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BUSINESS PROTECTION PLAN REBATE

The Business Protection Plan Rebate paid to wholesale consumers ended March 31, 2005, with final payments to be made later this summer or early fall.

The Business Protection Plan Rebate is roughly half the difference between the market price and 3.8/kWh. Here's how to calculate it:

(Average Weighted Price minus Price Cap, divided by two) multiplied by (Your Consumption) = Your Rebate

If, for example, the weighted average price for the quarter is 5.4 /kWh and your organization used 100,000 kWh during the same period. The rebate would be calculated as:

(5.4 /kWh 3.8 /kWh)/2  x  (100,000 kWh) = $800

 

While the rebate is paid out on a quarterly basis, the calculations are cumulative over the year. This means that when it comes to determining the second quarter payment, the first quarter results are incorporated into the sum. So if the average price over the first and second quarters was 4.9/kWh and your consumption totaled 210,000 kWh. The rebate payment you would receive for the second quarter would be:

(4.9 /kWh 3.8 /kWh)/2  x  (210,000 kWh) - $800(1) = $350

 

(1) = Your payment from the first quarter

 

The IESO calculates and processes rebates to organizations who buy electricity through the market including your local utility who purchases energy on your behalf. In turn, your local utility calculates and distributes the rebate based on your share of total consumption within your utility's service area. The calculation of the rebate begins at the start of the market year which is May 1. Rebates are then issued at the end of each quarter. You should expect to see your rebate reflected on your next regular bill. If there is an overpayment from one quarter to the next, the amount of that overpayment is carried forward. Note that this calculation is only an approximation of your rebate. Rebates issued to companies that purchase electricity through their local utility may vary.

FOR MORE INFORMATION

In 2005, the Ontario government introduced a new global adjustment or Provincial Benefit for electricity consumers that pay the wholesale price of electricity.