Great news for Ontario retailers – Ontario reduces Hydro rates on average by 25% commencing in the summerPrint
Ontario announced today that starting this summer, electricity bills will be reduced by 25 per cent on average for businesses and households across Ontario. Going forward, hydro bills won’t increase beyond the rate of inflation for at least the next four years. Retailers could benefit from this change as consumers will have additional money in their pockets to spend.
This is positive news for retailers as RCC in its Ontario 2017 pre-budget submission had stressed to the government it needs to re-assess the electricity pricing strategy with a view to making the rates more competitive relative to other jurisdictions.
The 25 per cent reduction includes the 8 per cent rebate of the provincial portion of the harmonized sales tax that took effect on Jan. 1, 2017.
To relieve the current burden on ratepayers and share costs more fairly, a portion of the Global Adjustment (GA) is being refinanced. Refinancing the GA provides rate relief by spreading the cost of electricity investments over the expected lifecycle of the infrastructure that has been built. Under current forecasts, the immediate reduction in the GA would be about $2.5 billion per year on average over the first 10 years.
Retail Council of Canada will continue to work with the government to ensure future hydro rates are competitive to attract and keep businesses in the Province.
If you have any questions or concerns, please don’t hesitate to contact: Gary Rygus, Director Government Relations (Ontario) at: [email protected] or 416-467-3744