The Ontario Energy Board (OEB) has proposed a new ultra-low overnight Time-of-Use (ULO) electricity price plan that could offer significant savings to Ontario residents. One group of consumers that could benefit greatly from this plan is electric vehicle (EV) owners. With the proposed ultra-low overnight TOU plan, they could take advantage of lower rates and save money on their electricity bills.
Under the proposed plan, the on-peak rate would be around 10 times the ultra-low overnight rate. The mid-peak rate would be roughly equal to the standard TOU mid-peak price, while the weekend off-peak price would be similar to the standard TOU off-peak price. The new price could encourage more people to switch to electric vehicles, reduce greenhouse gas emissions, and improve air quality. Consumers will also have more control over their energy usage through better saving options on their bills.
Since November 1, 2020, families, small businesses, and farms in Ontario have had a choice between two rate plans – Time-of-Use or Tiered. The proposed ultra-low overnight TOU electricity price plan would provide an additional choice for consumers who want to save money by using more electricity during off-peak hours.
Time-of-Use (TOU)
Customers who can shift their electricity usage to off-peak hours when prices are lower may benefit from this rate plan. For example, people who work during the day and are at home in the evening may choose to do laundry or run their dishwasher during off-peak hours when rates are lower.
| TOU Price Periods | Winter (November 1 – April 30) | Summer (May 1 – October 31) | TOU Prices (¢/kWh) |
| Off-Peak | Weekdays 7pm – 7am Weekends and holidays all day | Weekdays 7pm – 7am Weekends and holidays all day | 7.4 |
| Mid-Peak | Weekdays 11 am – 5 pm | Weekdays 7am – 11am and 5 pm. – 7 pm. | 10.2 |
| On-Peak | Weekdays 7am – 11am and 5 pm – 7 pm | Weekdays 11 am – 5 pm | 15.1 |
Tiered:
Customers who prefer a more consistent and predictable billing structure may prefer the tiered rate plan. They may not want to worry about adjusting their habits to take advantage of different rate periods during the day or night. Customers who have a consistent level of electricity usage throughout the month, regardless of the time of day, may benefit from this rate plan.
| Tiered | Winter (November 1 – April 30) | Summer (May 1 – October 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 | 8.7 |
| Tier 2 | Residential – for electricity used above 1,000 kWh/month Non-residential – for electricity used above 750 kWh/month | Residential – for electricity used above 600 kWh/month Non-residential – for electricity used above 750 kWh/month | 10.3 |
Choosing the right energy rate plan can help save money and contribute to a more sustainable energy system. While the Tiered plan is consistent, the Time-of-Use plan could offer savings for those who can shift their energy use to off-peak hours. However, for electric vehicle owners or those looking to reduce their bills and carbon footprint, the proposed ultra-low overnight TOU plan may be the best choice. It’s worth exploring options to find the best fit for your needs and walle and let’s start saving now!