Based on the average cost of electricity, the government of Ontario decided to remove the initially decided fixed rate of CAD0.101/kWh and establish the COVID-19 recovery rate of CAD0.128/kWh until October 2020. This will provide customers with greater flexibility in using electricity without paying high peak or mid-peak prices, says GlobalData, a leading data and analytics company.

Somik Das, Power Analyst at GlobalData, comments: “Having initially fixed the lowest winter 2019 rate, Ontario’s Government has set the new COVID-19 recovery rate based on the average cost of electricity as economic activities are gradually restarting. This $175m initiative will eliminate residential, farm and small business consumers’ peak pricing and establish a constant price. This will allow cash-crunched businesses to manage their finances more effectively, where electricity consumption might be more cost-effective.

“However, the initiative is temporary, initially provided for 45 days starting on March 24, therefore an extension of the implementation timeframe will need to be granted for Ontario’s customers and businesses to truly benefit, as people continue to stay home and economic activities are gradually initiated in phases.”