The Ontario Energy Board (OEB) has now set the costs to be
recovered from Ontario electricity ratepayers for the Ontario
Electricity Support Program. In a previous post, we discussed the OESP and the OEB
website (www.OntarioElectricitySupport.ca ) where
low-income electricity consumers can sign up for the OESP. Under
the OESP, eligible low-income households can receive monthly
credits ranging from $30 to $75 on their electricity bills.
In a Decision released yesterday, the OEB
determined that the total OESP credits expected to be issued during
2016 will be around $145 million. There are also administration and
implementation costs of around $13 million. To recover these costs,
the OEB has approved a new rate to be charged to electricity
distribution customers in Ontario as part of the Regulatory Charges
line on their bills. This rate will be charged on a volumetric
basis, staring on January 1, 2016. According to the OEB, an average
consumer will pay around $.93 per month ($11 per year) for this new
The Independent Electricity System Operator (IESO) will
administer the OESP funds. Distributors will be invoiced by the
IESO, using the same OESP rate as the Distributors will be billing
to their customers. Effectively, this passes on the new revenues
that will be collected from customers. Distributors will recover
any OESP credits issued to their customers through a settlement
process with the IESO. Unit sub-meter providers will settle
directly with the IESO for OESP credits on their customer
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Canada is a constitutional monarchy, a parliamentary democracy and a federation comprised of ten provinces and three territories. Canada's judiciary is independent of the legislative and executive branches of Government.
The Government of Alberta recently announced a number of policy changes that will impact the Alberta Electricity Market, composed of its generators, transmitters, distributors, retailers, electricity consumers and wholesale electricity market.
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