Act
Keeping Penalties off Rates
Regulation Number(s):
N/A
Instrument Type:
Act
Bill or Act:
Ontario Energy Board Act, 1998
Summary of Decision:
The Government is committed to ensuring critical infrastructure is built as soon as possible while protecting energy ratepayers from paying for penalties or fines imposed on an electricity or gas transmitter or distributor that has failed to comply with requirements arising from its statutory obligations.
The OEBA already included statutory provisions to exclude certain penalties or fines arising from the Building Transit Faster Act, 2020 and the Building Broadband Faster Act, 2021 from being included in the fixing of just and reasonable rates for electricity or gas transmitters or distributors. O. Reg. 14/23 (Administrative Penalties) made under the Ontario Underground Infrastructure Notification System Act, 2012 applies to electricity and gas transmitters and distributors as of April 1, 2023.
The OEBA has been amended to make it clear that fines imposed under an Act or regulation are not to be recovered through rates. The amendments reflect the Government's goal of ensuring ratepayers do not pay for an electricity or gas transmitter or distributor's failure to comply with its statutory obligations. The amendments are also intended to further incentivize electricity or gas transmitters or distributors to appropriately prioritize those works where the Government has established a penalty regime.
The amendments also introduced regulatory powers to exempt certain penalties and fines from this provision and to expand the list of prohibitions to cover other amounts if it is in the interest of Ontario.
The OEBA already included statutory provisions to exclude certain penalties or fines arising from the Building Transit Faster Act, 2020 and the Building Broadband Faster Act, 2021 from being included in the fixing of just and reasonable rates for electricity or gas transmitters or distributors. O. Reg. 14/23 (Administrative Penalties) made under the Ontario Underground Infrastructure Notification System Act, 2012 applies to electricity and gas transmitters and distributors as of April 1, 2023.
The OEBA has been amended to make it clear that fines imposed under an Act or regulation are not to be recovered through rates. The amendments reflect the Government's goal of ensuring ratepayers do not pay for an electricity or gas transmitter or distributor's failure to comply with its statutory obligations. The amendments are also intended to further incentivize electricity or gas transmitters or distributors to appropriately prioritize those works where the Government has established a penalty regime.
The amendments also introduced regulatory powers to exempt certain penalties and fines from this provision and to expand the list of prohibitions to cover other amounts if it is in the interest of Ontario.
Analysis of Regulatory Impact:
The Ministry has completed its final regulatory impact analysis. There are no direct compliance costs expected to arise from these amendments.
This amendment will help keep rates predictable and low, supporting all Ontarians and businesses. Energy affordability would in turn support economic development for businesses and savings for Ontarians.
This amendment will help keep rates predictable and low, supporting all Ontarians and businesses. Energy affordability would in turn support economic development for businesses and savings for Ontarians.
Further Information:
Bill 91: Less Red Tape, Stronger Economy Act, 2023
Proposal Number:
23-ENDM013
Posting Date:
April 3, 2023
Summary of Proposal:
The Government is committed to ensuring critical infrastructure is built as soon as possible while protecting energy ratepayers from paying for penalties or fines imposed on an electricity or gas transmitter or distributor that has failed to comply with requirements arising from its statutory obligations.
The OEBA currently includes statutory provisions to exclude certain penalties or fines arising from the Building Transit Faster Act, 2020 and the Building Broadband Faster Act, 2021 from being included in the fixing of just and reasonable rates for electricity or gas transmitters or distributors. O. Reg. 14/23 (Administrative Penalties) made under the Ontario Underground Infrastructure Notification System Act, 2012 will apply to electricity and gas transmitters and distributors as of April 1, 2023.
The proposed amendments would make it clear that fines imposed under an Act or regulation are not to be recovered through rates. The proposed amendments to the OEBA reflect the Government's goal of ensuring ratepayers do not pay for an electricity or gas transmitter or distributor's failure to comply with its statutory obligations. The proposed amendments are also intended to further incentivize electricity or gas transmitters or distributors to appropriately prioritize those works where the Government has established a penalty regime.
The proposed amendments would, if passed, also introduce regulatory powers to exempt certain penalties and fines from this provision and to expand the list of prohibitions to cover other amounts if it is in the interest of Ontario.
The OEBA currently includes statutory provisions to exclude certain penalties or fines arising from the Building Transit Faster Act, 2020 and the Building Broadband Faster Act, 2021 from being included in the fixing of just and reasonable rates for electricity or gas transmitters or distributors. O. Reg. 14/23 (Administrative Penalties) made under the Ontario Underground Infrastructure Notification System Act, 2012 will apply to electricity and gas transmitters and distributors as of April 1, 2023.
The proposed amendments would make it clear that fines imposed under an Act or regulation are not to be recovered through rates. The proposed amendments to the OEBA reflect the Government's goal of ensuring ratepayers do not pay for an electricity or gas transmitter or distributor's failure to comply with its statutory obligations. The proposed amendments are also intended to further incentivize electricity or gas transmitters or distributors to appropriately prioritize those works where the Government has established a penalty regime.
The proposed amendments would, if passed, also introduce regulatory powers to exempt certain penalties and fines from this provision and to expand the list of prohibitions to cover other amounts if it is in the interest of Ontario.
Contact Address:
Ministry of Energy
77 Grenville Street, 6th Floor, Toronto ON M7A 2C1
77 Grenville Street, 6th Floor, Toronto ON M7A 2C1
Royal Assent Date:
June 8, 2023
Decision:
Approved