Rates, Price Drivers and 2026 Rules
Ontario Electricity Rebate 2026: why it fell to 15.7% and how it shows on your bill
The Ontario Electricity Rebate is 15.7% of the pre-tax bill from 1 November 2026, down from 23.5%. Who gets it, how it is prorated and how to check it.
The Ontario Electricity Rebate (OER) is a provincial credit applied automatically to eligible electricity bills. From 1 November 2026 it is 15.7% of the bill's pre-tax amount, down from 23.5%. Distributors such as Hydro One announced the change alongside the new Regulated Price Plan prices that took effect on the same day. Because the rebate is a percentage of electricity, delivery and regulatory charges together, a smaller rebate can offset much of the drop in energy prices. You do not need to apply: if your account is eligible, the credit appears as its own line on the bill.
This guide is part of our overview of electricity rates by province.
Who is eligible
As distributors describe it, the OER applies automatically to:
- residential customers, including seasonal residential accounts such as cottages;
- small business customers and any other customer using less than 250,000 kWh a year;
- registered farming businesses;
- certain other listed categories, such as licensed long-term care homes that do not share an account with a hospital.
It applies whether you are on the Regulated Price Plan (TOU, ULO or tiered) or have a contract with an electricity retailer. If you live in a building with a single bulk meter and pay for electricity through rent or a sub-meter provider, how the rebate reaches you depends on the billing arrangement; ask the company that bills you.
How the rebate is calculated
The OER is calculated on the pre-tax subtotal: the electricity (energy) line, delivery and regulatory charges. It is shown as a credit before HST.
Formula: OER = pre-tax subtotal × 15.7%
| Pre-tax subtotal | OER at 23.5% (old) | OER at 15.7% (from 1 Nov 2026) | Difference |
|---|---|---|---|
| $100.00 | $23.50 | $15.70 | $7.80 |
| $150.00 | $35.25 | $23.55 | $11.70 |
| $250.00 | $58.75 | $39.25 | $19.50 |
These subtotals are illustrative. Use the OER calculator with the subtotal from your own bill.
Bills that cover days before and after 1 November
Most bills cover a period that does not start on the 1st. When a billing period includes days before and after the change, the rebate is prorated. Hydro One explains that for the first bill issued after 1 November 2026, days in September and October are credited at 23.5% and days on and after 1 November at 15.7%.
Worked example (illustrative): a 61-day bill from 1 October to 30 November with a $240 pre-tax subtotal. If the subtotal is spread evenly by day: 31 days × ($240 ÷ 61) × 23.5% = $28.66, plus 30 days × ($240 ÷ 61) × 15.7% = $18.53, total OER ≈ $47.19. Distributors may prorate using actual daily usage, so your figure can differ slightly.
Why the rebate fell while prices fell
Prices and the rebate do different jobs. RPP prices are set by the Ontario Energy Board to recover the forecast cost of supply. The rebate is a provincial policy decision funded by the province, and its percentage is set by regulation under the Ontario Rebate for Electricity Consumers Act, 2016. When the OEB announced lower RPP prices for 1 November 2026, the rebate percentage was lowered at the same time. Media reports of the announcement put the estimated monthly rebate for a typical 700 kWh household at about $23, down from about $36.
The practical effect: compare total bills, not just the price per kWh.
Illustrative comparison, 700 kWh, tiered winter, same delivery charges:
| Line | Before 1 Nov 2026 | From 1 Nov 2026 |
|---|---|---|
| Energy (700 kWh tiered) | 700 × 12.0¢ = $84.00 | 700 × 11.2¢ = $78.40 |
| Delivery and regulatory (assumed, unchanged) | $60.00 | $60.00 |
| Pre-tax subtotal | $144.00 | $138.40 |
| OER | −$33.84 (23.5%) | −$21.73 (15.7%) |
| After rebate, before HST | $110.16 | $116.67 |
In this illustration the bill after the rebate rises by about $6.51 a month even though the energy price fell 6.7%. Your delivery charges and usage will produce a different result.
How to check the rebate on your bill
- Find the line labelled Ontario Electricity Rebate (it appears as a credit).
- Add electricity, delivery and regulatory charges to get the pre-tax subtotal.
- Multiply by 15.7% for days from 1 November 2026, or the prorated rate for a mixed period.
- If the credit is missing or far off, call your distributor. If your account is classed wrongly (for example, as a large commercial account), you may not be receiving it.
Related programs
The OER is not income-tested. Households with low income can apply separately for the Ontario Electricity Support Program (OESP), a monthly on-bill credit, and in an emergency for LEAP help with arrears. See low-income energy bill help. On-reserve First Nations customers have a separate on-reserve delivery credit; ask your distributor.
Mistakes to avoid
- Expecting the rebate on the energy line only. It applies to the whole pre-tax subtotal, so it is larger than 15.7% of the energy line.
- Cancelling a retail contract to "get the rebate back". Eligible retail contract customers get it too.
- Ignoring classification. A home business on a commercial rate class may still be eligible below 250,000 kWh, but check.
For the prices the rebate is applied to, see Ontario RPP prices from 1 November 2026; for the other lines in the subtotal, see delivery vs commodity charges.
FAQ
Do I have to apply for the Ontario Electricity Rebate?
No. Eligible accounts receive it automatically.
Does HST apply before or after the rebate?
The rebate is shown as a pre-tax credit. How HST appears follows the distributor's bill layout; ask your distributor if the lines are unclear.
Will the rebate change again?
The percentage is set by provincial regulation and has changed several times since 2019. Check your distributor's notice or the OEB each autumn.
Does natural gas get a rebate?
No. The OER applies only to electricity bills.
Sources
- Hydro One — rebate change to 15.7% effective 1 November 2026 and proration notice
- Ontario Energy Board — bill components and rebate explanation
- Ontario e-Laws — Ontario Rebate for Electricity Consumers Act, 2016 and its regulation
- Ontario Electricity Support Program — low-income credit application
