PowerStream Inc.

PowerStream Inc.

April 29, 2014 07:37 ET

OEB Adjusts Electricity Prices Charged to Ontario Consumers

New prices set by province's energy regulator to become effective May 1, 2014

VAUGHAN, ONTARIO--(Marketwired - April 29, 2014) - The Ontario Energy Board (OEB) recently announced adjustments in electricity prices for all residential and small business customers in Ontario effective May 1, 2014.

The new prices will see customers, on time-of-use ("TOU") pricing, charged as follows:

  • Off-peak (7 p.m. to 7 a.m. weekdays, weekends & statutory holidays) = 7.5¢/kWh (an increase of 0.3¢);
  • Mid-peak (7 a.m. to 11 a.m. and 5 p.m. to 7 p.m. weekdays) = 11.2¢/kWh (an increase of 0.3¢);
  • On-peak (11 a.m. to 5 p.m. weekdays) = 13.5¢/kWh (an increase of 0.6¢).

Customers who are still being billed using two tiered-pricing structures will have their electricity prices charged as follows:

  • 8.6¢/kWh for the first 600 kWh (residential only) consumed each month (an increase of 0.3¢);
  • 10.1¢/kWh above that (an increase of 0.4¢).

Note: The monthly consumption threshold for small businesses stays at 750 kWh/month all year.

Ontario electricity distribution companies, like PowerStream, purchase the electricity that they deliver to customers at market or regulated prices and bill customers for the cost of the purchased electricity. PowerStream recovers its operational costs through distribution rates embedded in the 'Delivery' portion of electricity bills. Distribution charges, the only part of the bill that PowerStream has control over, account for approximately 20% of a typical residential customer's total bill.

The new prices set by the Ontario Energy Board (OEB) will cost the average Ontario residential customer who uses 800 kWh of electricity per month, approximately $2.83 more per month on the 'Electricity' line of their bill.

The Ontario Clean Energy Benefit (OCEB), which offers an opportunity to receive a 10% reduction on all residential and small business customers' electricity bills for consumption of the first 3,000 kWh monthly, will continue through 2014. Those customers, who purchase their electricity from an energy retailer, will continue to pay electricity rates and charges in accordance with their retail contracts.

BACKGROUND

  • The OEB reviews prices for households and small businesses twice each year, on May 1 and November 1. The price changes only affect households and small businesses who buy electricity from their local utility.
  • Electricity prices make up about half the total of an average household bill. These electricity prices are shown on one of the five line items on bills - the 'Electricity' line (the others are 'Delivery', 'Regulatory' charges, 'Debt Retirement Charge' and 'Ontario Clean Energy Benefit').

ABOUT POWERSTREAM

PowerStream is a community-owned energy company that provides power and related services to more than 365,000 customers residing or owning a business in communities located immediately north of Toronto and in Central Ontario. It is jointly owned by the Cities of Barrie, Markham and Vaughan.

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