The Ontario Electricity Rebate is a provincially funded program to help residents, small businesses, farms, and other eligible customers across the province in managing the cost of electricity. As of November 1, 2023, the OER provides an immediate benefit of 19.3% off before HST on one's electricity bill. This rebate comes as part of Ontario's broader package to make energy more affordable and clearer.
Knowing what precisely a reduced OER is, who is eligible, and how it ascertains an electricity bill clearly helps you in maximizing your savings and managing your bill payments if not all, most of your monthly expenses. The guide that follows seeks to provide the reader with an overview concerning the OER—its purpose, method of calculation, eligibility criteria, application process, impact on a bill, and resources for further details.
What Does the Ontario Electricity Rebate (OER) Do?
It provides a rebate on electricity bills directly to eligible consumers. Thus, this helps to lower the cost of electricity. In other words, this is a 19.3%, pre-HST discount for the pre-HST cost of electricity including an electricity charge, delivery charge, and a regulatory charge, which generally reduces the financial burden that electric costs create from residential consumers' pockets to small businesses and farms and all other types of eligible customers. The OER appears as a line item on your electricity bill, so you know precisely how the rebate is being returned to you. This rebate will replace the former 8% Provincial Rebate but at a higher discount to help with rising energy prices.
How Does the Ontario Electricity Rebate (OER) Calculation Work?
The Ontario Electricity Rebate is a very simple calculation, that is applied before HST and to the base amount of your electricity bill. The base amount consists of all of the line items on your bill for electricity usage, delivery, and regulatory fees, but excludes any additional charges such as late payment fees or charges for other services. For those receiving the Ontario Electricity Support Program credit, the OER amount is calculated prior to deducting the OESP credit from the total bill so that it's going to give you the most financial relief, which will be directly reduced from the basic costs of electricity consumption.
Who Are the Eligible Customers for the Ontario Electricity Rebate (OER)?
he Ontario Electricity Rebate applies very broadly. The majority of people it assists are residential customers, small businesses, farms, and long-term care homes. Given that most residential and small business customers have demands of less than 50 kW, the vast majority will not need to apply to receive the rebate. Most class residential and small business enterprises would fall into this category—such as a standard household, farm, or small commercial enterprise.
Effective July 1, 2022, the following additional eligibility criteria were added: certain multi-unit complexes, retirement residences, and mobile home parks. Specifically, accounts for common elements of multi-unit complexes that are primarily residential, have at least two types of qualifying units, now also fall within this class. Retirement residences where at least 50% of the units are occupied by individuals aged 65 or older, together with mobile home parks as defined under the Residential Tenancies Act, 2006, round out this class.
Also eligible would be some commercial types of customers, specifically those with greater electricity demands of more than 50 kW or whose consumption has been more than 250,000 kWh on an annual basis in the previous year, provided the following conditions are met: if the customer is a farming business, if the customer's business involves a long-term care home, or if the majority is a residential multi-unit complex. A self-declaration form needs to be filled out by these customers for them to obtain this rebate.
Does the Ontario Electricity Rebate (OER) Need Application?
For most eligible consumers, the Ontario Electricity Rebate is provided automatically; one does not apply. It applies to low-volume consumers: residential purposes, small businesses—the electricity demands of which are 50 kW or less—the rebate for those consumers would be on the electricity bill as a line item. The process will be much easier, and the consumers will have a financial benefit with no extra red tape.
But some need an application in order for the OER to be applied. In particular, multi-unit complexes, large farms, and all commercial customers whose demands are larger than 50 kW or whose annual consumption is larger than 250,000 kWh shall be required to file a self-declaration form, proving eligibility for the said rebate rate and ensuring that it is applied correctly on the proper account. The process of self-declaration lets the Ontario Energy Board keep an updated record of the same and ensures that the rebate is going to reach the right person, hence not hampering the integrity and effectiveness of the program.
Can I Expect Higher Bills Because of the Changes?
