Ontario Energy Board rule change could see hydro rates for cottage owners jump
Board wants to eliminate seasonal rate class
A change being proposed by Ontario's electricity rate regulator could result in cottage owners who have property hooked up to the provincial energy grid paying a lot more for power.
The Ontario Energy Board (OEB) has told Hydro One it wants to eliminate the seasonal rate class for property owners, said Imran Merali, the utility's vice-president of customer care.
"For about 54 per cent of our seasonal customers, it would result in an increase of about $1,000 per year in their annual electricity bills," Merali said.
Counter-proposal
He said delivery charges are typically determined based on customer density; meaning, the number of customers per kilometre of power line.
"There's three residential rate classes: urban residential, medium density, and low density," Merali said. "And there's also a seasonal rate class."
"The Ontario Energy Board's proposal was to eliminate the seasonal rate class, and move customers into the other existing residential rate classes," he said. "Moving customers from a seasonal rate class to, in particular, the low-density rate class, that's what triggering the significant increase in customers' bills."
Merali said he isn't entirely sure why the OEB wants to eliminate the seasonal rate class, but did say Hydro One has been "advocating against it since 2015."
Formal process starting soon
He said Hydro One has filed a proposal of its own, one that would see annual increases of about $65 per year for most of its customers.
"That increase would happen as customers are moved to fixed delivery rates," Merali said. "The distribution and delivery charge for seasonal customers would be capped starting [in] 2021, and for about half our customers, it would result in a $65 increase."
The OEB will soon be starting a formal process to make a decision on the issue, Merali said.
"We've posted some information on our website," he said. "When more information becomes available, and the formal process commences, we encourage our customers to get involved."