COVID 19 Time-of-Use Rates

 

Time-of-Use Rates FAQ 

PUC wants to thank the Government of Ontario for continually finding ways to provide different forms of relief to our customers during these unprecedented times. PUC understands that there are still uncertain times ahead. We are urging customers who may be struggling financially to call our Customer Experience Team and speak with us regarding flexible options in place such as payment plans, extended credit terms and more.  


FAQ

Q1. What is being done to support households and businesses with increased electricity usage during this COVID-19 outbreak?

Starting June 1, 2020, the government of Ontario has introduced a COVID-19 Recovery Rate of 12.8 cents/kWh for TOU Regulated Plan (RPP) customers to provide stability and predictability for families, small businesses and farms. This rate, subject to approvals, in intended to be in effect until October 31, 2020. 

Q2. What is the June 1 COVID-19 Recovery Rate based on?

This rate is based on the forecasted average RPP supply cost, calculated by the Ontario Energy Board as of November 1, 2019. 

Q3. Would the new COVID-19 Recovery Rate be automatically applied to customer bills? 

Yes, the fixed ‘COVID-19 Recovery Rate’ of 12.8¢/kWh will automatically be applied to all customers who pay time-of-use (TOU) rates starting June 1, 2020.  It is intended that this rate will continue to be in effect until October 31, 2020.  

Q4. Will the COVID-19 Recovery Rate have an impact on customer bills?

Historical consumption patterns suggest that the monthly summer bills of most residential and small business customers charged at the COVID-19 Recovery Rate would on average be expected to be within +/- 2 percent of the bill they would have received if they were charged the TOU prices by the Ontario Energy Board on November 1, 2019. 

The bill impact for individual customers as a result of the adoption of the COVID-19 Recovery Rate will depend on how much electricity they use and the extent to which their consumption pattern is different from what it has been in the past.  

Illustrative Bill Comparison Examples:

  • Compared to regular time-of-use rates, the average consumer (700kWh monthly consumption, 64% off-peak, 18% mid-peak, 18% off-peak) would not see a bill change when charged the COVID-19 Recovery Rate of 12.8 cents/kWh.
    • Compared to regular time-of-use rates, the average consumer (700kWh monthly consumption, 64% off-peak, 18% mid-peak, 18% off-peak) would not see a bill change when charged the COVID-19 Recovery Rate of 12.8 cents/kWh.
    • Compared to regular time-of-use rates, a consumer who uses 700kWh a month with a consumption pattern of 55% off-peak, 20% mid-peak, 25% on-peak would see a bill decrease of approximately $4.99 when charged the COVID-19 Recovery Rate of 12.8 cents/kWh.
  • Compared to the current off-peak price of 10.1 cents/kWh, the average customer (700kWh monthly consumption) would see a bill increase of approximately $16.13 when they are moved to the COVID-19 Recovery Rate of 12.8 cents/kWh.

Q5. How will this change affect RPP customers who don’t pay TOU rates?

Tiered customers will not be affected by the new fixed price.  The initial rate reduction was targeted to TOU ratepayers, as those were the customers that would see the greatest increase in cost due to being home during the day.  There are approximately 5 million residential consumers, farms and some small businesses who are on TOU electricity prices under the RPP.  

The remainder of RPP customers either pay tiered prices or have opted out of the RPP to sign a contract with an electricity retailer or to pay market-based pricing.  At the present time, RPP customers who pay tiered rates make up less than 5% of RPP consumers. 

Q6. What is happening with the usage threshold for tiered rates? The summer threshold that normally goes into effect May 1 is much lower than the winter (600 kWh vs. 1000 kwh per month.)  With most people at home for all of May, the higher threshold will kick in much earlier for a lot of customers.

The Ontario Energy Board has extended the winter tier prices and the winter thresholds also remain in place until further notice.  By keeping the winter threshold in place, residential customers will have an additional 400kWh/month available at the lower Tier 1 price.

 


If you have other questions, please reach out to our Customer Experience team at 705-759-6522 or customer.care@ssmpuc.com

 

 

 

 

 

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