Regulated Price Plan Variance Settlement
On April 1, 2005, the Ontario Energy Board introduced the Regulated Price Plan (RPP) for customers who purchase electricity through their local distribution company.
Under the RPP, consumers are charged a regulated stable price for the electricity they consume. The regulated price was set by the Ontario Energy Board based on a forecast of the expected cost to supply RPP consumers for the year beginning April 1, 2005, when the RPP was introduced. The Ontario Power Authority then tracks the regulated price throughout the year, and any time when the price differs from what the generators are paid, the amount is collected in a monthly variance account. If consumers paid more for electricity than was paid to generators, the amount will be a credit. If consumers paid less for electricity than was paid to the generators, the amount will be a charge. The difference is then incorporated into the next RPP price set by the Ontario Energy Board and will be effective from May 1, 2006 for customers that remain on the Regulated Price Plan. For those customers that choose to leave the plan, the difference will be settled on their final bill.
The final RPP variance settlement amount applies to a consumer on the Regulated Price Plan, (RPP) who:
Cancels their account and moves outside of the Province of Ontario
Switches to a retailer; or
Elects the spot market pricing option; or
No longer remains eligible for Regulated Price Plan
For more information on the RPP variance settlement and calculation please visit the Ontario Energy Board's web site.
