Beginning May 1st, Ontario residents will be able to take advantage of a new “ultra-low” overnight electricity rate of 2.4 cents per kilowatt-hour between the hours of 11 p.m. and 7 a.m. This rate is 67% lower than the current off-peak rate and will be offered as an opt-in option. However, customers who choose this plan should be aware that it will result in a higher on-peak rate. Toronto Hydro, London Hydro, Centre Wellington Hydro, Hearst Power, Renfrew Hydro, Wasaga Distribution, and Sioux Lookout Hydro will offer this plan by May, and it will be expanded to all local distribution companies by November 1st.
Ontarians now have three different electricity plans to choose from, with the addition of this “ultra-low” pricing. The Time of Use plan is the most common, with off-peak, mid-peak, and on-peak hours. Residential customers, businesses, and farms are eligible for these rates, which will take effect on May 1st. The off-peak rate will be 7.4 cents per kilowatt-hour on weekdays between 7 p.m. and 7 a.m., and on weekends and holidays. The mid-peak rate will be 10.2 cents per kilowatt-hour on weekdays between 7 a.m. and 11 a.m., and between 5 p.m. and 7 p.m. The on-peak rate will be 15.1 cents per kilowatt-hour on weekdays between 11 a.m. and 5 p.m.
The Tiered Rates plan allows customers to receive a standard rate based on their electricity usage, with various thresholds per tier. If a household exceeds that threshold, a higher price applies. This option may be beneficial for retirees who are home often during the day or those who use less electricity overall. The tiers will change depending on the season, and residential households that use 600 kilowatts of electricity per month and non-residential businesses that use 750 kilowatts per month will pay 8.7 cents per kilowatt-hour. Residences and businesses that use more than that will pay a flat rate of 10.3 cents per kilowatt-hour.
Finally, customers can opt-in to the Ultra-Low Overnight Rates plan if they use most of their electricity overnight. In addition to the 2.4 cents per kilowatt-hour rate between 11 p.m. and 7 a.m., there is a mid-peak rate of 10.2 cents per kilowatt-hour on weekdays between 7 a.m. and 4 p.m. and between 9 p.m. and 11 p.m. and an on-peak rate of 24 cents per kilowatt-hour on weekdays between 4 p.m. and 9 p.m. Weekends and holidays between 7 a.m. and 11 p.m. will have a rate of 7.4 cents per kilowatt-hour.
You are welcome to The Toronto House.
