Ontario to Cut Electricity Bill Rebate by a Third Starting November 1

By Tahani Elghazaly
Published October 16, 2026
Updated October 16, 2026

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Ontario electricity customers will see their provincial rebate shrink by nearly a third next month, adding to household and business costs as the province scales back a major electricity affordability program.

Starting November 1, 2026, the Ontario Electricity Rebate will fall from 23.5% to 15.7% under a regulation filed October 9. The reduction applies to eligible households, small businesses, farms and other qualifying customers who receive the discount automatically on their electricity bills.

For every $200 in eligible pre-tax electricity charges, customers will receive a $31.40 rebate instead of $47, leaving them paying an additional $15.60 before any tax effects, assuming unchanged electricity rates and consumption. The 7.8-percentage-point reduction applies to the rebate, not to the entire electricity bill. Actual increases will depend on individual usage and charges.

The cut partially reverses an increase introduced in November 2025, when Ontario raised the rebate from 13.1% to 23.5% to help offset an approximately 29% rise in electricity prices. The program cost the province about $2.6 billion in the 2025–26 fiscal year, roughly $361 million more than the previous year.

Energy Minister Stephen Lecce previously described the program's rising costs as financially unsustainable, arguing that provincial resources must also support other public priorities. The decision has drawn criticism from New Democratic Party energy critic Jamie West, who questioned the government's move to reduce relief while residents are struggling with living expenses.

The rebate reduction also comes as Ontario Power Generation seeks approval for higher payments for nuclear-generated electricity beginning in 2027. Its application covers the period through 2031 and remains under review by the Ontario Energy Board. Those proposed increases have not been approved and are separate from the confirmed November rebate cut.