Questions and Comments

Question / Comment:

If the merger is approved I think our bills will go up. Our Councillors need to tell us the truth.

Response:

Electricity distribution rates may not go down after a merger, but they’ll go up less than they would if Guelph Hydro continued to operate alone.

Even before realizing efficiencies, a merger allows customers to avoid an estimated 5% rate increase in 2021, and another estimated 5% increase in 2026.

That’s because the Ontario Energy Board allows merged companies to “sit out” of typical rate resets that happen every 5 years. This gives merged companies an opportunity to implement operational changes intended to reduce costs.

On top of those savings, a merger would reduce duplication and create operating efficiencies, and customers would further benefit from lower costs.

Compare residential electricity distribution rates: standalone versus merger

Year Standalone distribution charges/month Merger distribution charges/month Monthly Savings Annual savings
2018 $ 28.98 $ 28.98 $ 0 $ 0
2019 $ 29.44 $ 29.44 $ 0 $ 0
2020 $ 29.91 $ 29.91 $ 0 $ 0
2021 $ 31.72 $ 30.39 $ 1.33 $ 15.99
2022 $ 32.23 $ 30.88 $ 1.35 $ 16.25
2023 $ 32.75 $ 31.37 $ 1.38 $ 16.51
2024 $ 33.27 $ 31.87 $ 1.40 $ 16.77
2025 $ 33.80 $ 32.38 $ 1.42 $ 17.04
2026 $ 35.85 $ 32.90 $ 2.95 $ 35.38
2027 $ 36.42 $ 33.43 $ 3.00 $ 35.95

Note: Calculations based on average monthly household electricity consumption of 750kWh/month. Charges reflect electricity distribution rates. Other charges on your electricity bill may change during this period.

Learn more about the charges on your electricity bill

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