Ontario’s Fair Hydro Plan

Bringing electricity prices down

Starting this summer, the Fair Hydro Plan will result in 25 per cent lower electricity bills* for Ontario’s residential customers and as many as half a million small businesses and farms, as compared to what they would have paid without the implementation of the Fair Hydro Plan.

Alectra Utilities customers and Ontario’s Fair Hydro Plan

The 25 per cent reduction was implemented for Alectra Utilities customers in three stages. Households and small businesses started to see the full benefit of the Fair Hydro Plan on July 1, 2017.

1 January 1, 2017  > An eight per cent rebate equal to the provincial portion of the Harmonized Sales Tax on the bills of residential, farm, small business and other eligible customers was introduced by the Government of Ontario. 8%
2 May 1, 2017  > The Ontario Energy Board reduced Time-of-Use electricity rates across the province and eliminated the Ontario Electricity Support Program charge that was a component of Regulatory Charges. 9%
3 July 1, 2017  > The Ontario Energy Board further reduced Time-of-Use electricity rates across the province and lowered the Rural and Remote Rate Protection charge that is a component of Regulatory Charges. 8%
Average Cost Savings: 25%


Quick facts about the Fair Hydro Plan

  • Ontario’s Fair Hydro Plan will improve energy sector efficiency and modernize the province’s electricity market, building on the collaboration of Independent Electricity System Operator and Ontario Energy Board.
  • In April 2017, the Industrial Conservation Initiative was expanded to include electricity consumers in the manufacturing and greenhouse sectors with an average monthly peak demand of greater than 500 kW and less than 1 MW.
  • As part of the Fair Hydro Plan, rate increases will be held to the rate of inflation for four years.
  • The province has expanded the Ontario Electricity Support Program, providing 50 per cent more support in the form of monthly credits for people with low incomes and increasing eligibility, effective May 1, 2017.
  • Lower-income Ontarians and those living in eligible rural and northern communities will receive even greater reductions, as much as 40 to 50 per cent, as a result of the Fair Hydro Plan.
  • The province is also establishing an Affordability Fund that will be accessible to electricity distributors for customers who do not qualify for low-income conservation programs and who are unable to undertake energy efficiency improvements without financial assistance. This program is set to launch this summer.

To find out more, visit Ontario.ca/FairHydroPlan.

* Based on an average residential customer consuming 750 kWh per month, per year and an average small business customer consuming 2,000 kWh per month, per year.