OPG Seeks Rate Hike
April 30, 2014
On March 29, Ontario Power Generation (OPG) announced that it seeks to raise its rates by 9.6 percent. Combined with the implementation of the Harmonized Sales Tax (HST) on July 1, which will increase consumption levies on energy bills to 13 percent from 5 percent, Ontario consumers could be in store for costly energy bills; especially when considering that Environment Canada predicts an 80-89 percent chance that residents of Southern Ontario will experience warmer than average temperatures this upcoming summer.
Say that on average, your monthly hydro bill amounts to $100 before taxes, OPG's rate increase combined with implementation of the HST tax will increase your bill to roughly $120 per month, ultimately costing you an additional $250 each year.
Remember, heat flows naturally from warmer to cooler spaces. During the summer, heat moves from the outdoors to the house interior. To maintain comfort, heat gained in summer must be removed by your air conditioner, resulting in higher hydro bills. By insulating your home, you can decrease your hydro bills by up to 30 percent, saving you up to $30 a month and up to $360 per year, giving you a return on your investment (ROI) in as little as two years.