ontario electricity rate

Electricity rates are about to change in Ontario and here are the details

Ontario just announced a new change to electricity prices that could save customers a pretty penny, especially night owls and electric car owners.

The province announced a new "ultra-low overnight" price plan on Tuesday, which it claims will "provide consumers with more ways to keep costs down, save money and take control of their energy bills" once in effect on May 1.

Customers of local providers, including Toronto Hydro, London Hydro, Centre Wellington Hydro, Hearst Power, Renfrew Hydro, Wasaga Distribution, and Sioux Lookout Hydro, will be able opt-in for the ultra-low rate next month, which the province touts can save customers up to $90 per year.

"Our government has put families back in control of their energy bills, and the new Ultra-Low Overnight price plan will give families and small businesses who use more electricity overnight more ways to save," said Todd Smith, Minister of Energy.

"Starting May 1, customers can opt-in to the new ultra-low electricity price plan which could save them up to $90 per year, while at the same time making our grid more efficient, helping to reduce costs for all ratepayers."

Customers will now have three options for electricity plans, adding to the existing Time-of-Use (TOU) and Tiered plans offered in Ontario.

The plan caters to people using the bulk of their electricity during off-peak hours, like shift workers or customers that rely on overnight electrical vehicle charging.

Its rate of 2.4 cents per kilowatt-hour (kWh) is 67 per cent lower than the current off-peak rate, though these savings come with much higher rates for electricity use during peak periods of demand.

As cheap as those off-peak prices may be, customers would pay a whopping ten times that rate during on-peak periods of weekdays from 4 p.m. to 9 p.m. Rates include 7.4 cents per kWh during weekend off-peak hours and 10.2 cents per kWh for mid-peak usage hours.

Savings for customers are just one side of the equation, and by shifting demand to off-peak hours, the province projects potential capacity cost savings for the electricity system of up to $5.7 million per year province-wide.

The province's latest energy price cut comes just a few months after a broader off-peak electricity price decrease that went into effect on November 1.

According to the Ontario Energy Board, that decrease averaged out to a savings of almost $14 per month per customer.

Lead photo by

Jack Landau

Latest Videos

Latest Videos

Join the conversation Load comments

Latest in City

Toronto is getting a unique triangular park as a part of community revitalization

Ferris wheel at Toronto's famous 'dead mall' jams and traps riders

Toronto is growing way too fast to keep up with power demands

Feds lays out plan with aim to solve Canada's national housing crisis

Toronto creeks are being used for illegal dumping of chemicals and car parts

Popular Toronto destination becoming test hub for tiny three-wheeled cars

Creepy pinecone-shaped cocoons are invading Ontario and you should drown them

People warn of common One Fare transit mistake that could get you fined in the GTA