Ontario to Remove Debt Retirement Charge and Launch Low-Income Electricity Support Program

March 26, 2015

Province Assisting Low-Income Ontarians with Electricity Costs

Ontario is helping make electricity more affordable for families by removing the Debt Retirement Charge for all residential consumers and introducing the Ontario Electricity Support Program for low-income families.

The proposed program, administered through the Ontario Energy Board, would come into effect on January 1, 2016 and would help low-income Ontarians by providing them with financial assistance.

Qualifying individuals could be eligible for a $20 to $50 monthly credit based on the size of the household and income.  For example, a family of four with an annual income of less than $28,000, would be eligible for a $38 monthly credit — a total of about $455 per year.

In addition, the Debt Retirement Charge for all residential consumers will be removed from the bill.

Helping low-income households with the cost of electricity is part of the government’s economic plan for Ontario. The four-part plan is building Ontario up by investing in people’s talents and skills, building new public infrastructure like roads and transit, creating a dynamic, supportive environment where business thrives and building a secure savings plan so everyone can afford to retire.

QUICK FACTS

• Removing the Debt Retirement Charge will save the typical residential electricity ratepayer $5.60 per month.
• Electricity represents a significantly greater share of monthly expenses for low-income households than for higher-income households. Low-income households spend as much as 10% or more of their income on electricity bills, while consumers in the highest income bracket only use 2% or less.
• The proposed Ontario Energy Support Program would be ratepayer funded with an estimated charge of less than one dollar a month for a typical residential customer in 2016.
• The implementation of the Ontario Electricity Support Program would follow the conclusion of the Ontario Clean Energy Benefit on December 31, 2015. The Ontario Clean Energy Benefit started in 2011 for a five-year term and provides approximately $1 billion in relief to eligible consumers annually.

BACKGROUND INFORMATION

• Ontario Electricity Support Program (OESP)

ADDITIONAL RESOURCES

• For more information, please visit the Ontario Energy Board`s website at www.ontarioenergyboard.ca/oesp.

CONTACTS

Jennifer Beaudry Minister’s Office 416-319-3573

Lynn Wong Communications Branch 416-326-4542

Ministry of Energy http://www.ontario.ca/energy