OEB Adjusts Electricity Commodity Prices under the RPP for Homes and Small
Businesses
TORONTO, April 15 /CNW/ - Today the Ontario Energy Board (OEB) released the electricity commodity prices that take effect May 1, 2010 under the Regulated Price Plan (RPP).
RPP prices are based on the OEB's estimate of the cost to supply electricity to residential and small business RPP consumers over 12 months. This cost is recovered in one of two ways from those consumers: through tiered pricing or time-of-use (TOU) pricing.
RPP prices, reviewed semi-annually, are reflected on the "Electricity" line of residential and small business RPP consumer bills, representing about half the total bill.
Tiered pricing will be adjusted as follows:
- 6.5 cents per kWh up to and including 600 kWh each month (750 kWh for
small business) (from 5.8 cents); and
- 7.5 cents per kWh (from 6.7 cents) above that.
When both the change in tier prices and the change in the seasonal tier threshold (from 1,000 kWh/month to 600 kWh/month) are considered, the estimated bill impact for residential RPP consumers that are on tiered pricing is about $7.60/month based on 800 kWh/month use. This change to the electricity line equates to approximately 8% on the total bill.
TOU pricing will also be adjusted as follows:
- Off-peak Price at 5.3 cents per kWh (from 4.4 cents)
- Mid-peak Price at 8.0 cents per kWh (no change)
- On-peak Price at 9.9 cents per kWh (from 9.3 cents)
The estimated bill impact of the change in TOU prices for those residential RPP consumers that are on TOU pricing is about $5.79/month based on 800 kWh/month use and average TOU consumption patterns. This change to the electricity line equates to approximately 5.8% on the total bill.
The Ontario Energy Board regulates the province's electricity and natural gas sectors in the public interest. It envisions a viable and efficient energy sector with informed consumers served by responsive regulatory processes that are effective, fair and transparent.
For more information, please refer to the attached backgrounder, visit the OEB website at www.oeb.gov.on.ca or contact the Consumer Relations Centre at 416-314-2455 or toll-free at 1-877-632-2727.
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Backgrounder
April 15, 2010
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What is the Both tiered and time-of-use prices form part of the OEB's
RPP? Regulated Price Plan (RPP). The RPP is designed to ensure
the price that residential and small business RPP
consumers pay for electricity recovers the payments made
to generators that supply the electricity they consume.
RPP prices are set to recover the total cost of that
supply, regardless of which of these prices (tiered or
time-of-use) distributors use to bill for the electricity
consumed by their RPP customers.
RPP prices, reviewed semi-annually, are reflected on the
"Electricity" line of residential and small business RPP
consumer bills, representing about half the total bill.
Consumers who buy their electricity from a retailer pay
the commodity price set out in their contracts and are
not affected by changes in RPP prices.
If you are a customer that has a retail contract, you
will also see a separate line item on your bill for what
is called the Provincial Benefit (or "Global
Adjustment"). For customers of a local utility on the
RPP, the Provincial Benefit is factored into RPP prices.
The Provincial Benefit accounts for differences between
the market price of electricity and rates paid to
regulated and contracted generators.
What is the The estimated bill impact of the revised electricity
bill impact? prices for those on tiered pricing is about $7.60/month,
based on 800 kWh/month use, when compared to the prices
that were in effect until April 30, 2010. This change to
the electricity line equates to approximately 8% on the
total bill.
The seasonal tier threshold change (from 1,000 kWh/month
to 600 kWh/month) that affects consumers on tiered
pricing accounts for about $2/month of that estimated
impact.
The estimated bill impact of the revised electricity
prices for those on time-of-use (TOU) pricing (based on
average TOU consumption patterns) is about $5.79/month,
based on 800 kWh/month use, when compared to the prices
that were in effect until April 30, 2010. This change to
the electricity line equates to approximately 5.8% on the
total bill.
Why are Primary factors contributing to the overall increase in
electricity RPP prices include:
prices
changing? - Payments going to renewable generation projects, gas
plants, as well as conservation and demand management
programs;
- New contracts for existing generation, including
support payments for fossil fuel plants and for
existing hydro generation;
- Recovery of the RPP variance account, managed by the
Ontario Power Authority (OPA), which tracks the
difference between what RPP consumers have paid versus
what has been paid to generators that supply their
electricity as well as costs associated with certain
conservation and demand management programs.
For more Electricity RPP prices are one portion of total bills and
information do not include other charges like delivery. For more
information, visit the "Your Utility" section of the
OEB's consumer website at www.oeb.gov.on.ca.
Ce document est aussi disponible en français.
For further information: Media Inquiries: Paul Crawford, Ontario Energy Board, (416) 544-5171; Public Inquiries: (416) 314-2455 Or 1-877-632-2727
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