Overview

Most electricity customers in Ontario can choose how their electricity is billed. You have the flexibility to choose a pricing plan that best suits your lifestyle and individual electricity use.

Eligible customers can choose between:

  • time-of-use (TOU) rates
  • tiered rates
  • ultra-low overnight (ULO) rates

You can request to switch between TOU, tiered and ULO pricing at any time, including switching back to your previous pricing model if you wish. Contact your local distribution company (LDC) to apply to change your electricity rate plan, by completing and submitting an election form.

Who is eligible

Regulated Price Plan (RPP) electricity customers can choose either time-of-use (TOU) pricing and tiered pricing plans.

RPP customers include most:

  • households
  • small businesses
  • farms

Starting May 1, 2023, local distribution companies can begin offering ultra-low overnight pricing to their RPP customers. All local distribution companies will offer this pricing by November 1, 2023.

Who is not eligible

A small number of customers cannot switch between rate plans. These include customers who:

  • are not reached by the telecommunications infrastructure needed to support smart meters
  • chose to leave the RPP price structure, generally through signing a contract with an electricity retailer
  • are bulk metered, for example residents living in a condominium building or rental building who are not individually metered

Time-of-use (TOU) rates

The time-of-use (TOU) rate is the default electricity rate for most homes and businesses. TOU rates vary according to the time of day and are divided into three rate periods:

  • off-peak
  • mid-peak
  • on-peak

Off-peak (green)

Demand for electricity is lowest during off-peak periods:

  • all-day on weekends and statutory holidays
  • summer and winter nights between 7 p.m. and 7 a.m.

Mid-peak (yellow)

Demand is moderate during mid-peak periods:

  • summer weekdays between 7 a.m. to 11 a.m. and 5 p.m. to 7 p.m.
  • winter weekdays between 11 a.m. to 5 p.m.

On-peak (red)

Demand is highest during on-peak period:

  • summer weekdays between 11 a.m. to 5 p.m.
  • winter weekdays between 7 a.m. to 11 a.m. and 5 p.m. to 7 p.m.

TOU periods are adjusted by time of year in winter and summer to reflect the changing pattern of Ontario’s electricity use.

Image
Time-of-use chart

See a sample electricity bill with TOU rates.

See the current TOU rate prices.

How to know if TOU pricing is right for you

If you use most of your electricity during off-peak hours (evenings and weekends), and have higher electricity demands, time-of-use may be your preferred pricing plan.

Time-of-use pricing may be right for you if, for example:

  • you work outside the home during the day and do your dishes and laundry in the evening
  • you have a large family or many people in your household, with higher electricity usage
  • you work shift work, and use most of your electricity in the evenings
Time-of-use Illustration of a home at night

Tiered rates

With tiered rates, electricity prices remain constant during the day, but shift if more than a certain set amount of electricity is used during the course of a month.

Tiered rates have a lower price for electricity consumption below a set amount used in a month, and another higher rate for electricity consumption above that set amount of electricity used.

See the current tiered rate prices.

Residential customers

Tier 1 rates

Residential tiered customers pay the lower tier 1 rate for electricity used:

  • up to 1,000 kWh/month in the winter
  • up to 600 kWh/month in the summer

Tier 2 rates

The higher tier 2 rate is charged for electricity used:

  • over 1,000 kWh/month in the winter
  • over 600 kWh/month in the summer

Non-residential customers

Under tiered rate pricing, non-residential customers are charged the tier 1 rate for electricity use up to 750 kWh/month for all seasons.

The higher tier 2 rate is charged for all electricity used over 750 kWh/month for all seasons.

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Tiered rate pricing chart

See a sample electricity bill with tiered rates.

How to know if tiered pricing is right for you

If you use most of your electricity during weekday hours, and do not exceed kWh per month listed for tier 1 or tier 2 rates, tiered pricing may be a better option.

Tiered pricing may be best for you, if for example:

  • you are retired and spend a lot of time at home and do most of your laundry and cooking during the day
  • you live alone or in a smaller property and thus have lower electricity usage
  • you spend very little time at home, and therefore use less electricity
Illustration of a home during the daytime

Contact your local distribution company (LDC) for more information or use the Ontario Energy Board’s Bill Calculator to help determine which rate plan is best for you.

Ultra-low overnight (ULO) rates


The ultra-low overnight (ULO) price plan follows the TOU pricing structure, but also has:

  • an overnight rate lower than the TOU off-peak rate
  • a higher on-peak rate

ULO rates vary depending on the time of day. The rates are divided into four rate periods:

  • ULO
  • on-peak
  • mid-peak
  • weekend off-peak

ULO (blue)


Cost is lowest during the ULO period:

  • every day between 11 p.m. to 7 a.m.

On-peak (purple)


Cost for electricity is highest during the on-peak period:

  • weekdays between 4 p.m. to 9 p.m.

Mid-peak (yellow)


Cost is moderate during mid-peak periods:

  • weekdays between 7 a.m. to 4 p.m. and 9 p.m. to 11 p.m.

Weekend off-peak (green)


Cost is low-moderate during weekend off-peak period:

  • weekends and statutory holidays between 7 a.m. to 11 p.m.
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Ultra-low overnight chart

See a sample electricity bill with ULO rates.

See the current ULO rate prices.

How to know if ULO pricing is right for you

If you use most of your electricity during overnight hours, and have higher electricity demand, ULO pricing may be a better option.

ULO pricing may be best for you, if for example:

  • you have an electric vehicle (EV) that you charge overnight
  • you use most of your electricity overnight
Image
Illustration of ultra-low overnight

Contact your local distribution company for more information or use the Ontario Energy Board’s Bill Calculator to help decide which rate plan is best for you.