Media Releases
FOR IMMEDIATE RELEASE
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SUNDAY - DECEMBER 04th, 2005
ABOUT THE “REGULATED PRICE PLAN”
Effective November 1, 2005 the Ontario Energy Board, announced a new Winter Threshold for Residential customers on the Regulated Price Plan. It is important to note that the rates for electricity have not changed. The rates on the Residential and Small Commercial rate card issued on April 1st, 2005 remain the same. The only change for Residential customers, is effective November 1, the new Winter Threshold kicked in.
The Ontario Energy Board regulates all of Ontario’s electricity industry and created a Regulated Price Plan for consumers. The Regulated Price Plan sets out prices per kWh that local distribution companies, including Cambridge and North Dumfries Hydro Inc., are to charge for electricity use.
In order to understand the Regulated Price Plan you should know, the following:
1. The price you pay for Electricity is set by the Ontario Energy Board
2. The price you pay for Electricity is based on a two-price structure.
3. The Regulated Price Plan only applies to your Electricity charges.
4. The Regulated Price Plan covers almost all consumers in Ontario.
Below are details on each of these issues.
1. THE ONTARIO ENERGY BOARD (OEB) SETS THE PRICE YOU PAY FOR ELECTRICITY
Actual market prices for electricity fluctuate up and down, hour by hour, by day and by season. To provide more stable and predictable pricing, and to reduce the exposure for you and other consumers from pricing fluctuations, the Ontario Energy Board created the Regulated Price Plan. It is designed to set stable prices for the electricity you use.
The current prices for Electricity took effect on April 1, 2005, and will remain unchanged until Spring 2006.
Starting in the Spring of 2006, and every six months after that, the OEB will adjust the price of Electricity. Changing the Regulated Price for Electricity on a regular basis will ensure price stability and balance in the long term, between what customers have paid for electricity and what it actually cost from the generators that produce the power.
2. THE PRICE YOU PAY FOR ELECTRICITY IS BASED ON A TWO-PRICE STRUCTURE
Under the Regulated Price Plan, the Ontario Energy Board sets two prices for Electricity usage; a lower price and a higher price. What you pay depends on how much electricity you use each month. You pay the lower price (currently 5.0 cents per kWh) up to a certain level of electricity used and a higher price (currently 5.8 cents per kWh) if you consume beyond that in a month.
Up until October 31, 2005, a customer paid the lower price, 5.0 cents/kWh for the first 750 kWh’s used in a month. After the 750 kWh’s of usage in a month, the higher price kicked in for the balance of electricity used in the month. That point where the price for electricity used in a month changes, is called the price "threshold".
Starting November 1, 2005, for Residential Customers only, the threshold will change. November is considered the beginning of the Winter Season and the OEB have established a threshold for the Winter season (1,000 kWh per month). In the Spring of 2006, the Summer Season will begin and a lower threshold has been established (600 kWh per month).
The purpose of the change in thresholds (amount of kWh’s you can use in a month at the lower price) is to allow customers to use more electricity at a lower price during the winter months when more electricity is typically needed for heating, light and indoor activities.
For Non-Residential customers, the price threshold will remain the same at 750 kWh for all seasons.
3. THE REGULATED PRICE PLAN ONLY APPLIES TO YOUR ELECTRICITY CHARGES.
If you look at your bill, it contains a number of different charges - Electricity, Delivery, Regulatory and Debt Retirement. The Regulated Price Plan only affects the "Electricity" lines on your bill - the cost of electricity supplied to you.
4. THE REGULATED PRICE PLAN COVERS ALMOST ALL CONSUMERS
In Ontario, the Regulated Price Plan covers almost all consumers of Electricity. This includes residential consumers, small businesses and other consumers designated by the Ontario government, such as municipalities, schools, universities and hospitals.
It does not, however, apply to large commercial or industrial consumers who use over 250,000 kWh per year. You don't have to do anything to "sign up" for the Regulated Price Plan - unless you have chosen another option, you automatically purchase the electricity from your utility and are charged the regulated prices.
UNDERSTANDING THE REGULATED PRICE PLAN
Cambridge and North Dumfries Hydro Inc., a local electric distribution company delivers electricity to 48,000 customers in the City of Cambridge and the Township of North Dumfries. In 2005 the provincial government empowered electric distribution companies in the province to design and deliver energy conservation and demand management programs to benefit their customers. Cambridge and North Dumfries deliver their conservation programs through their trademark EarthWise. Details on other EarthWise conservation initiatives can be found at www.camhydro.com.
FOR FURTHER INFORMATION CONTACT:
Cambridge & North Dumfries Hydro Inc.
Barbara Shortreed, Director Customer Care & Public Relations
519-621-8405, ext. 2227, bshortreed@camhydro.com
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