Electricity rates reduced for Oshawa users

By Courtney Bachar/The Oshawa Express/LJI Reporter

Oshawa residents are going to be seeing some changes on their electricity bill.

The province announced some initiatives recently that Oshawa Power President and CEO Ivano Labricciosa says will be great for Oshawa consumers.

“Given the situation and this time where [COVID-19] is affecting everyone, people are finding the need for assistance and the government did a great job,” he says.

The province suspended time-of-use (TOU) electricity rates and announced a new fixed COVID-19 Recovery Rate of 12.8 cents per kilowatt hour, which commenced June 1.

While some people may find the new fixed rate high, Labricciosa says the price of electricity is more expensive in the summer months, and when compared to a peak rate last year of 20 cents and a mid-rate of 14 cents, he says it’s a great rate.

“I think it’s great for people in Oshawa that they didn’t have to go to the highest rate. That’s what we’re looking for and I’m pleased the government went towards that,” says Labricciosa, noting the new fixed rate applied to about 80 per cent of Oshawa consumers.

The COVID-19 Recovery Rate will be in place until October 31, 2020, followed by a new customer choice initiative, according to a press release by the province.

“Starting Nov. 1, 2020, customers will be able to choose a plan that best suits their household and lifestyle with the option of either TOU electricity rates or tiered pricing, which will provide a set rate for electricity up to a certain level of consumption,” the release reads.

The province also announced $9 million for the COVID-19 Energy Assistance Program (CEAP), which supports consumers struggling to pay their energy bills during the pandemic. CEAP provides one-time payments to consumers to help pay down any electricity bill debt incurred during the pandemic.

Furthermore, the province is providing $8 million for the COVID-19 Energy Assistance Program for Small Business (CEAP-SB), which provides support to businesses struggling with bill payments as a result of the outbreak.

“Most [small businesses] have closed down and are concerned about opening back up, keeping the cash flowing and paying the bills,” says Labricciosa, adding a business can’t open without electricity, and air conditioning, especially heading into the summer months.

“I think this is going to be very helpful and I think in Oshawa that’s going to make a difference for people.”

The province is also rolling out a Low-Income Energy Assistance Program (LEAP) of about $4 million, which Labricciosa says will result in about $30,000 for Oshawa.

“For the government to use this money to help offset the burden on people that are going to find paying their bills tough is very good,” he says. “The government has been listening to people, that people are going to need help.”

He says power usage overall continues to trend down by about five to eight per cent, noting residential usage is up by about five per cent, but the commercial and industrial usage has dropped by about 15 per cent, which averages out to a net drop.

Labricciosa says Oshawa Power continues to operate under safe working measures and is continuing to respond to all connections.

“Like all other utilities, we’re an essential service, so we respond to that naturally. We’re still doing construction and we’re still doing the work, which means investing in the plans that need to be replaced,” he says.

“I think it’s the untold story that is missed out there, that we haven’t skipped a beat. We’ve adjusted our processes and we’re still facing our customers with the same service and response that we did pre-COVID, during COVID, while not exposing our workers to any undo dangers or hazards,” Labricciosa continues. “It really is about using our techniques around safety and I’m really proud of our team.”

With the loss in revenue from the drop in commercial and industrial use, Labricciosa says adjustments were made on the workforce with seven employee layoffs to offset the revenue loss, which he says accounts for about 10 per cent of staff.

Despite the change, Labricciosa says customers will not see a difference in service.

“I’m bringing in less money and I have the same expenses, so we’ve had to trim expenses, ultimately being labour, but we’re working really hard to make sure that we’re minimizing the impact on everybody else,” he says.

“We’re looking forward to the day that, as the economy opens up, we can bring these people back.”