Living in Ontario and concerned about your energy bills? You’re in the right place. This guide will explain everything you need about time-of-use (TOU) electricity rates.
We’ll cover the best times to use electricity, provide a rate chart, and share tips on using this information to save energy costs.
Understanding Ontario’s Electricity Pricing Structure
Ontario’s electricity pricing structure is designed to give you the power to choose a billing plan that fits your lifestyle and electricity usage. Here are your options:
- Time-of-Use (TOU) Rates: Prices change based on the time of day (Ideal for shifting use to cheaper off-peak hours).
- Tiered Rates: Two rates based on your usage level (Good for consistent electricity consumption).
- Ultra-Low Overnight (ULO) Rates: Extremely low rates overnight (Best for night-time high energy users, like EV charging).
You can switch between these plans anytime to suit your changing needs, including returning to a previous pricing model. Contact your local distribution company (LDC) to change your plan and submit an election form.
Time of Use Electricity in Ontario
Time-of-Use (TOU) rates are a way to bill electricity that varies the price based on the time of day. In this pricing model, the cost of electricity changes at different times of the day, during the week, and across seasons.
Peak Hours vs. Off-Peak Hours
TOU rates are divided into three periods:
- Off-peak: Lowest demand (Two-thirds of household use is off-peak)
- Mid-peak: Moderate demand (Daytime but not the busiest hours)
- On-peak: Highest demand (When people use personal electronics, ACs, heaters, etc.)
Off-peak
Electricity demand hits its lowest during off-peak times:
- Weekends and statutory holidays are all-day off-peak.
- Summer and winter nights from 7 p.m. to 7 a.m.
Mid-peak
Demand is moderate during mid-peak periods:
- Summer weekdays from 7 a.m. to 11 a.m. and 5 p.m. to 7 p.m.
- Winter weekdays from 11 a.m. to 5 p.m.
On-peak
Demand peaks during on-peak periods:
- Summer weekdays from 11 a.m. to 5 p.m.
- Winter weekdays from 7 a.m. to 11 a.m. and 5 p.m. to 7 p.m.
The TOU periods adjust in winter and summer, reflecting Ontario’s changing electricity consumption patterns.
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Ontario Time-of-Use Rate Chart
Eligibility
Under the Regulated Price Plan (RPP), electricity customers in Ontario have the option to choose between TOU and tiered pricing plans, including:
- Households
- Small businesses
- Farms
However, there are a few exceptions where customers may not be able to switch between rate plans:
- Customers without access to the telecommunications infrastructure necessary to support smart meters cannot switch due to technical limitations.
- Customers who opted out of the RPP price structure by signing a contract with an electricity retailer are bound by contract terms and cannot switch.
- Bulk-metered customers, such as residents in condominiums or rental buildings where electricity is not metered individually, are also ineligible to switch between these plans.
Electricity Charges in Ontario
The Time-of-Use (TOU), TOU, Ultra-Low Overnight (ULO), and Tiered prices electricity rates listed are set by the Ontario Energy Board (OEB) for the period from November 1, 2023, to April 30, 2024.
Ontario Time-of-Use (TOU) Electricity Rates
TOU Price Periods | Winter Schedule (Nov 1 - Apr 30) | Summer Schedule (May 1 - Oct 31) | TOU Prices (¢/kWh) | Energy Saving Tips |
---|---|---|---|---|
Off-Peak | Weekdays 7 p.m. – 7 a.m., Weekends and holidays all-day | Weekdays 7 p.m. – 7 a.m., Weekends and holidays all-day | 8.7 | Use major appliances like dishwashers and dryers |
Mid-Peak | Weekdays 11 a.m. – 5 p.m. | Weekdays 7 a.m. – 11 a.m. and 5 p.m. – 7 p.m. | 12.2 | Plan energy-intensive activities around these hours |
On-Peak | Weekdays 7 a.m. – 11 a.m. and 5 p.m. – 7 p.m. | Weekdays 11 a.m. – 5 p.m. | 18.2 | Minimize use of large appliances and HVAC |
Ultra-Low Overnight (ULO)
ULO Price Periods | Schedule | ULO Prices (¢/kWh) |
---|---|---|
Ultra-Low Overnight | Every day 11 p.m. - 7 a.m. | 2.8 |
Weekend Off-Peak | Weekends and holidays 7 a.m. – 11 p.m. | 8.7 |
Mid-Peak | Weekdays 7 a.m. – 4 p.m. and 9 p.m. to 11 p.m. | 12.2 |
On-Peak | Weekdays 4 p.m. – 9 p.m. | 28.6 |
Tiered
Tier Thresholds | Winter Schedule (Nov 1 - Apr 30) | Summer Schedule (May 1 - Oct 31) | Tiered Prices (¢/kWh) |
---|---|---|---|
Tier 1 | Residential – first 1,000 kWh/month Non-residential – first 750 kWh/month | Residential – first 600 kWh/month Non-residential – first 750 kWh/month | 10.3 |
Tier 2 | Residential – above 1,000 kWh/month Non-residential – above 750 kWh/month | Residential – above 600 kWh/month Non-residential – above 750 kWh/month | 12.5 |
Fewer than 1 in 10 customers in Ontario purchase their electricity directly from an electricity retailer. If you’re considering signing an energy contract with a retailer, remember that the OEB does not regulate the price you’ll pay according to that contract.
