2019-Aug-24
Huge Jumps in Hydro Bills if the Seasonal Rate Class Is Eliminated
The Ontario Energy Board (OEB) has directed Hydro One to eliminate the seasonal rate class affecting secondary and seasonal use properties, but Hydro One is recommending an alternative approach – read about it here.
Eliminating the seasonal rate class means that the majority of current seasonal rate customers would be reclassified into one of two other rate categories depending on their location: R1 class for properties located in medium density areas, or R2 class for properties in low density areas. Customers moving to the R1 class would see a slight decrease in their monthly distribution charges because R1 designates an area of higher population and concentration and is therefore easier to service. These customers would see a decrease in their annual hydro bills estimated at $7 – $9 per month. The majority of consumers in more rural areas, upwards of 78,000, would be moved into the R2 rate class and face steep increases estimated at as much as 129% or more than $1000 annually.
Realizing the backlash and the complications with this implementation, Hydro One has submitted a counter-proposal to the OEB to mitigate some of the effects of eliminating the seasonal class rate. The utility is proposing to keep the seasonal class in place until another planned change comes into effect: after 2021, all Hydro One customers will pay fixed distribution rates. Until that change occurs, Hydro One would cap rates for high-volume customers.
Hydro rates are going up, it’s just a matter of when and by how much. GBA is carefully monitoring this issue and awaiting the decision from the OEB, which should be later in August. Stay tuned!