Opinion: The Power Bill Shell Game: Ontario Swaps Transparent Rebates for Complex Pricing
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The province is slashing a direct household rebate while lowering seasonal rates, leaving ratepayers to guess if they are actually saving money.
Ontario is rearranging the math on residential power bills, replacing a straightforward rebate with a complex web of seasonal pricing that obscures the actual cost to consumers, as CBC Toronto first reported.
**The Rebate Cut** Starting Nov. 1, the Ford government is reducing the Ontario Electricity Rebate (OER), a program introduced in 2019. According to the Ontario Energy Board (OEB), the OER will drop from covering 23.5% of electricity bill costs for farms, households, and small businesses to just 15.7%.
For the average residential customer using 700 kilowatts per hour, the impact is a visible reduction in monthly savings. CBC Toronto reports that the OER will now decrease bills by approximately $23 per month this winter, down from a reduction of about $36 per month for the same usage last year.
**The Pricing Pivot** To offset the rebate cut, the OEB is lowering winter time-of-use pricing effective Nov. 1 through April 30, 2027. While the rebate is shrinking, the cost per kilowatt-hour is dipping across three tiers:
* **Off-peak** (Weekdays 7 p.m. to 7 a.m.; all day weekends/holidays): 9.1 cents (down from 9.8 cents last year). * **Mid-peak** (Weekdays 11 a.m. to 5 p.m.): 14.6 cents (down from 15.7 cents last year). * **On-peak** (Weekdays 7 a.m. to 11 a.m. and 5 p.m. to 7 p.m.): 18.9 cents (down from 20.3 cents last year).
**The Official Line vs. The Reality** The OEB claims that because prices under the Regulated Price Plan are decreasing year-over-year, the rebate reduction is possible while keeping the overall rate of bill increases consistent with previous years. Noah Mawji, a spokesperson for Minister of Energy and Mines Stephen Lecce, told CBC Toronto that the government is keeping costs down through competitive procurements and noted that the average residential customer saves nearly $275 annually via the OER. Mawji added that targeted relief will continue for low-income households.
However, the shift from a flat rebate to tiered pricing makes it harder for the average person to track their spending. Lewis Krashinsky, a Harvard University postdoctoral fellow, told CBC Toronto that the rebate decrease will likely be felt by the public, noting that affordability is the top priority for Ontarians.
**Looking Ahead** While the government focuses on current pricing, critics warn of future spikes. Keith Brooks, programs director for Environmental Defence Canada, told CBC Toronto that the province's focus on small modular reactors and nuclear power plants will cost taxpayers dearly, arguing that wind and solar backed by batteries are cheaper alternatives.
Adding to the volatility, the Independent Electricity System Operator has signed a contract to import 600 megawatts of electricity from New York state this winter to cover unspecified "facility maintenance," a move that follows Premier Doug Ford's previous threats to cut off U.S. electricity exports.