Savings for Commercial and Industrial Customers Starting January 1, 2021

Starting January 1, 2021, a portion of renewable energy contract costs will be funded by the Ontario government instead of electricity customers. This will lower electricity bills for large and mid-sized commercial and industrial customers who do not participate in the Regulated Price Plan (RPP) or receive the Ontario Electricity Rebate (OER) by reducing Global Adjustment (GA) costs.

Class A customers could see savings of about 15 per cent on their bills, while non-RPP Class B customers could see savings of about 16 per cent on their bills in relation to the GA costs before the recovery of the deferred GA amount[i]. Actual savings will vary depending on customers’ location and electricity consumption.
In 2020, the province of Ontario deferred a portion of the Global Adjustment (GA) between April and June 2020 by limiting the Class B GA rate to $115/MWh for non-RPP customers and providing proportionate reductions to Class A customers. The Ontario Energy Board (OEB) announced that the deferred GA costs will be recovered over a 12-month period beginning in January 2021[ii].
In 2021, electricity distributors are required to combine the lower GA costs with the GA deferral recovery amounts on the GA Costs line of Class A and non-RPP Class B customers bills. Customers could see a net savings of about 11% and 12%, respectively, starting January 2021.
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