Ontario hydro bills going down in May as low-income support charge shifts to tax base
A Hydro One worker manoeuvres his way through branches as his crew work to restore power to a house in a Scarborough neighbourhood on Friday, Dec. 27, 2013. (Chris Young / THE CANADIAN PRESS)
The Canadian Press
Published Friday, April 21, 2017 4:13PM EDT
Last Updated Friday, April 21, 2017 4:29PM EDT
TORONTO - The Ontario Energy Board says that starting in May, electricity ratepayers will see some of the reductions from the government's promise to cut bills by an average of 17 per cent.
Average customers using 750 kilowatt hours per month, will see bills of about $127.
The OEB says that is about nine per cent lower, due to parts of the government's hydro plan that don't require new legislation, including removing a charge that funds a low-income support program, as that will be funded from the tax base now.
The Liberal government announced its plan to reduce electricity bills by an average of 17 per cent in early March, but still has not introduced the legislation that would enable much of it.
Most of the reductions are coming from taking $2.5 billion a year off the global adjustment charge -- to be paid back down the road with interest. The global adjustment is the charge consumers pay for above-market rates for power producers, which the government says ensures a reliable supply.
The OEB says it is reducing the forecast amount of the global adjustment by $1 billion for now and will further reduce the charge later.