Electric prices volted up last Thursday

News Release
Ontario Government

The Ontario government’s new interim electricity pricing structure, which will replace the current 4.3 cent per kilowatt hour (kWh) price cap, goes into effect tomorrow.
Residential, low-volume and other designated consumers will pay 4.7 cents per kilowatt hour (kWh) for the first 750 kilowatt hours (kWh) consumed per month, and 5.5 cents per kWh for consumption above that level. This structure will also apply to consumers in condominiums, apartments, co-ops and other multi-unit premises.
“The Tories’ electricity price freeze did not reflect the true cost of electricity, and so far has cost Ontarians close to $1 billion. That’s a lot of teachers, textbooks, doctors, nurses and medical procedures,” said Minister Duncan. “The 4.3 cent price cap effectively returned prices to 1993 levels, which was not realistic, and ultimately, Ontario taxpayers have been paying the price.”
The new prices, which better reflect the true cost of electricity, apply to electricity consumed on and after April 1, 2004. They will remain in place until the Ontario Energy Board implements a new structure, to take effect no later than May 1, 2005. If the revenue from the interim price plan exceeds the true cost of the plan, all eligible consumers will receive a credit for the difference after the OEB implements its pricing mechanism.
The government is taking steps to empower consumers to conserve electricity and save money, and will soon announce a bold and innovative plan for energy conservation in Ontario. Consumers interested in learning more about energy conservation can visit the Ministry of Energy’s website at www.energy.gov.on.ca, or call the ministry’s toll-free information line at 1-888-668-4636.
“Conservation is a top priority for this government,” said Minister Duncan. “The fact that Ontarians have been shielded from the true cost of electricity has encouraged consumption instead of encouraging conservation.
The pricing structure we’ve put in place gives people a real incentive to reduce their electricity use and keep their bills lower.”