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Under the current system, the regulated price you pay for electricity is the same every hour of the day.
With new Time-of-Use prices, the price of electricity will depend on when you use it.
Currently, off-peak prices are roughly two-thirds less than on-peak prices – reflecting the lower cost to provide electricity during periods of low demand.
There are three different Time-of-Use prices – 5.3¢/kWh for off-peak, 9.9¢/kWh for on-peak, 8.0¢/kWh for mid-peak. Prices are reviewed every May 1 and November 1 by the Ontario Energy Board (OEB).
The OEB reviews the rates based on electricity prices over the previous six months, as well as its forecast of future prices over the next year.
Time-of-use prices reflect the fact that the cost to provide electricity changes throughout the day.
When demand is low, less expensive sources of electricity are used. When demand rises, more expensive forms of electricity production are called upon, making prices higher.
In summer, on-peak prices apply during the middle of the weekday (from 11 a.m. to
5 p.m.), reflecting the increase in air conditioning use.
In winter, on-peak prices apply in the morning (7 to 11 a.m.) and evening (5 to 9 p.m.), when demand ramps up as residential electricity use increases. During weekends and holidays, all hours of the day are off-peak.
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