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Changes to Electricity Bills for Commercial and Industrial Customers effective January 1, 2021

Global Adjustment Deferral Recovery

In 2020, the Provincial government deferred a portion of the Global Adjustment (GA) between April and June by limiting the Class B GA rate to $115/MWh for non-Regulated Price Plan (RPP) customers and providing proportionate reductions for Class A customers. These deferred costs will be recovered from Class A and non-RPP Class B customers over a 12-month period beginning January 2021.

Electricity Pricing Changes

The Provincial government has also made regulatory amendments whereby a portion of non-hydro renewable energy contract costs will be shifted from electricity customers to the tax base. These changes were announced as part of the 2020 Ontario Budget. This reduction in electricity pricing will more than offset the impact of recovering the deferred GA.

The impact of these two initiatives will be reflected in the GA rate on your electricity bill. As a result of these two initiatives in 2021, Class A and non-RPP Class B customers could see savings of about 11 per cent and 12 per cent, respectively (as compared to their bill had these initiatives not been implemented). After 2021, savings are expected to increase as the recovery of deferred GA costs will be complete and the funding of a portion of non-hydro renewable energy contract costs is expected to continue. Actual savings will depend on customer location and consumption.