Distributed Rate Protection
The Ontario Energy Board (OEB) released a Decision and Order that establishes the maximum monthly base distribution charge for eligible Distribution Rate Protection customers is $42.88 for electricity consumed on or after July 1, 2025.
What is the Distributed Rate Protection?
In 2017, through amendments to the Ontario Energy Board Act, 1998 (OEB Act) and a related regulation (the DRP Regulation), the Government of Ontario established the Distribution Rate Protection (DRP) program for residential customers who live in certain areas with higher distribution costs, funded through provincial revenues.
The DRP program provides for a cap on the amount that can be charged for base distribution charges, which consist of the base monthly fixed service charge and, for those distributors that still have one, the base variable distribution charge as well. The OEB calculates the cap or maximum monthly base distribution charge based on the parameters outlined in the DRP Regulation. The DRP Regulation requires the OEB to establish the maximum charge annually.
Changes to the DRP – Effective July 1st, 2025
On June 17, 2025, the OEB released a Decision and Order which establishes the maximum monthly base distribution charge that utilities subject to the DRP program can charge an eligible residential customer for consumption on or after July 1, 2025.
The maximum charge will increase by 3.6 % (the OEB’s approved 2025 inflation factor), from $41.39 - $42.88 per month.