Ottawa households are about to see a familiar line on their hydro bill creep upward. Hydro Ottawa has been cleared to raise rates by an average of $5.87 per month in 2026, after Ontario's independent energy regulator signed off on the increase — but only after turning down the utility's request for a steeper, multi-year hike.
What was approved
The Ontario Energy Board (OEB), the province's independent regulator, reviews and approves what local utilities like Hydro Ottawa are allowed to charge. After weighing Hydro Ottawa's application, the board gave the green light to a 2026 increase that works out to roughly $5.87 a month for the average residential customer.
That's the part of your bill tied to Hydro Ottawa's own costs — delivering power, maintaining poles and wires, upgrading equipment and keeping the lights on across the city. It does not include the separate charges for the electricity itself, which are set provincially.
What the board rejected
Hydro Ottawa had asked for more. The utility pitched a larger increase spread over a five-year period, arguing it needed the revenue to fund infrastructure work and keep pace with a growing city. The OEB declined to approve that bigger, longer-term plan, instead limiting the utility to the smaller 2026 bump.
For regulators, the decision is a balancing act: utilities need enough money to maintain a reliable grid, but the board's job is also to protect ratepayers from increases it judges to be more than necessary. In this case, the OEB landed on the side of a more modest increase than the one Hydro Ottawa wanted.
Why it matters for Ottawa
For Ottawa residents already feeling the squeeze of higher costs on nearly everything, even a few extra dollars a month adds up over a year — about $70 annually for the typical household. With Ottawa winters driving up heating and electricity use, the rate hike will be most noticeable in the coldest months when consumption peaks.
The outcome is also a reminder that hydro rates aren't set in a vacuum. Because Hydro Ottawa is a regulated utility, it can't simply raise prices on its own — every increase has to clear the OEB, which scrutinizes the request and can, as it did here, push back.
What to watch next
Hydro Ottawa serves roughly 360,000 customers across the city, so decisions like this one ripple through a huge share of local households and businesses. The rejection of the larger five-year plan means the utility may return to the regulator down the road to make its case again for additional funding.
In the meantime, Ottawa customers can expect the approved increase to show up on bills in 2026. Residents looking to soften the blow can review their usage patterns, take advantage of time-of-use pricing by shifting heavy electricity use to off-peak hours, and check Hydro Ottawa's website for any conservation programs or rebates.
Source: CBC News Ottawa.
