The Ontario Electricity Rebate Explained: What the 15.7% Credit Means for Your Bill

The Ontario Electricity Rebate (OER) is a provincial credit that appears automatically on eligible electricity bills and reduces the amount you pay before HST is added. From 1 November 2026 the Ontario Electricity Rebate is 15.7% of your pre-tax charges, down from 23.5%, so most households will see their bills rise this winter even if their usage stays the same.

This guide explains how the rebate is calculated, who receives it, why the percentage changes and what you can do about the higher bills that follow a lower rebate. Electricity rates and the rebate are set through the Ontario Energy Board (OEB) and the Government of Ontario; check oeb.ca (opens in a new tab) for official details because figures can change.

What is the Ontario Electricity Rebate?

The OER is a line on your bill, usually shown as a negative amount, that the province funds to lower the cost of electricity for homes, farms and small businesses. It was introduced in November 2019 and has been adjusted several times since, usually on 1 November when the OEB resets Regulated Price Plan (RPP) prices.

Key points:

It is automatic. You do not apply. If your account is eligible, your local distribution company (LDC) or unit sub-meter provider applies it.
It is a percentage, not a fixed amount. The more your pre-tax bill is, the larger the dollar credit.
It is calculated before tax. HST (13%) is charged on your full charges; the rebate is calculated on the pre-tax subtotal and then subtracted.
It applies to the whole bill, not just electricity. Delivery and regulatory charges are included in the base it is calculated on.

How is the rebate calculated?

The calculation is straightforward. Add up the electricity, delivery and regulatory lines, multiply by 15.7%, and subtract that from the total after HST.

Line	Calculation	Amount
Electricity (commodity)	750 kWh on Time-of-Use, winter split	$88.91
Delivery (illustrative)	Fixed charge plus transmission	$42.00
Regulatory (illustrative)		$4.00
Pre-tax subtotal		$134.91
HST	13% × $134.91	$17.54
Ontario Electricity Rebate	15.7% × $134.91	−$21.18
Total		$131.27

This is the same illustrative Toronto-area bill used in our guide to understanding your hydro bill. Delivery and regulatory amounts are estimates; yours depend on your LDC.

Note: Because the rebate (15.7%) is now only a little larger than HST (13%), the two roughly cancel out. Before November 2026, the 23.5% rebate more than offset the tax.

How much does the drop from 23.5% to 15.7% cost?

The change in rebate is 7.8 percentage points. To estimate the effect on your own bill, multiply your pre-tax subtotal by 0.078.

Pre-tax subtotal per month	Rebate at 23.5%	Rebate at 15.7%	Extra cost per month
$90 (small condo or apartment)	$21.15	$14.13	about $7
$135 (typical detached home)	$31.73	$21.20	about $10.50
$200 (larger home, electric water heat)	$47.00	$31.40	about $15.60
$350 (electric heat or heat pump, winter)	$82.25	$54.95	about $27.30

These are estimates based only on the rebate change. RPP prices also changed on 1 November 2026, and your winter usage is likely to rise, so your actual bill change may be different. Homes with electric baseboard heat or a heat pump will feel the change most in January and February. Our post on November 2026 price changes covers the rate side.

Who gets the Ontario Electricity Rebate?

According to the OEB, the rebate applies to eligible accounts, which include:

Residential customers, including those in houses, townhouses and individually metered condos
Small businesses with a monthly peak demand under 50 kW
Farms
Some long-term care homes and other designated consumers

A few situations need a closer look:

Bulk-metered condos and rentals. If electricity is included in your condo fees or rent, the building's account receives the rebate, not you. Whether that savings is passed on depends on your condo budget or lease.
Sub-metered units. Sub-metering providers are required to pass the rebate through on eligible residential bills. If you do not see it, ask your provider.
Retail energy contracts. If you buy electricity from a licensed retailer instead of on the RPP, the rebate generally still applies to eligible accounts. Your commodity costs are very different, though; see our guide to retail energy contracts.
Net-metered solar customers. The rebate is calculated on the charges you actually pay after credits are applied.

OER vs OESP vs LEAP: what is the difference?

These three are often confused. They are separate programs with different purposes.

Program	Who gets it	How you get it	Type of help
Ontario Electricity Rebate (OER)	Nearly all eligible residential and small business accounts	Automatic	Percentage credit (15.7% from November 2026)
Ontario Electricity Support Program (OESP)	Lower-income households	Apply through the OEB program	Monthly on-bill credit based on household size and income
Low-income Energy Assistance Program (LEAP)	Households behind on bills	Apply through local agencies	One-time emergency help

You can receive OESP and the OER at the same time. If your household income has dropped, it is worth checking OESP eligibility, because the credit can be larger than the change in the OER. Our guide to income-qualified energy programs explains how to apply and which free upgrade programs may also apply.

Why does the rebate percentage change?

The rebate is a policy choice by the province. In practice it is set alongside the November RPP price reset so that the combined effect on a typical bill follows a target the government sets. When RPP prices rise or fall, the rebate may be adjusted to moderate or pass through the change. The 2026 reduction to 15.7% shifts more of the system's cost back onto bills.

For homeowners, the practical point is that the OER is not guaranteed at any level. When estimating savings from efficiency upgrades or comparing a heat pump with gas heating, the editorial team suggests running numbers both with and without the rebate so a future change does not upset your plan.

What can you do about a higher bill?

You cannot change the rebate, but you can reduce the subtotal it is calculated on. Practical steps, roughly in order of payoff:

Check your price plan. If you can move laundry, dishwashing and EV charging to overnight hours, Ultra-Low Overnight pricing at 3.7¢/kWh may save money. Use our electricity price plan calculator before switching.
Find your base load. Your LDC's online portal shows hourly data. A home that never drops below 400 W overnight usually has standby or always-on loads worth tracking down.
Target big winter loads. Block heaters, space heaters, electric baseboards and dehumidifiers add up quickly in winter.
Consider an equal-payment plan. Spreading costs evenly does not lower your annual bill, but it makes winter months easier to manage.

Our step-by-step checklist to reduce your hydro bill covers these in more depth, and the hydro bill estimator shows the effect of the 15.7% rebate on your own numbers.

Frequently asked questions

Do I need to apply for the Ontario Electricity Rebate?

No. The rebate is applied automatically to eligible accounts by your LDC or sub-metering provider. If it is missing from a residential bill, contact your utility.

Is the rebate applied before or after HST?

It is calculated on the pre-tax subtotal of your electricity, delivery and regulatory charges, then subtracted from the bill. HST is calculated on the same pre-tax subtotal.

Will the rebate go back up?

There is no way to know. The percentage has changed several times since 2019 and is usually reviewed each November alongside RPP prices. Plan around the current 15.7% and confirm any change on oeb.ca (opens in a new tab) or ontario.ca (opens in a new tab).

Does the rebate apply to my natural gas bill?

No. The Ontario Electricity Rebate applies only to electricity bills. Natural gas bills from Enbridge Gas or EPCOR have their own structure; see our guide to understanding your gas bill.