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Rate Design for Electricity Distributors (EB-2012-0410)

As part of the Renewed Regulatory Framework in Electricity, the OEB indicated that the revenue decoupling consultation would move forward.

The OEB believes that distributors should have a rate design that provides greater stability for the consumer and sends a price signal to consumers that links use to cost drivers. An appropriate rate design will link the consumer’s use to distributor planning and provide the revenue stream that will allow the distributor to make necessary investments.

This initiative builds on extensive work and consultations previously undertaken by the OEB.

The OEB has formed a working group to assist in developing guidance for the implementation of fully fixed distribution charges for residential customers in Ontario.




Issue / Document


Jul 16-15

The OEB has issued a letter outlining details regarding the implementation of the transition to fully fixed distribution charges for residential customers.

Apr 2-15

The OEB has issued its policy on fully fixed distribution charges for residential customers. This is an important step in the ongoing evolution of the electricity sector in Ontario.

Benefits to Consumers:

  • The rate change will focus conservation on the most appropriate portion of the bill, the Electricity line and customers will continue to receive strong conservation signals.
  • Residential customers will be able to leverage new technologies emerging in their local market.
  • Most customers will not see a significant change in their bill.  A phased-in implementation schedule over 4 years will smooth rate impacts.
  • Customers who have cost-intensive electric heat, many of whom are low-income, stand to gain from this change.
  • For now, the bill will look the same but will more accurately reflect the true cost of power delivery and production.
  • This will not change how much money a distributor collects, only how they collect it and increases customer understanding of rates.

Benefits to Utilities:

  • Distributors will be able to ready their grids for smart grid and green energy initiatives in a way that sustains their financial stability.
  • They will have the financial stability to plan their short- and longer-term budgets and manage a reliable distribution system.
  • This change is revenue neutral for local distributors

Jul 8-14

The following parties have provided written comments in the above matter.

Jun 3-14

The Board has posted staff notes from meetings with stakeholders on the Draft Report of the Board.

May 1-14

In order to accommodate meetings with stakeholders, the Board has revised the deadline for written comments on the Draft Report of the Board on Rate Design for Electricity Distributors (EB-2012-0410) to June 6, 2014.  The procedures for filing are described in the letter of April 3, 2014.

Apr 3-14

The Board issued the Draft Report of the Board on Rate Design for Electricity Distributors.

Nov 26-12

The Board issued a letter announcing a new consultation project to complete the work on Revenue Decoupling for Distributors.



On April 29, 2015, the OEB held the first meeting of the Rate Design Working Group (RDWG). The RDWG will provide feedback and guidance to OEB staff for the implementation of fully fixed distribution charges for residential customers in Ontario.

List of Member Organizations for the Rate Design Working Group:

  • Consumers Council of Canada
  • FortisOntario Inc.
  • Hydro One Networks Inc.
  • Midland Power Utility Corporation
  • Toronto Hydro-Electric System Ltd.
  • Veridian Connections Inc.
  • Wasaga Distribution Inc.
  • Vulnerable Energy Consumers Coalition

Disclaimer: Information contained in working group notes/documents represent the views of the individuals participating in the working group only, and in no way reflect official Ontario Energy Board position or opinion.


Working Group Meeting Materials


Issue / Document


May 27-15

Apr 29-15






Issue / Document


Jun 23-15

 The OEB has issued its Decision and Order on Cost Awards.

Apr 30-15

The OEB has issued its Notice of Hearing for Cost Awards.

May 29-14

The Board has issued its Decision on Cost Eligibility in the above matter.

Apr 24-14

The following parties have requested cost eligibility in the above matter.







Page last updated 2017-02-17

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