Ontario Adopts Pilots For Alternative Dynamic Pricing Options For Default Service
August 29,2017
As part of a review to redesign its Regulated Price Plan (RPP), which sets prices for more than 90% of Ontario’s electricity customers, the Ontario Energy Board has authorized pilots, which are to collectively serve 18,000 customers, for additional TOU and other default service pricing options.
Pricing plans under the pilots include:
• Enhanced Time-Of-Use: a larger difference between off- and on-peak prices. The time-of-use (TOU) time periods remain unchanged.
• Quick Ramping Critical Peak Pricing (CPP): a lower off-peak rate combined with a higher critical peak rate during short periods when demand for electricity is forecast to be highest.
• Variable Peak Pricing with CPP: a peak rate that varies depending on system demand, combined with a higher critical peak rate during short periods when demand for electricity is forecast to be highest.
• Low Overnight: a lower-priced period from 12am to 6am all year round, coupled with higher mid- and on-peak rates.
• Seasonal Time-of-Use with CPP: two TOU periods (no mid-peak) for three months both in the summer and winter and a flat rate for three months both in the spring and fall, combined with a higher critical peak rate during short periods when demand for electricity is forecast to be highest in the summer and winter months.
• Super-Peak Time-of-Use: a simplified two-price plan (on- and off-peak prices only), combined with a higher “super peak” period on summer weekday afternoons
Market rule changes have led to a sharp decline in the number of customers on competitive supply in Ontario
Yet Ceiran Bishop, manager of strategic policy for the OEB, observed in a news release about the pilots, "Customers want more choice in how they pay for electricity"