Pending short-term electricity rate relief for Ontario’s residential and small business customers is somewhat out of sync with expected power consumption patterns due to recently imposed COVID-19-related public health controls. As announced today, time-of-use and tiered rates for electricity consumers on the regulated price plan (RPP) will switch to the off-peak rate of 8.2 cents per kilowatt-hour (kWh) for 21 days beginning at midnight on January 18. That’s a day after the provincial government has suggested it could allow students to return to classrooms.
“We know that spending more time at home means using more electricity during the day when prices are higher,” observes Todd Smith, Minister of Energy. “That’s why we are moving to off-peak electricity rates 24 hours per day, seven days a week. The off-peak rate will provide immediate savings for families, small businesses and farms as all Ontarians work together to slow the spread of the Omicron variant.”
In the interim, customers who have opted for time-of-use rates will continue to pay on-peak rates of 17 cents/kWh from 7 to 11 a.m. and 5 to 7 p.m., and mid-peak rates of 11.3 cents/kWh from 11 a.m. to 5 p.m.. Or under the tiered rate option, residential customers will pay 9.8 cents/kWh for their first 1,000 kWh of consumption and 11.5 cents/kWh for additional usage.
Timing of the relief measure could prove beneficial for a range of small businesses that may again be able to welcome clientele to their premises as of January 26 since they would enjoy the off-peak rate for the first 12 days of resumed operations. Alternatively, if restrictions on in-school attendance and public gatherings stretch beyond the initial two- and three-week targets, residential electricity customers — particularly those housing online learners — will likely realize the greater benefit.
However, Ontario businesses subject to prohibitions on indoor occupancy or restrictions on capacity will be eligible for rebates on utility costs and property tax for the affected period. In addition, the provincial government has announced a $10,000 grant for designated categories of businesses suffering pandemic-related operational interruptions including: restaurants and bars; fitness and recreational facilities; cinemas, performing arts and cultural venues; events spaces and conference centres; driver’s training instructors; and before- and after-school programs. Qualifying businesses are promised funds in February.
“Small businesses, job creators and the entrepreneurial spirit are the backbone of Ontario’s economy. Unfortunately, these businesses have been some of the most impacted by COVID-19, and many continue to struggle,” acknowledges Vic Fedeli, Minister of Economic Development, Job Creation and Trade.
