Toronto

Summertime hydro rates to drop, Ontario Energy Board announces

Hydro rates for households and small businesses will drop effective May 1, the Ontario Energy Board announced Tuesday.

New electricity prices take effect May 1

The Ontario Energy Board announced the new electricity prices for residential and small-business customers for summer 2017, which take effect May 1. (Gary Solilak/CBC)

Hydro rates for the average household will drop by about 17 per cent effective May 1, the Ontario Energy Board announced Thursday.

The slash in the price of electricity comes after Premier Kathleen Wynne's government announced its plan for across-the-board cuts to hydro bills. It will be the biggest one-time drop ever in hydro prices in Ontario.

The Ontario Energy Board (OEB) sets the per-kilowatt-hour prices every six months. 

The Wynne government has promised that after this cut in electricity costs, prices will not rise above the rate of inflation for the next four years. 

Last summer, rates went up 2.5 per cent, something the OEB blamed on lower-than-expected electricity usage during the mild winter of 2015-16. It contributed to growing voter anger over hydro prices, which nearly doubled in the space of a decade.