Electricity price plans
Learn about the different types of electricity price plans you can choose from, including time-of-use (TOU), tiered and ultra-low overnight prices.
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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:
- small businesses
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:
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.
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.
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.
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
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.
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
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.
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:
- weekend off-peak
Cost is lowest during the ULO period:
- every day between 11 p.m. to 7 a.m.
Cost for electricity is highest during the on-peak period:
- weekdays between 4 p.m. to 9 p.m.
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.
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.