Why Your Hydro May Be Going Up Again This Winter
Posted October 15, 2008 12:00 pm.
This article is more than 5 years old.
Winter’s almost here, and so are higher energy costs.
The Ontario Energy Board will raise the price of basic electricity by more than 10 per cent as part of the twice yearly adjustment that corresponds with the change in seasons.
If you use 1,000 kilowatt-hours or less per month, it will cost you 5.6 cents per kWh. Above that, the price will be 6.5 cents.
This means monthly energy costs will go up not only because of increased demand in cold weather. They will be $6 more than even last winter, translating into a 12 per cent jump. For anything above the 1,000-kilowatt-per-hour limit, the increase will be 10.2 per cent.
The provincial regulator blames new, pricey renewable and natural gas projects, and further expected costs from nuclear and large hydro plants. Other factors are conservation initiatives and McGuinty’s plan to cut CO2 emissions from coal-fired plants by 2011.
But, the board notes, “These upward price pressures are partially offset by a forecast of lower electricity market prices primarily due to a decline in expected natural gas prices.”
Natural gas accounts for about 10 per cent of the province’s electricity. More than half comes from nuclear plants, with the rest supplied by coal, hydroelectric, wind and alternative energy sources.
The raise does not apply to consumers buying their power from third-party retailers. And for the few Ontario households that use smart meters and pay time-of-use rates, the peak price per kilowatt-hour drops to 8.8 cents from 9.3 cents. The mid-peak price will be 7.2 cents down from 7.3 cents, while the off-peak price rises to 4.0 cents from 2.7 cents.
