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The Regulated Price Plan Settlement FAQs
- What is the RPP Settlement?
- Why do I have to settle my Regulated Price Plan account with the utility?
- Under what circumstances do I have to settle with my utility?
- If a consumer on the Regulated Price Plan moves within Ontario, and as a result has their electricity provided by another utility, will they have to settle their account?
- When and how does it appear on my electricity bill?
- What about consumers that remain on the Regulated Price Plan?
- How can I find out how much I would pay or receive?
What is the RPP Settlement?
This is a one-time charge or credit that will appear on your electricity bill if you leave the Regulated Price Plan under any of the four circumstances described below. It exists because you have to settle your outstanding Regulated Price Plan account with your local utility.
Why do I have to settle my Regulated Price Plan account with the utility?
On the Regulated Price Plan, you are charged a regulated stable price (set by the Ontario Energy Board) for the electricity you consume. That price may not reflect the prices paid to generators. Eventually the difference needs to be settled for all consumers on the Regulated Price Plan. That difference is tracked (in something called a variance account) and incorporated into future Regulated Price Plan prices set by the OEB. For consumers that leave the Regulated Price Plan, that difference needs to be settled upon leaving:
- You will be reimbursed if consumers on the Regulated Price Plan have been paying more for electricity than was paid to generators; or
- You will need to pay your local utility if these consumers have been paying less than was paid to generators.
Under what circumstances do I have to settle with my utility?
You will need to settle the outstanding Regulated Price Plan account you have with your utility if you leave the Regulated Price Plan by:
- Signing a contract with an electricity retailer;
- Cancelling your account and moving outside of Ontario;
- Buying electricity through spot market pricing, in which you pay the actual wholesale market prices which change every hour of each day (this option is only available for a limited number of consumers who have an interval meter); or
- No longer remain eligible for the Regulated Price Plan as set out in Government regulation.
The settlement relating to your electricity use while you were on the Regulated Price Plan may be either a credit or a charge.
If a consumer on the Regulated Price Plan moves within Ontario, and as a result has their electricity provided by another utility, will they have to settle their account?
No. Only consumers who move outside of Ontario or leave the Regulated Price Plan as per the other two options above will need to settle their Regulated Price Plan account.
When and how does it appear on my electricity bill?
This is a one-time charge or credit, called the "RPP Settlement", that will appear on your final bill as a Regulated Price Plan consumer.
What about consumers that remain on the Regulated Price Plan?
All consumers on the Regulated Price Plan will pay or receive the difference between the Regulated Price Plan price and the actual price of electricity that is paid to generators. That difference is included in future Regulated Price Plan prices (set by the OEB) for consumers that do not leave.
How can I find out how much I would pay or receive?
The OEB currently posts a ¢/kWh value on the Web site. You can estimate the amount you would receive or pay by multiplying this value by your consumption over the most recent 12 months. This ¢/kWh value is called the "Final RPP Variance Settlement Factor" and is updated around the 15th of each month. Please see the Final RPP Variance Settlement Amount web page.
If it is updated every month, how do I know which factor applies to me?
The Final RPP Variance Settlement Factor that applies to you is the one that is in effect when your local utility does your last meter reading as a Regulated Price Plan consumer.