While this rebate from Ontario Electricity Rebate certainly delivers major savings, electricity bills may further vary due to several factors: the most important being changes in electricity rates, seasonal variations in consumption, and extra charges not covered with this rebate. The OER offsets these costs partially but does not eradicate the possibility of higher bills during peak usage periods.
It's important to note that the purpose of the OER is to reduce increases in electricity costs, not eliminate them. For instance, based on when more electricity is used during the year, or in response to various changing market conditions, infrastructure investments, and regulatory requirements, the Ontario Energy Board sets different electricity rates. All these changes could possibly represent higher overall costs; the OER therefore offsets such by cutting off part of your bill prior to HST.
Which Resources Offer More Details Concerning the Ontario Electricity Rebate (OER)?
There are several ways to get complete and up-to-date information about the Ontario Electricity Rebate. Just log in to the website of the Ontario Energy Board for a detailed understanding of what exactly is the rebate, claiming eligibility, and how this rebate will be shown in your bill. You can even refer to the official website of the Ontario government in order to know the legislation behind the OER and all the recent developments or amendments affected therein.
Also, your local electricity provider may have some special information on their website about their billing processes and how to contact customer service with questions or for more help.
How Customers Can Reduce the Electricity Bill
This will involve a combination of efficient practices and strategic investments. Following are eight effective ways to lower electricity expenses:
- Switch to LED Lighting: It uses very minimal energy compared to the traditional bulbs and lasts way longer, reducing both energy consumption and replacement costs.
- Switch Off Idle Electronics: Though already turned off, many devices that stay plugged in continue to draw phantom power. This is an excessive load of energy that can easily be eliminated by two ways. These include simply unconnecting the device, or using smart power strips.
- Use programmable thermostats: Those are devices that, according to your schedule, automatically lower or raise the temperature. Hence, they trim your heating/cooling costs when you're away from the house.
- Gently Improve Your Home's Insulation: Proper coating will keep your property warm during winter and cool during summer. This lowers the usage of heating/cooling while bringing down the expenses of energy bills in these processes.
- Keep HVAC Systems in Good Working Order: Actually, regular servicing of heating/ventilation/air conditioning systems is crucial. It prevents them from malfunctioning by ensuring the system runs efficiently, thereby saving vast amounts of energy consumption.
- Install Energy-Efficient Appliances: They use less energy than their regular counterparts. Thus, they help you save in the long run.
- Harness the Power of Natural Light: Make good use of it during the day to reduce the artificial one. Open curtains and blinds for sunlight. This shall additionally help provide some warmth in cold weather.
- Invest in Solar Generators: Solar generators offer a renewable source of energy, so users become less dependent on the grid. Here are two strongly recommended options to do just that for you:
BLUETTI AC70+PV350
It is topped with 1,000W of power output and 768Wh cubic capacity. Thus, this could well turn into a versatile but efficient solution for too many energy requirements. Other than the PV350 collector, it has been powered by 950W turbo charging to bring it to 80% from nil in just about 45 minutes and fast solar intake of 500W that could get the system full in about two hours. Besides having versatile charging through seven outlets, it also introduces the LiFePO4 battery that has more than 3,000 cycles for long-lasting reliability. Smart control by remote is another feature with the help of a BLUETTI app.
BLUETTI AC200P+2*PV200
It is one of the more storied solutions, given its 2000W AC pure sine wave inverter and a capacity of 2000Wh, making it suitable for extensive energy demands. Besides the PV200 collectors, it has a long life LiFePO₄ battery with more than 3,500 life cycles at 80%, which also means less degradation. This kit further provides 17 outputs to power multiple devices simultaneously while it recharges itself in seven ways: solar, AC, car, generator, lead battery, dual AC, and AC+solar.
Final Thoughts
To sum up. the Ontario Electricity Rebate is a useful initiative that allows for the reduction in cost of electricity to eligible customers. Knowing the details of the OER, including the eligibility criteria and the manner in which it gives a rebate, will help guide you on managing your electricity expenses. Also, trying out energy-saving practices and investing in renewable energy solutions such as solar generators shall further reduce electricity bills and help lead towards a more sustainable life.
