Type of Intervention: Regulation
Sectors Involved: Finance/Economy
Level of Jurisdiction: Ontario
Lead People/Agency: Greg Rickford, Minister of Energy, Northern Development and Mines
Overview: The Ontario government is extending the suspension of time-of-use electricity pricing, which delivers emergency rate relief to numerous residential, farm, and small business electricity consumers. The government is introducing a fixed electricity price, called the COVID-19 Recovery Rate, at 12.8 cents per kWh. This rate will be automatically applied to all time-of-use consumers 24 hours a day, 7 days a week from June 1 to October 31, 2020. The intention is to provide consumers with greater stability and predictability of their electricity bills.
Full details here: https://news.ontario.ca/mndmf/en/2020/05/ontario-provides-consumers-with-greater-stability-and-predictability-with-their-electricity-bills.html
Type of Justification: Providing support
Evidence/Justification: Introducing a new fixed rate and extending the suspension of time of use pricing intends to provide consumers with flexibility to use electricity when they need it. The government justifies this policy as a means to support Ontarians financially by eliminating on-peak and mid-peak prices for electricity use.