Cottage electricity bills to climb
By Chad Ingram
If
you own a cottage in Haliburton County, or anywhere in Ontario, for
that matter, it’s possible that your electricity bill for that seasonal
residence is about to go up, and in some cases, go up substantially.
you own a cottage in Haliburton County, or anywhere in Ontario, for
that matter, it’s possible that your electricity bill for that seasonal
residence is about to go up, and in some cases, go up substantially.
The
Ontario Energy Board, which is the province’s energy regulator, is
pushing for the elimination of the seasonal rate billing class, which
has traditionally applied to all cottage properties in the province.
Depending on their location, cottages would then be billed under either
medium-density (R1) or low-density (R2) classes, the latter being more
expensive since it entails higher delivery costs.
Ontario Energy Board, which is the province’s energy regulator, is
pushing for the elimination of the seasonal rate billing class, which
has traditionally applied to all cottage properties in the province.
Depending on their location, cottages would then be billed under either
medium-density (R1) or low-density (R2) classes, the latter being more
expensive since it entails higher delivery costs.
Hydro One is asking that the OEB consider alternative options for seasonal residents.
“Since
2015, following direction from the Ontario Energy Board to develop a
plan to eliminate the seasonal rate class, Hydro One has advocated on
behalf of its customers on how the elimination of this rate class would
have a negative effect on more than half of our seasonal customers,”
communications staff for Hydro One wrote in an email to the Times. “By
eliminating the seasonal rate class, approximately 54 per cent of our
customers could see a significant increase to their bills.”
“Since
2015, following direction from the Ontario Energy Board to develop a
plan to eliminate the seasonal rate class, Hydro One has advocated on
behalf of its customers on how the elimination of this rate class would
have a negative effect on more than half of our seasonal customers,”
communications staff for Hydro One wrote in an email to the Times. “By
eliminating the seasonal rate class, approximately 54 per cent of our
customers could see a significant increase to their bills.”
According
to the Federation of Ontario Cottagers’ Associations, Hydro One has
confirmed to the association that 84,000 seasonal customers could see
bill increases of 175 per cent.
to the Federation of Ontario Cottagers’ Associations, Hydro One has
confirmed to the association that 84,000 seasonal customers could see
bill increases of 175 per cent.
“Hydro
One will be submitting an updated report to the OEB in mid-July that
identifies another option for seasonal customers,” reads the email from
Hydro One. “This updated report will reflect the 2018-2022 distribution
rate, which was also directed by the OEB. It is important to note that
Hydro One cannot proceed with any changes, including the elimination of
the seasonal class, without an OEB order. Once the report has been
submitted to the OEB it will also be made available to the public on
their website.”
One will be submitting an updated report to the OEB in mid-July that
identifies another option for seasonal customers,” reads the email from
Hydro One. “This updated report will reflect the 2018-2022 distribution
rate, which was also directed by the OEB. It is important to note that
Hydro One cannot proceed with any changes, including the elimination of
the seasonal class, without an OEB order. Once the report has been
submitted to the OEB it will also be made available to the public on
their website.”
According
to FOCA, the move to all-fixed rates, currently underway, adequately
addresses concerns about low usage customers not carrying their share of
costs, and the elimination of the seasonal class would provide a small
benefit to some cottage owners while creating substantially larger bills
for many.
to FOCA, the move to all-fixed rates, currently underway, adequately
addresses concerns about low usage customers not carrying their share of
costs, and the elimination of the seasonal class would provide a small
benefit to some cottage owners while creating substantially larger bills
for many.
“The
elimination of the seasonal class will result in over 70,000 customers
moving to the R1 class and close to 84,000 customers moving to the R2
class, a large majority of whom are low-consumption customers,” FOCA’s
website reads. “Hydro One’s detailed analysis demonstrates that the move
to all-fixed rate alone (already underway) addresses the key concern of
some customers that low-consumption customers are not paying their fair
share of costs. The analysis also demonstrates that from a customer’s
perspective, very little incremental benefit is gained by the
elimination of the seasonal class. The elimination of the seasonal class
combined with the move to all-fixed distribution residential rates
results in only a small benefit to the 70,000 seasonal customers moving
to the R1 class, and very large negative impacts on the 84,000 seasonal
customers that would move to the R2 class.”
elimination of the seasonal class will result in over 70,000 customers
moving to the R1 class and close to 84,000 customers moving to the R2
class, a large majority of whom are low-consumption customers,” FOCA’s
website reads. “Hydro One’s detailed analysis demonstrates that the move
to all-fixed rate alone (already underway) addresses the key concern of
some customers that low-consumption customers are not paying their fair
share of costs. The analysis also demonstrates that from a customer’s
perspective, very little incremental benefit is gained by the
elimination of the seasonal class. The elimination of the seasonal class
combined with the move to all-fixed distribution residential rates
results in only a small benefit to the 70,000 seasonal customers moving
to the R1 class, and very large negative impacts on the 84,000 seasonal
customers that would move to the R2 class.”
According
to FOCA, while customers moving to the all-fixed R1 class could see
reduction of $7 to $9 a month off their bills, customers moving to the
all-fixed R2 class could see an increase of some $65 per month on their
electricity bills.
Hydro One is encouraging seasonal customers to get involved.
“We
are committed to engaging with all of our customers on the things that
are important to them such as safety, reliability and costs,” the email
from Hydro One reads. “Hydro One’s proposed option takes into
consideration all of its seasonal customers across the province along
with the feedback it received during the consultation with seasonal
customers in 2015. Hydro One expects that as part of the OEB process,
seasonal customers will have the opportunity to participate in the
review of the updated report. We encourage customers to participate in
any opportunities to provide the OEB with feedback on this initiative.”
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