Broadening Rural or Remote Rate Protection

Reducing electricity costs is part of Ontario's plan to create jobs, grow our economy and help people in their everyday lives

Thursday, May 4, 2017

The Rural or Remote Rate Protection (RRRP) program provides a rate subsidy to rural and remote residential customers who face higher distribution costs compared to urban areas.

The RRRP is currently provided to approximately 350,000 rural residential customers in Ontario.

The Province will expand the RRRP to provide distribution charge relief to additional customers served by LDCs with the highest rates. About 800,000 customers would benefit from the enhanced RRRP program. LDCs benefitting from the expanded RRRP include: Hydro One R2 and R1 customers, Northern Ontario Wires, Lakeland Parry Sound, Chapleau, Sioux Lookout, InnPower, Atikokan and Algoma.

The Province will also move to fund RRRP costs through the tax base, reducing regulatory charges for all Ontario ratepayers.

Expanding the Ontario Electricity Support Program (OESP)

The OESP is an income-tested, application based program that lowers electricity costs for the most vulnerable consumers, providing a rebate directly on bills. There are two scales: one with basic credits, and an enhanced credit for Indigenous people or those who use electric heat or certain electrically intensive medical devices.

Ontario is increasing the OESP by 50 per cent, meaning that single, low-income consumers who receive the lowest credit amount would get an increase from $30 to $45 per month ($540 per year, an increase of $180), and the lowest credit for the enhanced scale would increase from $45 to $68 ($816 per year, an increase of $276).

Ontario is exploring automatic qualification for customers who are enrolled in other provincial low-income social programs.

The Province is also moving forward in having the OESP funded by provincial revenues, reducing regulatory charges for all Ontario ratepayers.