Ontario households are seeing a 29 percent increase in electricity rates as of Saturday, a change driven by higher nuclear generation costs and rising expenses for conservation programs. The Ontario Energy Board (OEB) confirmed the adjustment last week, while also announcing that the provincial rebate on hydro bills will rise to help offset the increase.
Residents can choose from three regulated pricing plans: time-of-use, tiered, or ultra-low overnight. All three have now gone up.
Under the time-of-use plan, off-peak rates have climbed from 7.6 to 9.8 cents per kilowatt hour. Mid-peak hours now cost 15.7 cents, up from 12.2, while on-peak periods have risen to 20.3 cents from 15.8.
Those on the tiered plan will now pay 12 cents per kilowatt hour for the first 1,000 kilowatt hours, compared to the previous 9.3 cents. Consumption beyond that limit will cost 14.2 cents, up from 11 cents.
For the ultra-low overnight plan, rates have increased to 3.8 cents per kilowatt hour overnight, up from 2.8. Mid-peak usage now costs 15.7 cents, up from 12.2, while on-peak periods have surged to 39.1 cents from 28.4.
Customers who wish to remain on their current plan do not need to take any action. Those who prefer to switch must notify their local utility company by submitting a form.
To cushion the impact of higher electricity prices, the Ontario Electricity Rebate will increase from 13.1 to 23.5 percent. The rebate appears as a pre-tax credit on electricity bills for households, small businesses, and farms.
According to the OEB, the updated rebate will remove about $36 from the monthly bill of a typical home using 700 kilowatt hours of electricity.
While the rebate offers short-term relief, critics say it masks deeper problems in the province’s energy system. The Ontario Clean Air Alliance criticized Premier Doug Ford’s government for what it calls a “band-aid solution,” arguing that subsidies hide the true costs of relying on nuclear power.
“Hiding these cost increases by increasing the Ontario Electricity Rebate won’t make them go away,” the group said in a statement. “This is a temporary fix that ignores the root cause, dependence on expensive nuclear power.”
The group also warned that taxpayers are ultimately footing the bill. Maintaining the subsidy, it said, could cost Ontario more than $6 billion annually to keep rates artificially low.
With both electricity costs and rebates increasing, energy experts say the province’s long-term approach to managing its power system is once again under scrutiny.
