Electricity rates dropping this winter in Ontario

Cost of electricity to decrease next month Ontario Energy Board announces price reduction starting Nov. 1. CTV London's Scott Miller explains how it could impact you.

It may seem impossible to believe that the price of anything is going down these days, but this winter, Ontarians should pay less for electricity.

“Electricity has been a challenge for many years for people, so to actually have something come down in price is quite amazing, quite surprising actually,” says Francesca Dobbyn, executive director with the Bruce-Grey United Way.

The Ontario Energy Board has decreased electricity rates starting Nov. 1.

On-peak prices for time of use customers is dropping from $0.17/kWh last winter, to $0.15/kWh this winter. Tiered pricing will also fall, about $0.01/kWh, which could save Ontario households hundreds of dollars this winter.

But, those savings could get eaten up by the rising cost of electricity delivery charges, along with propane, oil and natural gas heating, which has doubled in price over last winter.

“We’ve seen a major increase in average arrears for electricity and heating from last year. In the previous 12 months, $1,000 was the average bill people were coming to us with, and this year it’s $2,500, which is an incredible jump,” says Dobbyn.

Mandatory minimum deliveries of heating oil has left some homeowners with the real possibility of no heat this winter.

“We’re having to tell people applying to our programs to go find another $500, all at once, in one lump sum, to pay their companies, and then we will pay the balance. This is going to be a challenge for our households,” Dobbyn adds.

That being said, a drop in electricity rates is better than a jump in the price of power, says Dobbyn, no matter how small.

“Anytime the price in anything comes down right now, it’s a reason to celebrate,” she says.

You can learn more about the decline Ontario’s electricity rate at the Ontario Energy Board website.