Proposed Implementation of an Ultra-Low Overnight Electricity Price Plan for Regulated Price Plan Consumers
Bill or Act:
Ontario Energy Board Act, 1998
Summary of Proposal:
The proposed launch date for the ultra-low overnight price plan is May 1, 2023. To implement the new price plan, the Ministry of Energy is proposing regulatory amendments to O. Reg. 95/05 under the Ontario Energy Board Act, 1998 that would, if approved:
• set out key parameters for the OEB in determining rates for consumers under the new price plan.
• require distributors to offer RPP consumers a choice among TOU, Tiered, and the new ultra-low overnight price plans no later than November 1, 2023. Those distributors who can, may begin charging the new price plan to their customers starting on May 1, 2023.
• require the OEB to set rates for the ultra-low overnight price plan that apply between May 1 and October 31, 2023. New RPP rates normally take effect annually on November 1.
The proposed ultra-low overnight price plan would be distinct from the existing price plans, with a different set of price periods and different rates for at least some of those periods. Consistent with the OEB's report to the minister, the design of the proposed new price plan would include four price periods:
1. Ultra-low overnight price period that applies from 11:00 PM-7:00 AM on weekdays, weekends, and holidays throughout the year;
2. On-peak price period;
3. Mid-peak price period; and
4. Weekend off-peak price period.
Analysis of Regulatory Impact:
This proposed regulatory change would not introduce a new mandatory administrative burden on small businesses and farms since the proposed initiative would be voluntary and optional for consumers.
By offering RPP consumers an expanded choice for their electricity pricing plans, these consumers would be able to choose a plan that best fits their individual needs, which could result in some cost savings. However, actual savings each month would depend on consumption patterns and amounts, and the OEB has a regulatory obligation to ensure that electricity prices are set in a manner that ensures electricity system cost recovery.
This proposed change does not impact large commercial and industrial businesses, who do not pay for electricity through the RPP.
August 10, 2022
Comments Due Date:
September 24, 2022
The government has established regulatory requirements that require the Ontario Energy Board to direct electricity distributors to implement a new voluntary ultra-low overnight price plan for Regulated Price Plan (RPP) consumers, which includes households, small businesses, and farms.