In Ontario, there are three rate options that residential and small business customers can choose from. Time-of-use rates, Tiered rates and Ultra-low overnight (ULO) rates. Time-of-use rates is the default rate.
The Ontario Energy Board (OEB) sets these rates once per year. Rates take effect on November 1 of each year.
Time-of-use (TOU) Pricing:
Under the time-of-use pricing, you pay a different rate for electricity depending on the time of day and day of the week you consume it. TOU has three periods: on-peak (when energy demand and cost is high), mid-peak (when energy demand and cost is moderate) and off-peak (when energy demand and cost is low).
TOU periods (hours) are different in the summer than they are in the winter.
Tiered Pricing:
Customers under tiered rates pay one set rate for the electricity they consume up to a predetermined kilowatt-hour (kWh) threshold each month. Once customers exceed the monthly threshold, they are billed at a higher rate per kWh for all additional electricity consumed in that month.
The threshold changes with the seasons for residential customers:
- In the summer period (May 1 - October 31), the Tier threshold for residential customers is 600 kWh.
- In the winter period (November 1 - April 30) the Tier threshold for residential customers is 1000 kWh.
The threshold for small business customers is 750 kWh all year round.
Ultra-Low Overnight (ULO) Pricing:
Similar to TOU rates, with ULO, the price depends on when you use electricity. ULO has an additional price period, a different set of rates and offers an ultra-low overnight rate in exchange for a higher on-peak rate.
With ULO pricing you are charged according to the day of the week and time of day that you use electricity. There are four price periods: on-peak, mid-peak, weekend off-peak, and ultra-low-overnight. The ULO plan sets a very low price for the overnight period, however, the on-peak price is significantly higher.
The ULO periods (hours) are the same in the summer as they are in the winter.
To learn more about switching your rate plan, visit
https://www.oeb.ca/rates-and-your-bill/electricity-rates/choosing-your-electricity-price-plan.