On October 22, 2019 the Ontario Energy Board (OEB) announced new electricity prices for households and small businesses, effective November 1, 2019.
With changes in legislation, prices of the time-of-use line are increasing so that they once again reflect the forecasted cost of power, a charge that Lakefront Utilities Inc. has no control over. Changes to the look of hydro bills will also take effect, with a separate line showing the new Ontario Electricity Rebate, which replaces the previous government’s Fair Hydro Plan. The new Ontario Electricity Rebate is 31.8 percent and replaces the previous 8 percent provincial rebate and rate relief provided through the Fair Hydro Plan.
The OEB has stated that the total bill for a residential customer who uses 700 kWh per month will increase by about $1.99 or 1.8 percent which is in line with the rate of inflation. Although the OEB has also stated that total bill impact for individual customers across the province may vary depending on the customer’s electricity usage and utility that serves them, Lakefront has noted that for its customers who use 700 kWh per month, the increase would be $4.11 or 4.09 percent.
The lower distribution and regulatory charges paid by Lakefront Utilities customers – which ultimately lead to a lower average monthly total bill compared to the typical Ontario customer – is the reason that Lakefront’s customers may experience a bill impact greater than the rate of inflation.
Specifically, as the electricity line of a Lakefront Utilities customer represents a higher portion of the monthly bill compared to the weighted Ontario average, the increase resulting from the OEB’s November 1, 2019 price change is greater for a LUI customer than for the typical Ontario residential customer.
The prices which customers pay for electricity are the result of decisions that are subject to regulatory oversight. The greatest impact on the prices paid by customers arises from decisions made by the provincial government, which are not subject to regulatory oversight.
“Lakefront understands that the high cost of energy in Ontario is affecting our customers and their families. LUI’s portion of a typical residential bill (delivery charge only) is approximately 22 percent of the total bill.
We believe the community must be allowed to take a more central role when implementing provincial policy objectives. Lakefront is disappointed with the change in rates that will result in a significant increase to Lakefront’s customers,” commented Dereck Paul, President of Lakefront Utilities Inc.
“We are proud of the various achievements on LUI’s 2018 Provincial Scorecard, including having the 8th lowest residential rates and 7th highest ranking in reliability among the 62 utilities in Ontario.”
To learn more about electricity rates, visit www.lakefrontutilities.com
Author: Pete Fisher
Has been a photojournalist for over 30-years and have been honoured to win numerous awards for photography and writing over the years. Best selling author for the book Highway of Heroes - True Patriot Love
