Ontario Electricity Rebate (OER) Reduced Effective November 1, 2021
What is the Ontario Electricity Rebate (OER)?
The Ontario Electricity Rebate (OER) is for most households, farms, long-term care homes and small businesses. Eligible consumers automatically receive the rebate. The OER appears on your NT Power bill as a single line item displayed as Ontario Electricity Rebate. The on-bill rebate reduces the pre-HST costs on eligible customers’ bills. The Ontario government introduced the OER to make the true cost of electricity on the electricity bill more transparent. The built-in reduction in electricity rates and the previous 8% Provincial Rebate on the bill was replaced with the OER. If you receive the Ontario Electricity Support Program (OESP) rebate and/or the First Nations Credit, you will see an additional line item on your bill called "Total Provincial Support" that summarizes the total amount of your rebate amounts.
Consumers that are currently receiving the OER under the grandfathering regulatory provisions will continue to receive the rebate until October 31, 2022. When the OER was introduced, a grandfathering period was also put in place for consumers that were previously receiving the 8% rebate as of October 22, 2019, if they met prescribed requirements to provide notice to their electricity vendor before February 1, 2021. The grandfathering period was scheduled to end on April 30, 2021.
How is the OER Calculated?
The OER is calculated on the base amount of the electricity bill, prior to applying Harmonized Sales Tax (HST). The base amount includes the electricity charge, delivery charge, and regulatory charge. It will exclude additional charges that may appear on bills such as late payment charges, or the provision of other services.
For a customer who receive an Ontario Electricity Support Program (OESP) credit, the OER is calculated on the bill total, before the OESP is applied.
No Application Required for Most Customers
Most eligible consumers will receive the OER automatically, including low-volume consumers such as homes and small businesses with a demand of less than 50 kilowatts. However, there are notice requirements in place for larger, multi-unit complexes and certain consumers who were previously receiving the 8% Provincial Rebate but are not eligible for the new OER.
Accounts that need to complete a new self-declaration form include a multi-unit complex that meets all the following conditions:
- Exceeds 50kW electricity demand AND exceeds 250,000 kWh of electricity per year.
- Contains at least two qualifying units.
- At least 50% of the units within the complex are qualifying units.
- Has completed a self-declaration form.
What effect will the OER have on my bill?
According to the Ontario Energy Board, who sets the prices for electricity, an average residential customer who uses 700 kWh per month, will see their bill rise in-line with the rate of inflation, but the total impact will vary depending on customers individual usage and local LDC rates.
Who Should Apply?
If you meet the eligibility criteria listed above, you should submit an OER Notice Form.
However, if your electricity demand is 50 kilowatts or less or if your annual consumption is less than 250,000 kilowatt hours, you don’t have to complete the OER Notice Form. You’ll be automatically enrolled in the OER.
To apply for the OER, complete the OER Notice Form (PDF, 75 KB) and submit it according to the instructions on the form.
Where can I see more details on the new electricity rates and the OER?
Ontario Rebate for Electricity Consumers Act, 2016, S.O. 2016, c.19 https://www.ontario.ca/laws/statute/16o19
The Ontario Government website has additional information about the OER.
The Ontario Energy Board (OEB) updated its website to reflect the changes to electricity bills. Please see their Understanding Your Electricity Bill page for more information.