Here are the reasons behind this variation:
- Demand Management: TOU rates vary to balance the electricity grid’s demand. By charging more during peak times, there’s a natural incentive for people to reduce consumption when the grid is most stressed, helping to avoid overloads.
- Grid Stability: High demand periods risk the grid’s stability. If everyone uses electricity simultaneously, especially during mornings and evenings, it can strain the system. Managing this demand is crucial to preventing outages and ensuring a reliable electricity supply.
- Cost Efficiency: TOU rates help optimize the use of existing infrastructure without the need for costly infrastructure expansions.
Off-Peak Hours for Laundry in Ontario
Based on the Time-of-Use (TOU) pricing in Ontario, the off-peak hours when electricity rates are lowest and ideal for running laundry are:
- Weekdays from 7 p.m. to 7 a.m. the following morning
- All day on weekends and statutory holidays
Factors Influencing Ontario’s Electricity Demand
Here are the key factors that play a significant role in shaping Ontario’s electricity demand:
- Weather Conditions: Extreme hot and cold temperatures significantly increase electricity demand due to heating and cooling needs. Mild weather, conversely, tends to lower demand.
- Population Growth: As Ontario’s population grows, so does the electricity demand. From 2000 to 2022, Ontario’s population grew by approximately 29.4%. New homes, businesses, and public services contribute to increased energy consumption.
- Conservation Programs: Ontario has seen a significant decrease in average daily electricity demand between 2002 and 2016, largely attributed to effective conservation initiatives, such as the Independent Electricity System Operator’s (IESO) Save on Energy programs.
- Advancements in Lighting: Light bulbs, which traditionally accounted for 15% to 20% of global electricity consumption, have seen remarkable improvements in energy efficiency. LED (Light Emitting Diode) and CFL (Compact Fluorescent Lamp) technologies now allow for the same amount of light using up to 85% less energy.
- Time of Day and Year: Daily routines and seasonal activities influence when and how much electricity is used. Mornings and evenings see higher demand due to residential use, while industrial and commercial consumption patterns may vary. Seasonally, winter and summer typically experience peaks in demand due to heating and cooling needs.
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How to Know if TOU Electricity Pricing is Right for You
Here’s how to tell if TOU pricing could be beneficial for you:
- You work outside the home during the day and do your dishes and laundry in the evening.
- You charge an electric vehicle (EV) overnight.
- You have flexible work hours or work from home.
- You use smart home devices to schedule energy usage.
- You’re home during the day but use minimal electricity.
- You enjoy late-night hobbies or activities.
- You have energy storage solutions.
The Impact of Time-of-Use Rates on Consumers
Here’s how TOU rates affect consumers:
Promotes Energy Conservation
Findings from a study indicated that TOU rates successfully led to a decrease in electricity usage during these peak hours across the province. Specifically, there was a 3.26% reduction in usage during the summer peak in the pre-2012 period.
Cost Savings
Consumers who adapt their electricity use to align with off-peak hours can see significant savings on their energy bills.
Technology and Smart Home Devices
The impact of TOU rates has also spurred interest in smart home technologies, such as programmable thermostats and smart appliances, that can be scheduled to operate during off-peak hours.
Reducing Energy Consumption During Peak Hours
Here’s how you can adjust your habits and reduce your overall energy consumption, especially during costly peak hours:
- Laundry: Do your laundry on weekends or start the washing machine after 7 p.m. on weekdays as it the best time of day to use electricity in Ontario.
- Dishwashing: Load your dishwasher throughout the day, but wait to run it until it’s off-peak.
- Charging Electric Vehicles (EVs): Charge your EV overnight when rates are lowest.
- Pre-cooking Meals: Use appliances like slow cookers or prepare meals that require oven use during off-peak hours, then reheat quickly during peak times if needed.
- Adjust Your Thermostat: During summer, pre-cool your home in the morning and use fans to circulate air in the afternoon. Preheat in the early morning in winter and add layers to keep warm in the evening.
- Minimize Appliance Use: Avoid using major appliances, such as furnaces, air conditioners, and dryers, during peak hours. If you must use them, try to use the energy-saving settings or run them at half-load.
Conclusion
Smart energy use and TOU rates can really cut down your bills in Ontario. By shifting your energy use to off-peak hours and implementing energy-saving practices, you can enjoy lower electricity bills while contributing to a more sustainable and efficient energy system.