Taxes

The Electricity Act, 1998 imposes a charge, known as the Debt Retirement Charge (DRC) which is payable on electricity consumed in Ontario.

All revenues from DRC will be used exclusively to pay down the residual stranded debt of the former Ontario Hydro.

Who Should Be Registered

All distributors and retailers required to be licensed by the Ontario Energy Board (OEB) are required to register as DRC collectors.

You may also be required to register if you:

• sell or supply electricity to a user, or
• consume or supply self-generated electricity.

DRC collectors starting business after May 1, 2002 are required to register with the DRC program before selling or supplying electricity.

Self-generating users who will self-assess DRC are also required to register. This includes generators who generate electricity primarily for sale to another user and also consume self-generated electricity.

Further information is available in Guide 101 - General Information and in the Registration Package for the DRC Program.

Reporting & Remitting DRC

Distributors, retailers and self-generating users are required to file their return on or before the 18th of the month following the end of a filing period. If the due date falls on a weekend or holiday, the return is due the next working day. Filing periods could be monthly, quarterly, semi-annually or annually. How often you file is based on the amount of DRC remitted.