Spring and Fall, not only do we change our clocks, but it’s also when the Province flips between summer and winter electricity pricing schedules! This Spring, the Ontario government is launching a new Ultra-Low Overnight price plan as part of its plan to provide consumers with more ways to keep costs down, save money and take control of their energy bills. Starting May 1, 2023, customers can opt-in to this new optional electricity price plan.
The new electricity pricing structure is a third option for electricity customers, in addition to the existing Time-of-Use (TOU) and Tiered plans. Customers that use more electricity at night, including shift workers and those that electrically heat their home or charge their electric vehicle, could save up to $90 per year by shifting demand to the ultra-low overnight rate period.
The new ultra-low overnight rate, set by the Ontario Energy Board, will be 2.4 cents per kilowatt-hour (kWh), which is 67 per cent lower than the current off-peak rate, in exchange for a higher on-peak rate.
- The new optional Ultra-Low Overnight price plan provides:
- Ultra-low overnight rate of 2.4 cents per kWh: everyday 11 p.m.-7 a.m.
- Mid-peak rates of 10.2 cents per kWh: weekdays 7 a.m.-4 p.m. and 9 p.m.-11 p.m.
- On-peak rates of 24.0 cents per kWh: weekdays 4 p.m.-9 p.m.
- Weekend off-peak rates of 7.4 cents per kWh: weekends and statutory holidays 7 a.m.-11 p.m.
Interestingly, Time-of-Use plans were intended to shift consumption from high demand periods to low demand periods. In the new Ultra-Low plan, peak rates occur between 4 p.m. to 9 p.m. at 24 cents per kWh, while in the existing Time-of-Use plan peak hours, during the summer, occur between 11a.m. to 5 p.m. at 15.1 cents per kWh. It leaves one wondering if these pricing plans have any real impact on consumer behaviour or reducing peak energy demands!
Toronto Hydro Online Tools
Have you ever explored the data available on your Toronto Hydro account? You can discover some interesting insights into your electricity usage and see a cost comparison of Time-of-Use vs Tiered plans. Given the increased levels of working from home, the Time-of-Use plan may no longer be your best option. You might be surprised at the possible savings and switching between plans is super easy!
Some items to consider:
- How well do you shift electricity usage to off peak hours?
- Do you work from home?
- Do you have an electric vehicle?
- How much electricity do you use each month?
While it is possible to do certain activities during off-peak times, if you are at home during the day and have a fairly low monthly consumption, you may find Time-of-Use pricing is more expensive.
The figures below show usage over time and a comparison of the pricing plans. In this real-life example, the tiered plan was almost $5 cheaper than Time-of-Use. (Pricing reflects electricity costs, delivery is an additional cost and does NOT vary according to your price plan.)
Final Tip: Consider enrolling in Toronto Hydro’s Equal Payment Plan to smooth out your monthly bill.
