Chris' Corner: The REAL effect of May 1, 2011 TOU Price and Period Changes in Ontario

The REAL effect of May 1, 2011 TOU Price and Period Changes in Ontario

There was adequate warning about the implementation of Time of Use Price Periods and incenting Ontario Hydro Customers to use off-peak electricity.
We were told that if we were to consume hydro-electric power wisely, that we would realize savings. However, when October 1st , 2010 rolled around, and the meters installed in Alliston, Beeton, Tottenham, and the rest of New Tecumseth went "smart", and many consumers starting putting in practice off-peak consumption, an interesting thing happened.  Many of us did not see a drop in our Electricity Bills.

It seems to be general consensus that the reason we are not seeming to be realizing a noticeable benefit for our efforts is because Delivery, Regulatory Charges, Debt Retirement Charges, HST seem to dwarf the actual electricity charges.

The first major modification to Time of Use Price Periods took place May 1st, 2011.  The Utility company offered us 10 extra off peak hours a week.  During summer weekdays (May 1 to Oct 31), these hours (7 pm to 9 pm) were originally considered mid-peak hours.
During Winter weekdays (Nov 1 to Apr 30), these hours (again 7 pm to 9 pm) were previously Peak hours.  That is the good news...

Here is the rest of the story...

As of April 30, 2011
ON-PEAK rates were 9.9c/kWh
MID-PEAK rates were 8.1c/kWh
OFF-PEAK rates were 5.1c/kWh

Effective May 1, 2011
ON-PEAK rates are 10.7c/kWh
MID-PEAK rates are 8.9c/kWh
OFF-PEAK rates are 5.9c/kWh

This is an increase of .8C/kWh across the board, but look a little closer and you will see that it is:
an increase of 8.8% during ON-PEAK periods
an increase of 9.88% during MID-PEAK periods
and an increase of 15.69% during OFF-PEAK periods

In the average week (one without a statutory holiday), there are:
SUMMER
30 ON-PEAK hours a week
30 MID-PEAK hours a week
108 OFF-PEAK hours a week


WINTER
30 ON-PEAK hours a week (reduced from 40 ON-PEAK hours a week)
30 MID-PEAK hours a week
108 OFF-PEAK hours a week (increased from 98 OFF-PEAK hours a week)

This will not incent change nearly as much as if they had weighted the increases to create  a further difference between on-peak, mid-peak, and off-peak pricing.

The increase per hour is effectively 13.42%, even more if you were to factor in the statutory holidays.

If you are not happy with this, communicate your displeasure with your MPP and with your utility.  We can make a difference.

Chris Smith CSSBB
          Sales Representative

Interested in Buying or Selling Real Estate?

  ph: 1.866.936.3500

Re/Max
Chay Realty Inc.,
Brokerage

Comment balloon 2 commentsChris Smith • May 02 2011 09:29AM

Comments

Chris the information that you have provided is "shocking", but will you should get used to it.  The chances of the prices going down are the same as winning the lottery.

BTW - gas at $1.39 is cheap, they are warming us up to a $1.50 for Summer.

Posted by Al & Peggy Cunningham, Brokers, Our Family Wants To Help Your Family! (RE/MAX West Realty Inc., Brokerage) about 9 years ago

Al and Peggy, with the price of everything going up and up, it is going to be an interesting summer.

Posted by Chris Smith, South Simcoe, Caledon, King, Orangeville Real Esta (Re/Max Chay Realty Inc., Brokerage) about 9 years ago

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