Implementation of COVID-19 Recovery Rate for Regulated Price Plan and Time-of-Use Electricity Customers

On March 17, 2020, the Government of Ontario made an order declaring an emergency (the “Emergency Declaration”) under section 7.0.1 (1) the Emergency Management and Civil Protection Act to respond to the COVID-19 outbreak.

As a result of the emergency, the government instituted physical distancing policies, including school and non-essential business closures and work from home policies. The government recognized that these policies would result in increased electricity use during the day for residential customers, and that small businesses and farms, whether they are open or closed, continued to have electricity costs and needed help.

During the week of March 16, there were numerous customer requests to provide electricity relief from TOU prices while social distancing policies were in effect. There were numerous media articles, sustained social media posts, direct messages to government, and more than 10 online petitions that expressed a public desire to switch to off-peak TOU rates during COVID-19 social distancing.

On March 24, 2020, the government responded by suspending TOU rates, holding electricity prices to the lowest rate, known as the off-peak rate, of 10.1 cents per kilowatt hour, available 24 hours a day, seven days a week for an intended 45-day period. This off-peak price period was enabled by Emergency Order (Ontario Regulation 80/20) made under subsection 7.0.2(4) of the Emergency Management and Civil Protection Act, 1990 (EMCPA).

On May 6, 2020 the government announced its intention to extend the off-peak TOU rate to the end of day on May 31, 2020 to continue to provide support to residential, farm and small business TOU customers.

As Ontarians and their families continued to spend more time at home, on May 30, 2020, the government announced it would continue the time-of-use suspension by introducing the flat COVID-19 Recovery Rate for TOU customers beginning June 1, 2020. The COVID-19 Recovery Rate will provide Ontarians greater flexibility to use electricity during all periods of the day as people continue to adjust their day-to-day schedules and the economy recovers from the COVID-19 outbreak.

This flat rate of 12.8 ¢/kWh is based on the forecast average RPP supply cost for RPP consumers, calculated by the Ontario Energy Board (OEB) as of November 1, 2019

The government worked with the Ontario Energy Board and Local Distribution Companies (LDCs) to implement the COVID-19 Recovery Rate quickly to provide immediate electricity stability and predictability to families and businesses impacted by COVID-19.

The monthly summer bills of most residential and small business customers charged at the COVID-19 Recovery Rate would be expected to be within 2 percent of the bill they would have received if they were charged TOU rates. While the benefit to customers may vary, the COVID-19 Recovery Rate will provide certainty to customers regarding how they are charged for all hours of the day during a time that they are being asked to stay home.