Even while you sleep, appliances like your refrigerator and electric vehicle charger still use electricity. Launched May 1, 2023 Ontario’s ultra-low overnight pricing aims to help you pay less for the power you draw from the grid during off-hours.
How Does the New Plan Work?
According to Energy Minister Todd Smith, this plan could save customers up to $90 per year. “…Our government realized there was more we could do, especially as the province continues to have an excess supply of clean electricity at night, when province-wide electricity demand is lower,” Smith said.
Customers who opt into the new rate will pay 2.4 cents per kilowatt-hour between 11 p.m. and 7 a.m., which is 67% lower than the current off-peak rate. However, switching to ultra-low overnight pricing means you must prepare to pay a higher on-peak rate.
Currently, this option is only available to customers of Toronto Hydro, London Hydro, Centre Wellington Hydro, Hearst Power, Renfrew Hydro, Wasaga Distribution and Sioux Lookout Hydro. Officials plan to expand availability to all local distribution companies by Nov. 1.
Should You Take Advantage of Ultra-Low Pricing?
The addition of ultra-low pricing has created a third electricity option for Ontarians to choose from, in addition to the existing time-of-use and tiered plans. If your household tends to use more electricity at night, you could benefit from making the switch.
Since nighttime electricity typically comes from renewable, zero-emissions resources like nuclear, hydro and wind power, officials hope that shifting more electricity use to off-peak hours will allow the province to better leverage its clean electricity grid.
Estimates suggest this new plan will result in potential capacity cost savings of up to $5.7 million per year, which can benefit all Ontario ratepayers. Families and small business owners can use the Ontario Energy Board’s Bill Calculator to determine which electricity rate plan best suits their lifestyle and will help them save the most money on their energy bills.
In addition to the overnight rate of 2.4 cents per kWH, the new price plan provides:
- On-peak rates of 24 cents per kWh and weekdays between 4 p.m. and 9 p.m.
- Weekend off-peak rates of 7.4 cents per kWh on weekends and statutory holidays between 7 a.m. and 11 p.m.
- Mid-peak rates of 10.2 cents per kWh: weekdays 7 a.m.-4 p.m. and 9 p.m.-11 p.m.
photo credit: ontario.ca
