How will household electricity rebate reduction, temporary winter pricing change impact Ontarians?

Rebate will decrease bills by about $23 per month for average residential customer this winter

Ontario is reducing one of its key ratepayer rebates effective Nov. 1, though winter electricity pricing will also be lowered, the Ontario Energy Board (OEB) says.

The Ford government’s Ontario Electricity Rebate (OER) will go from covering 23.5 per cent of electricity bill costs for small businesses, households and farms, to 15.7 per cent, the OEB said in a news release Friday.

The OER will decrease bills by about $23 for an average residential customer who uses 700 kilowatt-hours of electricity per month. Last year, the OER decreased bills for households using 700 kilowatt-hours of electricity per month by around $36 per month.

"Electricity prices under the OEB’s [Regulated Price Plan] are decreasing year-over-year, which allows for a reduction in the OER," the OEB said. "The overall rate of increase for customer bills will remain consistent with previous years."

The OEB is part of the provincial public sector and operates as an independent Crown agency and regulatory body of the Ontario government.

Though the rebate is facing a cut, winter time-of-use pricing — which will take effect on Nov. 1 and last until April 30, 2027 — is also going down.

In a statement Friday, a spokesperson for the Minister of Energy and Mines, Stephen Lecce, told CBC Toronto the government will continue targeted relief efforts to support low-income households with electricity bills. (Evan Mitsui/CBC)

Off-peak hours, which are on weekdays between 7 p.m. and 7 a.m. as well as all day on weekends and holidays, will see rates of 9.1 cents per kilowatt-hour. The price will be 14.6 cents per kilowatt-hour between 11 a.m. and 5 p.m. on weekdays, also known as mid-peak.

On-peak periods, which run between 7 a.m. and 11 a.m. and 5 p.m. and 7 p.m. on weekdays, will cost 18.9 cents per kilowatt-hour.

Last year, off-peak prices were 9.8 cents per kilowatt-hour, mid-peak rates were 15.7 cents per kilowatt-hour and 20.3 cents per kilowatt-hour for on-peak times.

In a statement Friday, a spokesperson for Minister of Energy and Mines Stephen Lecce told CBC Toronto the government will continue targeted relief efforts to support low-income households with electricity bills.

"Our government continues to keep electricity costs down for Ontario families," Noah Mawji said. "As we deliver the largest energy buildout in a generation, we are keeping costs down through competitive procurements."

The average residential customer saves nearly $275 per year through the OER, Mawji said. The province introduced the OER in 2019.

‘The worst is yet to come’: environmental activist

Keith Brooks, programs director for advocacy group Environmental Defence Canada, argues the government's plan to build nuclear power plants and small modular reactors will cost taxpayers dearly.

"Instead of doing that, we really should be getting the cheapest sources of new electricity supply, which are wind power, solar power backed up by batteries," he said. "That's where the rest of the world is going."

Ontario set to import New York electricity this winter after Ford threatened to cut the U.S. off

In June, the provincial government directed the Independent Electricity System Operator to secure affordable, clean energy for ratepayers, according to a news release.

But Brooks believes electricity prices are going to increase as more nuclear energy plants are built.

"The worst is yet to come," he said. "Whether it's the taxpayer or the electricity ratepayer who pays it doesn't really matter because that's the same people... the people of Ontario."

Gas-powered plants have demonstrated their unreliability and vulnerability, Brooks said, pointing to last winter when they struggled to meet demand during a storm and batteries had to come "to the rescue."

"It's absurd," he added. "The system is reaching a breaking point."

Number 1 priority for Ontarians is affordability: expert

Harvard University postdoctoral fellow Lewis Krashinsky, who studies U.S.-Canada politics, told CBC Toronto Friday the rebate decrease is going to look bad.

"People are going to feel that," he said. "What Doug Ford has going for him is there isn't going to be an election anytime soon."

The number one priority for Ontarians is affordability, Krashinsky added.

"If the perception flips from Doug Ford being all about the economy and affordability to him making a decision that is making it less affordable for Ontarians, you could start to see people sort of start to sour on him," he said. "Time will tell."

Critics call on Ford government to address rising hydro rates

Ontario expands energy efficiency programs to eligible appliances

Last year, the Ford government rolled out a $10.9 billion budget for expanded energy efficiency programs, which it estimates would bring in $23.1 billion of benefits over 24 years, saving the system and ratepayers an estimated $12.2 billion, according to a news release from Jan. 7, 2025.

In May 2025, the province permanently cut gasoline and fuel tax rates, which, on average, saves households approximately $115 per year, according to a news release from May 13, 2025.

The provincial government also launched the Ontario Electricity Support Program, which seeks to provide an ongoing monthly credit for qualified customers to help them cover their electricity bills.

Gabriela Silva Ponte has been with CBC Toronto since January 2025. Currently, she works as a web writer, but has previously taken on a variety of reporting roles in ethnic media newsrooms and at Toronto Metropolitan University. Gabriela graduated from TMU with a Bachelor of Journalism. You can reach her at gabriela.silva.ponte@cbc.ca.

With files from Lorenda Reddekopp