No Change to Residential Electricity Rates – BUT - OER is Lowered Again
Ontario’s regulated electricity rates are typically reviewed by the Ontario Energy Board (OEB) twice per year – May 1st and November 1st.
Although the OEB announced there would be no change to the posted residential electricity prices effective November 1st, they also announced that the Ontario Electricity Rebate will be reduced from about 19% to 17%. The combination of these two price announcements will effectively raise rates by 2% for those on regulated residential rates on Nov 1st.
Crossbridge’s budget templates have been updated with this new information.
The commercial electricity market was signaling lower prices, so the OEB’s announcement of “no change” to the residential price was a bit of a surprise. Perhaps the next OEB announcement, scheduled for May 1, 2022 before the Ontario provincial election, will contain some rate relief for residential customers. However, it’s reasonable that the government will also continue their trend of lowering the OER further on May 1, which will buffer the impact of any lower posted electricity prices.