TORONTO, Oct. 17, 2012 /CNW/ - Today the Ontario Energy Board released Regulated Price Plan (RPP) electricity commodity prices that take effect November 1, 2012. RPP prices apply to residential and small business consumers who buy electricity directly from their local utility.
Time-of-use (TOU) prices are changing as follows:
| On-peak (from 7 a.m. to 11 a.m. and 5 p.m. to 7 p.m. weekdays) | = 11.8 ¢/kWh (↑ 0.1 cent) |
| Mid-peak (from 11 a.m. to 5 p.m. weekdays) Off-peak (from 7 p.m. to 7 a.m. weekdays and all day on weekends and holidays) |
= 9.9 ¢/kWh (↓ 0.1 cent) = 6.3 ¢/kWh (↓ 0.2 cent) |
The price change for consumers on TOU pricing is a decrease of approximately $1.02 on the "Electricity" line, or about 0.8% on the total monthly bill, for a residential consumer with a typical consumption pattern who uses 800 kWh per month. Residential consumers typically consume about 64% of their electricity during off-peak hours, and about 18% in each of the mid-peak and on-peak periods.
The main reason for the decrease in electricity prices is that the actual cost of electricity for RPP consumers during April 2012 through September 2012 was less than the forecast cost that was used to set the RPP prices for that period. The difference has been taken into account in setting the new RPP prices.
As of September 30, 2012, approximately 4.4 million (92%) residential and small business customers were on TOU billing. RPP prices for consumers that are still on tiered pricing are also decreasing effective November 1, 2012.
Overall bill changes during the past year remain within the province's Long-Term Energy Plan cost projections.
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.ontarioenergyboard.ca or contact our Consumer Relations Centre at 416-314-2455 or toll-free at 1-877-632-2727.
With links to
Graphic of TOU Price chart:
http://www.ontarioenergyboard.ca/OEB/_Documents/For%20Consumers/TOU_prices_Winter.pdf
RPP video :
http://www.youtube.com/watch?feature=player_embedded&v=My1it7q-gVo
TOU video
http://www.youtube.com/watch?feature=player_embedded&v=bJ04SSArI6c
Backgrounder
| October 17, 2012 | |
| About the RPP | Prices set under the Ontario Energy Board's (OEB) Regulated Price Plan (RPP) apply to residential and small business consumers who do not have a contract with an electricity retailer. Both time-of-use (TOU) and tiered RPP prices are set to recover the total cost of supply, regardless of which of these prices (tiered or TOU) distributors use to bill their RPP consumers. RPP prices are reviewed twice per year and are adjusted as required on May 1 and November 1. They make up about half the total bill and are shown on the "Electricity" line of bills. |
| TOU pricing | TOU pricing better reflects the cost of electricity supply. Prices in the market rise and fall during the day based on demand and the type of supply available. When demand is lower, less expensive sources of electricity are used. When demand rises, more expensive forms of electricity production are called upon. TOU prices take into account when, as well as how much electricity a consumer uses, as recorded by the consumer's smart meter. Time-of-use pricing is designed to encourage consumers to shift electricity use from high price periods (on-peak) to lower price periods (mid-peak and off-peak). About 92 percent of RPP-eligible consumers are now paying time-of-use prices. Those who aren't should check with their utility for information on when TOU pricing will start. |
| Winter & Summer TOU | View this graphic online: http://www.ontarioenergyboard.ca/OEB/_Documents/For+Consumers/TOU_prices_Winter.pdf The TOU price periods change from summer to winter to better reflect seasonal consumption patterns. As such, in the winter season (November 1 - April 30) there are two peak periods, from 7 a.m. to 11 a.m. and from 5 p.m. to 7 p.m., on weekdays, while there is only one in the summer (May 1 - October 31), from 11 a.m. to 5 p.m. on weekdays. Consumers who are not yet paying TOU prices pay tiered prices, which are changing as follows: For consumption up to the tier threshold: 7.4 ¢/kWh (↓ 0.1 cent) For consumption above the tier threshold: 8.7 ¢/kWh (↓ 0.1 cent) The tier threshold increases for residential consumers during the winter period (1,000 kWh per month instead of 600 kWh). The tier threshold for non-residential consumers remains at 750 kWh throughout the year. |
| Bill impact | The price change for consumers on TOU pricing is a decrease of approximately $1.02 on the "Electricity" line, or about 0.8% on the total monthly bill, for a residential consumer with a typical consumption pattern who uses 800 kWh per month. Residential consumers typically consume about 64% of their electricity during off-peak hours, and about 18% in each of the mid-peak and on-peak periods. Overall bill changes during the past year remain within the province's Long-Term Energy Plan cost projections. |
| What's affecting prices | The main reason for the decrease in electricity prices is that the actual cost of electricity for RPP consumers during April 2012 through September 2012 was less than the forecast cost that was used to set the RPP prices for that period. The difference has been taken into account in setting the new RPP prices. |
| Forecasting electricity supply costs and prices | To calculate RPP prices, the OEB forecasts the cost to supply electricity to residential and small business consumers for the next 12 months. These forecasts, which assume normal weather conditions, include factors such as: • forecast fuel prices such as natural gas and coal; • supply forecasts from each type of generation (nuclear, hydroelectric, coal, natural gas, etc.); and • electricity demand or consumption forecast; and • any variance recovery (the over/under-collected electricity costs) from the previous period. |
| For more information | RPP prices are one portion of total electricity bills and do not include other charges like delivery. For more information, visit the Your Utility section of the OEB's consumer website at www.ontarioenergyboard.ca. |
Video with caption: "Video: What is RPP pricing?". Video available at: http://www.youtube.com/watch?feature=player_embedded&v=My1it7q-gVo
Video with caption: "Video: What is time-of-use pricing?". Video available at: http://www.youtube.com/watch?feature=player_embedded&v=bJ04SSArI6c
Image with caption: "TOU price chart (CNW Group/Ontario Energy Board)". Image available at: http://photos.newswire.ca/images/download/20121017_C7806_PHOTO_EN_19497.jpg
SOURCE: Ontario Energy Board
For more information, please contact:
Media Inquiries
Paul Crawford
Ontario Energy Board
416-544-5171
Public Inquiries
416-314-2455
Or 1-877-632-2727
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