DRC Guide 108
Published: July 2009
Content last reviewed: October 2015
This guide will explain how Status Indians, Indian bands and band councils may claim an exemption from the Debt Retirement Charge (DRC) on electricity consumed on a reserve.
A reserve is defined under the federal statute, the Indian Act (Canada). This definition is used for DRC purposes, and also includes a settlement located on Crown land in which Status Indian residents are treated by the Department of Indian Affairs and Northern Development (Canada) in the same manner as Status Indians living on a reserve.
Status Indians can purchase electricity for consumption on a reserve exempt from DRC.
Indian bands and band councils also qualify for an exemption from DRC on electricity purchased and consumed on a reserve.
Status Indians living off-reserve are required to pay DRC on their consumption of electricity. Indian bands and band councils purchasing electricity for consumption off-reserve must also pay DRC.
Electricity sold on a reserve to anyone other than Status Indians, Indian bands and band councils is subject to DRC. DRC exemptions for Status Indians, Indian bands and band councils are not available to corporations owned by Status Indians, Indian bands, and band councils. Corporations are required to pay DRC on their consumption of electricity.
Status Indians should present their federal "Certificate of Indian Status" identification card to their electricity supplier, or provide the following information from their card to their electricity supplier:
Indian bands and band councils must issue a properly completed Exemption Certificate to their supplier when claiming the exemption. For more information on providing an exemption certificate, see Guide 104 - Exemption Certificates.
Collectors will obtain the following information from exempt users:
If collectors do not receive the necessary documentation, they are required to charge and collect DRC.
Status Indians, Indian bands and band councils who paid DRC in error may request a refund of DRC directly from the collector.
Collectors may refund DRC if:
Status Indians, Indian bands and band councils who have paid DRC in error and who cannot obtain a refund from their distributor or retailer may apply to the Ministry of Finance for a refund within four years of the date the DRC was paid in error.
You may download the Application for Refund of the Debt Retirement Charge [PDF - 111 KB].
DRC is governed by Part V.I of the Electricity Act, 1998 and it's Regulations 493/01 (Rates and Exemptions), 494/01 (Administration), 160/99 (Definitions and Exemptions); and Regulation 541/05 (Net Metering) under the Ontario Energy Board Act, 1998.
The information contained in this guide is not intended to replace the legislation.
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