For Residents and Small Businesses
Most of Ontario’s residential and small business consumers pay time-of-use (TOU) rates − that means how much they pay for electricity depends on when they use it.
Under TOU pricing, consumers pay higher prices when electricity is more expensive to produce and lower prices when it is less expensive. This pricing framework gives consumers the opportunity to lower their costs by shifting their usage to less costly times of the day.
Current Time-of-Use Rates and Schedule
Effective May 1, 2021, residential and small business consumers will pay the following TOU prices set by the Ontario Energy Board (OEB) for the summer period (May 1 - October 31).
- 8.2¢/kWh off-peak
- 11.3¢/kWh mid-peak
- 17.0¢/kWh on-peak
Visit the OEB website for more information about time-of-use rates.
The winter price schedule incorporates both a morning and evening peak which reflects increased lighting needs during the shorter days. By contrast, the summer peaks of electricity take place throughout the afternoon when air conditioning use is at its highest. Off-peak periods account for roughly 50 per cent of the week and are applicable on holidays.
Residential and small business customers that pay TOU electricity prices can choose to switch to tiered pricing. With tiered prices, customers pay a set rate for electricity up to a certain level of consumption. The rate increases for all additional electricity used when consumption by these customers exceeds that threshold. The tiers are different for home and business consumers. The OEB determines the new tiered rates every six months at the same time as it sets the TOU rates. The global adjustment is incorporated into tiered pricing.
Effective May 1, 2021, customers will pay the following tiered prices set by the OEB for the summer period (May 1 - October 31).
Residential customers are charged:
- 9.8¢ per kWh for consumption up to 600 kWh/month
- 11.5¢ per kWh for consumption above 600 kWh/month
Non-residential customers are charged:
- 9.8¢ per kWh for consumption up to 750 kWh/month
- 11.5¢ per kWh for consumption above 750 kWh/month
See OEB website: Electricity Rates for more information about tiered prices.
Electricity consumers can choose to buy their electricity from a retailer. If a consumer signs a retail contract, they elect to pay a fixed rate that is independent of TOU and tiered pricing. These customers will also pay the global adjustment in addition to the rate of their retail contract.
Visit OEB website: Energy Contracts for more information about retail contracts.
Other electricity charges that appear on your bill
The electricity (commodity) charge is just one component of your bill. There are other charges on your bill that reflect the cost of delivering the electricity, ensuring reliability, and managing your account. The OEB is responsible for setting or approving these charges.
Information is power
Smart meters are a key part of the ongoing technological evolution taking place in the electricity sector. Smart meters, which are installed in almost every Ontario home and business, track and capture electricity consumption on an hourly basis. Many local distribution companies offer customers online tools to see and track their electricity usage. By understanding their usage patterns, Ontario consumers can reduce consumption during peak periods or shift usage to lower demand periods − or do both.