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Updates on the Government of Ontario’s Energy Transition Policy

Published on
April 22, 2022

As we approach the end of their four year-mandate, this past week has seen three substantive developments on the Government of Ontario’s policy approach to the energy transition, specifically concerning electricity pricing for Class B customers, expansion of the net-metering framework, and establishment of a new expert panel on our future energy needs.

- On April 20th, the Ontario Energy Board (OEB) announced a proposed draft timeline for development of their Class B Dynamic Pricing Pilot (CBDPP).

This project was initiated through Minister Smith’s mandate letter to the OEB last November, which referenced the Board’s staff research paper from 2019 on potential improvements to the recovery of Global Adjustment costs from Class B customers. The proposed schedule may include:

• July 2022 to November 2022: stakeholder consultations

• November 2022 to August 2023: application process

• August 2023 to March 2024: design work and recruitment

• March 2024 to September 2025: 18-months of field testing

• September 2025 to June 2026: project evaluation

- On April 21st, the Ministry of Energy implemented proposed amendments to the provincial Net Metering Framework allowing for third-party leasing and ownership of roof-top solar, and other renewable generation. These amendments were first proposed through an Environmental Registry of Ontario (ERO) posting made in November 2021, which Sussex summarized at the time.

- On April 22nd, the Ministry of Energy announced they’ll be launching the Electrification and Energy Transition Panel, to be Chaired by David Collie, former President & CEO of the Electrical Safety Authority (ESA). The Panel will provide advice and guidance on coordinating long-term energy planning, in particularly how to support growing energy demand and low-carbon fuel switching through emerging technologies – while delivering on sustainability and affordability.

Happy to help.

Please contact a Sussex consultant if you have any questions on what these policy developments may entail for your organization. Thank you.

Alex Simakov, Senior Associate, Energy Practice Group, asimakov@sussex-strategy.com

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