NEWS
 
WATCH: You could feel the pinch as province announces hydro bill changes
Debt Retirement Charge will go but so will the Clean Energy Benefit
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It looks like you'll be paying about $120 more on your hydro bills.

The province has officially announced it will take the Debt Retirement Charge off of residential hydro bills starting on January 1st, 2016. However, that doesn't mean you'll be saving money.

Despite not having to deal with the extra $70 per year charge to pay down the stranded debt, it comes at the same time Queen's Park ends the savings from the Clean Energy Benefit. That saves you an average of $180 per year.

When the dust settles, that means you're paying an extra $110 each year, on average.

But there's more.

Energy Minister Bob Chiarelli says the province will put in place a new program to help lower income earners deal with the price adjustment, but offered little details on who would qualify and how much savings they would receive.

He says the program would be paid for by ratepayers - adding almost a dollar per month or an extra $11 per year.

Chiarelli says the good news is that hydro rate-increases will almost level off in a few years and they won't be as steep.

The 10 per cent Clean Energy Benefit was put in place as a temporary savings measure.

The Debt Retirement Charge was put into place to deal with the left-over debt when the province broke up Ontario Hydro in 1998 to form Hydro One and Ontario Power Generation.

It will only be removed as planned if the May 1st budget passes.

 

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5 0

It looks like you'll be paying about $120 more on your hydro bills.

The province has officially announced it will take the Debt Retirement Charge off of residential hydro bills starting on January 1st, 2016. However, that doesn't mean you'll be saving money.

Despite not having to deal with the extra $70 per year charge to pay down the stranded debt, it comes at the same time Queen's Park ends the savings from the Clean Energy Benefit. That saves you an average of $180 per year.

When the dust settles, that means you're paying an extra $110 each year, on average.

But there's more.

Energy Minister Bob Chiarelli says the province will put in place a new program to help lower income earners deal with the price adjustment, but offered little details on who would qualify and how much savings they would receive.

He says the program would be paid for by ratepayers - adding almost a dollar per month or an extra $11 per year.

Chiarelli says the good news is that hydro rate-increases will almost level off in a few years and they won't be as steep.

The 10 per cent Clean Energy Benefit was put in place as a temporary savings measure.

The Debt Retirement Charge was put into place to deal with the left-over debt when the province broke up Ontario Hydro in 1998 to form Hydro One and Ontario Power Generation.

It will only be removed as planned if the May 1st budget passes.

 

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