes of allowing the customer to be billed on a net metering basis.
The amendments to Ontario Regulation 389/10 are designed to cover arrangements where a customer enters into a retail contract under the third-party ownership net metering business model. The changes come into force October 1, 2018.
Further Information:
Proposal Number:
Posting Date:
November 28, 2017
Summary of Proposal:
Enhancements to Ontario's Net Metering Framework

The Province's 2017 Long-Term Energy Plan (LTEP) commits to enhance Ontario's net metering framework to give customers new ways to participate in clean, renewable electricity generation. In accordance with this commitment, the Ministry of Energy intends to expand net metering eligibility to include new ownership models and to ensure appropriate consumer protection provisions and siting restrictions are in place.

Legislative amendments to the Ontario Energy Board Act, 1998, required to expand the scope of eligible net metering ownership models, were tabled on November 14, 2017 through Bill 177, Stronger, Fairer Ontario Act (Budget Measures), 2017. Pending the passing of the proposed legislative amendments, the Ministry of Energy intends to propose regulatory changes to enable these new ownership models, as well as other regulatory measures in support of an expanded and enhanced net metering framework, as follows:

• Enable third-party ownership of net-metered generation facilities and virtual net metering demonstration projects;

• Adapt and enhance the existing energy consumer protection framework to support the introduction of third-party ownership arrangements; and

• Ensure that prescribed types of renewable energy generation facilities are sited appropriately.

The Ministry of Energy invites input on this regulatory proposal and corresponding regulatory proposals (posted separately and linked in the Additional Information section of this posting) to inform changes to Ontario's net metering framework.
Contact Address:
Effective Date:
May 8, 2018