Toronto Hydro Condo Electric Bills Rise by 4% for 2019
On January 1st, Toronto Hydro announced increases to their distribution rates. These increases were significant, so we asked our energy manager to provide some background on the impact on condominium budgets. Here are his comments:
- Although these increases in distribution rates are large, let us not forget that most condos saw their bills decrease by about 20% thanks to the Fair Hydro Plan in 2017. Those changes were highlighted in a May 2017 blog post.
- To understand the impact of the Jan 1/19 increases, it is important to know that the electricity bill is made up of two main parts:
- Electricity – This rate covers the cost of generating electricity, and the rate is controlled by the province; and
- Delivery – This rate covers the cost to bring the electricity from the provincial grid to your light bulb. These rates are set by each utility with the approval of the Ontario Energy Board (OEB).
- While the cost of the electricity hasn’t changed much (if at all) since 2017, Toronto Hydro received approval by the OEB to increase their delivery rates by 20% – starting January 1st, 2019.
- The Toronto Hydro increase does not mean the bills are going up by 20%. Factoring everything into our budget template, the increasing delivery rates will cause the bill to go up by about 4% year-over-year.