Ontario exploring cut to electricity rates for EV charger providers

Petro Canada's electric vehicle charging station is shown on display at the Canadian International Auto Show in Toronto on Thursday, February 14, 2019. THE CANADIAN PRESS/Christopher Katsarov

Ontario is exploring a new reduced electricity rate for providers of electric vehicle (EV) charging stations in hopes of encouraging further growth in the sector.

The government said the new rate, if approved, will become available by Jan. 1, 2026, with the Ontario Energy Board (OEB) starting consultations this month.

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The cut will be offered in areas where adoption of EV’s is on the slower side, or “where demand is only beginning to emerge,” said the province.

This would likely apply to chargers with 15 per cent utilization, although officials say this is subject to consultation with stakeholders.

“This is another step we are taking to give drivers in every part of our province, including rural Ontario, the confidence to transition to electric vehicles, and take advantage of our growing, world-class clean grid,” Energy Minister Todd Smith said in a statement issued Wednesday.

According to officials, providers incur costs when vehicles are not being charged, which means they can be rather expensive to operate in areas without a lot of EV traffic.

The ministry said it hopes that the lower rate will encourage providers to build more charging stations and therefore encourage certain communities to invest in electric vehicles.

Officials also said that they hope there will be a trickle down effect for consumers, although it is unclear if this will be the case.

“This rate aims to fairly allocate costs and better support the efficient integration of EVs in Ontario,” Susanna Zagar, CEO of the OEB, said in a statement. “We look forward to hearing from electricity distributors, EV charging service providers and other stakeholders to inform this work as we strive to solve energy challenges effectively and meet the demands of the energy transition.”

The changes follow news that Ontario will be home to yet another electric vehicle battery plant.

The provincial and federal governments announced last week that Honda will be expanding its assembly facility in Alliston at a $5-billion pricetag. About $2.5 billion will come from Ontario.

While the building of batteries is becoming a booming industry in Ontario — with Volkswagen and Stellantis already establishing plants in the province —supporting EV infrastructure is still needed.

In mid-April, the government said it would not be re-instituting a requirement that would have seen charging stations built in new homes.

“That’s a cost you will bear, not a cost to all Ontarians will bear on their behalf,” Government House Leader Paul Calandra said at the time, noting it’s about personal choice.

The government says they anticipate about a million electric vehicles will be on Ontario’s roads by 2030.