DRC Guide 104
Published: July 2008
Content last reviewed: January 2010
ISBN: 0-7794-2874-9 (Print)
This guide will assist collectors, self-generating users, Indian Bands, band councils and international organizations with the completion, issuance and acceptance of Exemption Certificates. See Guide 108 Status Indians, Indian Bands and Band Councils and Guide 109 Foreign Representatives and Officials for more details. This guide replaces Guide 104 published in April 2002.
Persons entitled to purchase or acquire electricity exempt of the Debt Retirement Charge (DRC) are required to provide their supplier with a properly completed Exemption Certificate.
Exemption Certificates remain in effect until:
An Exemption Certificate [PDF - 228 KB] may be issued to a collector by:
Self-generating users may issue an Exemption Certificate to the Independent Electricity Market Operator (IMO) if the self-generating user:
Retailers are not required to issue an exemption certificate:
The IMO will collect DRC from retailers on electricity allocated to a retailer under a physical allocation agreement. Retailers will recover the DRC paid to the IMO from their customers, however, they are not to identify the recovered amount as DRC on the invoice to their customer.
A properly completed exemption certificate must include the:
Supplies of Exemption Certificate forms are not provided by the Ministry of Finance. You may use photocopies or reproductions of the Exemption Certificate form [PDF - 228 KB].
Every collector is required to levy and collect the DRC unless they are provided with a properly completed Exemption Certificate or sell to Status Indians or certain individuals in the diplomatic community who may be entitled to an exemption from DRC. See Guide 108 Status Indians, Indian Bands and Band Councils and Guide 109 Foreign Representatives and Officials for more details.
All Exemption Certificates provided by customers must be kept on file to support transactions where no DRC was collected. Do not destroy Exemption Certificates unless you receive written permission from the Ministry of Finance.
If you misuse or make false statements on an Exemption Certificate, you can, upon conviction, be fined not less than $1,000 and an amount up to twice the DRC owed, or imprisoned for up to two years, or both.
DRC is governed by Part V.I of the Electricity Act, 1998 and Regulations 493/01 (Rates and Exemptions), 494/01 (Administration) and 160/99 (Definitions and Exemptions). Consult these documents for detailed information.
The information contained in this publication is only a guideline. For more information, please contact the Ontario Ministry of Finance at 1 866 ONT-TAXS (1 866 668-8297) or visit our website at ontario.ca/finance.