DRC Exemption Available to Multi-Residential Properties

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Most electricity users in Ontario currently pay Debt Retirement Charge (DRC) on their electricity consumption.

Effective January 1, 2016, all Ontario electricity users with a residential‑rate class account will be exempt from the DRC.

There is an opportunity to apply for a DRC exemption available to multi-residential properties with a general service‑rate class account that provides electricity to one or more ‘eligible residential units’.

Eligible meters will be exempt from the DRC for up to 1,500 kilowatt hours (kWh) per month multiplied by the number of eligible residential units included in the account.

An eligible residential unit must meet the following requirements:

  1. a self‑contained set of rooms located in a building or structure,
  2. contains kitchen and bathroom facilities that are intended for the use of the unit only, and
  3. is used or intended for use as a residential premises.

In order to qualify for the new DRC exemption users with a general service‑rate class account must provide their electricity distributor with the notice of the number of eligible residential units included in the account. The effective start of the DRC exemption for these users depends on when the notice is received by the electricity distributor.

For non-residential accounts not eligible for exemptions, the Debt Retirement Charge will continue until the residual debt has been retired.

More information on eligibility and how to apply for an exemption can be found at the Ontario Ministry of Finance page http://www.fin.gov.on.ca/en/guides/drc/110.html

History of DRC: When the former Ontario Hydro was re-structured on April 1, 1999, the Ontario Electricity Financial Corporation (OEFC) was established with the mandate to manage and retire the former Ontario Hydro’s debt and certain other liabilities, totalling $38.1 billion. With the exception of some reduced rate service areas, users have been paying DRC of $0.007 per kilowatt hour since 2002. More information about the DRC can be found at http://www.fin.gov.on.ca/en/guides/drc/101.html


Should you have any questions or require assistance exploring the DRC exemption application process, please do not hesitate to contact your ECNG Account Executive.