Ottawa residents can expect an uptick in their power numbers, as Hydro Ottawa was given the green light to raise its rates. The Ontario Energy Board (OEB) approved the city's utility company to raise distribution rates by $5.87 a month in 2026 for residential customers, retroactive to Jan. 1, adding an extra $1.80 to the monthly bill until May 31 of next year.
The increase in the distribution charge comes just more than a month after the OEB rejected Hydro Ottawa's proposal to raise distribution rates by $6.08 per month, citing affordability issues at the time, calling the increase, “excessive, inappropriate and not supported by credible reasons,” the OEB said in a statement on May 12.
If the proposal would have been approved, rates would have increased another $3.79 in 2027, $3.31 in 2028, $2.76 in 2029 and $2.78 in 2030. The increase is expected to partially pay for upgrades and expansions to the city's grid, as Hydro Ottawa looks to meet increased demand over the next 25 years, transition to 100% emissions-free, clean energy to reduce greenhouse gases, while replacing older equipment with new technology.
Before this proposal was approved, Ottawa Hydro charged a flat monthly distribution fee of approximately $40.59 per month for a residential user before additional fees and credits. Closer to home, according to the now approved Toronto Hydro 2025-2029 Investment Plan, the proposed monthly distribution charge for a typical 750 kWh per month residential user in 2027 would be $53.05, increasing to $57.02 in 2028 and $59.88 in 2029. According to Toronto Hydro, its distribution charge is approximately $51.18 per month, before charges and credits. The 750-kWh benchmark established by the OEB represents the average monthly electricity consumption of a typical residential customer in the province.
