Hydro Ottawa has been allowed to increase rates by an average of $5.87 per month starting in 2026, after Ontario’s energy regulator denied a larger proposed increase over five years.
Last month, the Ontario Energy Board (OEB) turned down Hydro Ottawa’s request to boost the distribution part of their monthly bills, which was set to begin on January 1, 2026. A major factor for the board was customer affordability.
Hydro Ottawa’s original plan would have charged the average residential customer-using around 750 kilowatt hours each month-an additional $6.08 per month in 2026 for electricity distribution before taxes and rebates.
This part of the bill would have gone up another $3.79 in 2027, $3.31 in 2028, $2.76 in 2029, and $2.78 in 2030.
The increase aimed to help cover costs for upgrades and expansions to the city’s grid as Hydro Ottawa seeks to accommodate rising demand over the next two decades.
Hydro Ottawa also pointed out several reasons for increasing operating costs, including serving more customers, investments in technology and cybersecurity, and handling storms and vegetation due to climate change.
The involved parties resolved most issues back in December.
In its decision on May 12, the energy board noted that it agreed with input from environmental groups, building owners, and consumer advocates who participated as intervenors. They described Hydro Ottawa’s proposed operational increase as “excessive, inappropriate and not supported by credible reasons,” according to the board’s statement.
Although Hydro Ottawa presented a five-year plan-as required by the board every ten years-the OEB clarified that its June 4 decision only pertains to changes effective for 2026 when speaking with on June 11.
“By reducing costs where appropriate and approving changes that support reliability, the OEB has ensured that rates remain just and reasonable while maintaining the quality of service customers rely on,” said OEB CEO Carolyn Calwell in a statement.
The OEB mentioned that this rate hike is retroactive from January 1; thus another $1.80 per month will be added on average until May 2027 to account for this adjustment.
Moving forward, Hydro Ottawa will need to submit a streamlined application each year for the next four years.
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