Ottawa residents will be paying more to turn on the lights this year. The Ontario Energy Board has approved Hydro Ottawa’s application to raise distribution rates by $5.87 a month in 2026. The increase is retroactive to Jan. 1, and an extra $1.80 a month will be added to bills until May 31, 2027 due to the delayed approval, according to the board. Hydro Ottawa initially submitted an application in May 2025 to raise distribution rates by $6.08 a month in 2026, with increases of between $2.72 and $3.79 a month between 2027 and 2030. However, the Ontario Energy Board rejected the utility’s proposed increase due to affordability for consumers, saying the 16 per cent increase in rates in 2026 was “significantly above inflation and would not result in a just and reasonable increase for customers.” The Ontario Energy Board tells CTV News Ottawa the $5.87 a month increase is just for 2026. Hydro Ottawa will need to apply to the board each year for their distribution rates to be increased. "The OEB’s decision reflects a careful, evidence‑based review of Hydro Ottawa’s application,“ Carolyn Calwell, Chief Executive Officer of the Ontario Energy Board, said in a statement. “By reducing costs where appropriate and approving changes that support reliability, the OEB has ensured that rates remain just and reasonable while maintaining the quality of service customers rely on. Our process is designed to balance the long-term needs of the energy system with the stability and regulatory certainty that support Ontario’s economic growth.” Hydro Ottawa said the distribution rate increase was needed for capital investments, “driven by the necessity to modernize and expand the grid to meet evolving community needs and address climate change.” The utility was focusing on four investment areas in its plan - growth and electrification – powering a growing community, renewing deteriorating infrastructure, grid modernization – enabling the energy transition, and enhancing resilience. The Ontario Energy Board says every five years, a utility applies to the Ontario Energy Board to change the the rates they charge customers. “In this process, the utility outlines all of the costs of running the system, including day-to-day operations, staff, and investments in infrastructure like poles, wires, and equipment,” the OEB said. “This proceeding sets rates for 2026 but contains a forward-looking view until 2030.”
