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Renewed Regulatory Framework for Electricity

On October 18, 2012, we released a report outlining a new approach to regulating electricity in Ontario: Renewed Regulatory Framework for Electricity Distributors: A Performance-Based Approach (RRFE).

We believed the industry needed to be regulated in a way that delivers greater value for money for consumers, now and in the future.  Our new approach addresses the needs of utilities while focusing on the expectations of consumers for reliable and affordable electricity service.

To read our report, visit our RRFE industry page.


Frequently Asked Questions

What is the Renewed Regulatory Framework for Electricity?
It’s an approach to rate-setting that considers costs and the upgrading of the electricity system. It will lead to a grid that is efficient, reliable, sustainable, and provides long-term value for Ontarians. Specifically, it’s focused on:

  • Aligning the needs of utilities and consumer expectations for reliable and affordable service
  • Putting attention on utility performance by creating formal goals and targets
  • Providing rate-setting options that reflect differing circumstances of utilities and their customers
  • Improving coordination and  planning, especially between neighbouring regions 

What is a regulatory framework?
It’s the overall approach and set of tools (for example, the method used to set electricity rates) that a regulator uses to make sure public policy goals, utility and consumer needs are met in a cost-effective manner. 

Why did the framework need renewing?
A number of factors prompted this:

  • Government policy
  • Aging utility grids and equipment
  • Customer concerns about rising rates
  • Increased maturity of the industry, and
  • A need to blend and strengthen the OEB’s policies when it comes to planning and rate setting.

The OEB needs to regulate utilities in a way that allows for a sustainable, financially viable sector while consumer needs for reliable power at a reasonable cost are met.

When will we see the benefits?
Utilities began using this framework for their rate applications in 2014. Visit our industry website to find out more about your utility’s performance.

More Information

Electricity Distributor Scorecards
The Scorecard measures how well Ontario's electricity distributors are performing each year. It is designed to encourage electricity utilities to operate effectively, continually seek ways to improve productivity and focus on improvements that their customers value.

Electricity Distributor Scorecards




Page last updated 2016-01-13

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