Implementation of COVID-19 Recovery Rate for Regulated Price Plan and Time-of-Use Electricity Customers
Regulation - LGIC
Bill or Act:
Emergency Management and Civil Protection Act, 1990
Summary of Decision:
Analysis of Regulatory Impact:
Summary of Proposal:
On March 17, 2020, the Government of Ontario made an order declaring an emergency (the "Emergency Declaration") under section 7.0.1 (1) the Emergency Management and Civil Protection Act to respond to the COVID-19 outbreak.
As a result of the emergency, the government instituted physical distancing policies, including school and non-essential business closures and work from home policies. The government recognized that these policies would result in increased electricity use during the day for residential customers, and that small businesses and farms, whether they are open or closed, continued to have electricity costs and needed help.
On March 24, 2020, the government responded by suspending TOU rates, holding electricity prices to the lowest rate, known as the off-peak rate, of 10.1 cents per kilowatt hour, available 24 hours a day, seven days a week for an intended 45-day period. This off-peak price period was enabled by Emergency Order (Ontario Regulation 80/20) made under subsection 7.0.2(4) of the Emergency Management and Civil Protection Act, 1990 (EMCPA).
On May 6, 2020 the government announced its intention to extend the off-peak TOU rate to the end of day on May 31, 2020.
As Ontarians and their families continued to spend more time at home, on May 30, 2020, the government announced it would continue the time-of-use suspension by introducing the flat COVID-19 Recovery Rate for TOU customers beginning June 1, 2020. The COVID-19 Recovery Rate will provide Ontarians greater flexibility to use electricity during all periods of the day as people continue to adjust their day-to-day schedules and the economy recovers from the COVID-19 outbreak.
The government worked with the Ontario Energy Board and Local Distribution Companies (LDCs) to implement the COVID-19 Recovery Rate quickly to provide immediate electricity stability and predictability to families and businesses impacted by COVID-19.
June 8, 2020