DRC Guide 103
Published: July 2008
Content last reviewed: October 2015
Starting May 1, 2002, all distributors and retailers of electricity must register with the Debt Retirement Charge (DRC) Program before selling or supplying electricity.
Collectors are required to charge and collect DRC from customers at the correct rate. Please refer to Guide 101 - Debt Retirement Charge - General Information for DRC rates.
When calculating DRC, round the amount to the nearest whole cent. If the calculation results in a half a cent or more, round up to the next cent.
On each invoice, separate the amount of DRC charged and describe this charge as the 'Debt Retirement Charge' or 'DRC'. Include the following statement when charging DRC: 'The debt retirement charge pays down the debt of the former Ontario Hydro'.
The Ministry of Energy has additional invoicing requirements that are effective January 1, 2016. Contact the Ministry of Energy at firstname.lastname@example.org for further information.
You must keep Exemption Certificates, as well as documentation provided to prove that a person is not required to pay the DRC.
Please refer to Guide 104 - Exemption Certificates, Guide 108 - Status Indians, Indian Bands and Band Councils, Guide 110 - Debt Retirement Charge Exemption for Eligible Residential Units and Guide 101 - Debt Retirement Charge - General Information.
Collectors are required to meter electricity generated for own use or purchased exempt from DRC for own use.
There may be circumstances where installing a meter to measure electricity consumption is not feasible. The Ministry of Finance may authorize a collector to estimate the consumption of electricity rather than install a meter. Please contact the Debt Retirement Charge Program at the numbers listed at the end of this guide for more information.
When completing DRC returns for the period covered by the return, be sure to include:
You are required to file completed returns and remit payment by cheque or money order payable to the Ontario Electricity Financial Corporation (OEFC) by the due date shown on the return. The cheque should be drawn in Canadian funds on a Canadian financial institution.
Returns must be filed even where there is no activity or DRC to report. If you do not receive a return, you are still required to provide the return information to the Ministry of Finance, with payment, by the regular due date.
You should notify the Ministry of Finance of any changes such as:
Directors of a corporation may be held jointly and severally liable for DRC owing if the corporation:
You must keep books and records with enough information to support the amount of DRC charged, collected, payable and remitted.
You can keep records manually or electronically. Electronic records must be in a format that will provide an exact copy of the original.Examples of books and records that you should keep include:
You may refund DRC collected if:
The refund must be made within four years after the person paid it.
If you refund DRC, you may adjust your next DRC remittance or apply for a refund from the Ministry of Finance. Adjustments or applications for refunds to the ministry must be made within four years from the date you made the refund.
Download the Application for Refund of the Debt Retirement Charge [PDF - 111 KB], or contact the Debt Retirement Charge Program at the numbers listed at the end of this guide.
If you disagree with a DRC assessment, or a disallowance of a DRC refund, you may file a Notice of Objection with the Ministry of Finance's Advisory, Objections, Appeals and Services Branch within 180 days from the mailing date of the Notice of Assessment or Statement of Disallowance. To obtain a Notice of Objection form:
If you are not satisfied with the ministry's decision on the Notice of Objection, you may file a Notice of Appeal. The Notice of Appeal must be filed with the Superior Court of Justice and a copy of the Notice of Appeal served on the Minister of Finance within 90 days from the date the ministry's decision on the Notice of Objection was mailed.
To obtain a written interpretation on a specific situation not addressed in this guide, please send your request in writing to:
Ministry of Finance
Advisory, Objections, Appeals and Services Branch
33 King Street West
Oshawa ON L1H 8H5
The information provided in this guide is not intended to replace the legislation.
Electricity Act, 1998, Part V.1 (Debt Retirement Charge)
Ontario Energy Board Act, 1998