Hydro rates are on the way up for the first time since June

Hydro

While we're still in the midst of the second wave of the COVID-19 pandemic, the Ontario Energy Board has approved a rate hike that kicks in on November 1st.

It also means we'll see a return to Time of Use pricing, meaning you have to pay more or less, depening on the time of day you consume electricity.

Through the majority of the pandemic, you've been paying a flat rate. The last time rates went up was on June 1st, to 12.8 cents per kilowatt hour.

The board is also introducing a tiered pricing model, which allows you to use a certian amount of electricity at a lower price, but once you pass that limit, you'll pay more.

The increase is along the lines of inflation, at just under 2%, which works out to about $2.25 for the typical residential user. That's after accounting for the Ontario Electricity Rebate.

The province has also increase that, bt nearly 2% from 31.8% to 33.2%.

The OEB says the increase reflects a combination of factors including the pandemic which has impacted demand supply costs and prices.

If there's less usage, there's less demand with which to spread out the fixed costs.