Regulation - LGIC
Ontario Electricity Rebate percentage adjustment effective November 1, 2021
Regulation Number(s):
363/16
Instrument Type:
Regulation - LGIC
Bill or Act:
Ontario Rebate for Electricity Consumers Act, 2016
Summary of Decision:
The Ontario Electricity Rebate (OER) is applied to the bills of eligible consumers, including households, small businesses, long-term care homes and farms. It provides a significant reduction in electricity costs for eligible consumers.
The OER was introduced in November 2019 as a replacement for the previous 8% rebate and former Global Adjustment (GA) Refinancing program.
Effective November 1, 2021, the OER will be changed to 17.0%. The OER is a pre-tax credit that appears at the bottom of electricity bills. For a typical residential customer who uses 700 kWh of electricity per month the OER would decrease bills by about $20.90 each month. Different consumers will experience different changes in their bill depending on other components of the bill, such as consumption levels and the distribution rates that vary by Local Distribution Company (LDC).
From an end-user perspective, no action is required on the part of consumers receiving the OER. LDCs and other electricity service providers include the OER automatically on the bills of most eligible consumers.
LDCs and other electricity service providers are required to adjust their billing systems to reflect the new OER percentage, resulting in relatively small administrative compliance costs for LDCs. LDCs have performed this function in the past as the OER is periodically adjusted. This periodic administrative cost is consistent with the original design of the program.
The OER was introduced in November 2019 as a replacement for the previous 8% rebate and former Global Adjustment (GA) Refinancing program.
Effective November 1, 2021, the OER will be changed to 17.0%. The OER is a pre-tax credit that appears at the bottom of electricity bills. For a typical residential customer who uses 700 kWh of electricity per month the OER would decrease bills by about $20.90 each month. Different consumers will experience different changes in their bill depending on other components of the bill, such as consumption levels and the distribution rates that vary by Local Distribution Company (LDC).
From an end-user perspective, no action is required on the part of consumers receiving the OER. LDCs and other electricity service providers include the OER automatically on the bills of most eligible consumers.
LDCs and other electricity service providers are required to adjust their billing systems to reflect the new OER percentage, resulting in relatively small administrative compliance costs for LDCs. LDCs have performed this function in the past as the OER is periodically adjusted. This periodic administrative cost is consistent with the original design of the program.
Analysis of Regulatory Impact:
The Ontario Electricity Rebate (OER) is applied to the bills of eligible consumers, including households, small businesses, long-term care homes and farms. It provides a significant reduction in electricity costs for eligible consumers.
The OER was introduced in November 2019 as a replacement for the previous 8% rebate and former Global Adjustment (GA) Refinancing program.
Effective November 1, 2021, the OER will be changed to 17.0%. The OER is a pre-tax credit that appears at the bottom of electricity bills. For a typical residential customer who uses 700 kWh of electricity per month the OER would decrease bills by about $20.90 each month. Different consumers will experience different changes in their bill depending on other components of the bill, such as consumption levels and the distribution rates that vary by Local Distribution Company (LDC).
From an end-user perspective, no action is required on the part of consumers receiving the OER. LDCs and other electricity service providers include the OER automatically on the bills of most eligible consumers.
LDCs and other electricity service providers are required to adjust their billing systems to reflect the new OER percentage, resulting in relatively small administrative compliance costs for LDCs. LDCs have performed this function in the past as the OER is periodically adjusted. This periodic administrative cost is consistent with the original design of the program.
The OER was introduced in November 2019 as a replacement for the previous 8% rebate and former Global Adjustment (GA) Refinancing program.
Effective November 1, 2021, the OER will be changed to 17.0%. The OER is a pre-tax credit that appears at the bottom of electricity bills. For a typical residential customer who uses 700 kWh of electricity per month the OER would decrease bills by about $20.90 each month. Different consumers will experience different changes in their bill depending on other components of the bill, such as consumption levels and the distribution rates that vary by Local Distribution Company (LDC).
From an end-user perspective, no action is required on the part of consumers receiving the OER. LDCs and other electricity service providers include the OER automatically on the bills of most eligible consumers.
LDCs and other electricity service providers are required to adjust their billing systems to reflect the new OER percentage, resulting in relatively small administrative compliance costs for LDCs. LDCs have performed this function in the past as the OER is periodically adjusted. This periodic administrative cost is consistent with the original design of the program.
Further Information:
Proposal Number:
21-ENDM035
Posting Date:
Summary of Proposal:
The Ontario Electricity Rebate (OER) is applied to the bills of eligible consumers, including households, small businesses, long-term care homes and farms. It provides a significant reduction in electricity costs for eligible consumers.
The OER was introduced in November 2019 as a replacement for the previous 8% rebate and former Global Adjustment (GA) Refinancing program.
The OER was introduced in November 2019 as a replacement for the previous 8% rebate and former Global Adjustment (GA) Refinancing program.
Contact Address:
77 Grenville St, 7th floor, Toronto, M7A 2C1
Effective Date:
November 1, 2021
Decision:
Approved