Next Generation Rate Framework

The OEB is moving forward with an integrated approach to work related to utility remuneration. The impetus for this work is to ensure continuous improvement in the OEB’s performance-based approach to utility remuneration so that the rate-setting framework continues to drive outcomes consumers value and is fit for purpose in a changing energy sector.

The new policy consultation will bring together the following OEB initiatives under a new comprehensive policy consultation known as the Next Generation Rate Framework:

• Advancing Performance-based Rate Regulation

• Spending Pattern Analysis

• Total Cost Benchmarking

• Evaluation of Incremental Capital Module (ICM) Policy

The OEB is adopting this integrated approach to utility remuneration in response to stakeholders' feedback that these topics should be considered in a holistic fashion. This work will also provide distributors with a clear and comprehensive understanding of how they will be remunerated as they build out their systems for electrification and economic growth.