- Time-of-use Prices
- Reasons for Higher and Lower Prices
- Two PEAK Seasons: Winter & Summer
- Smart Meters: The Key to Time-of-use Pricing
- Save Energy, Save Money
- Other Pricing (tiered pricing, energy contracts)
The vast majority of Ontario electricity users pay time-of-use prices. There are three time-of-use price periods:
- Off-peak, when demand for electricity is lowest. Ontario households use the majority of their electricity – nearly two thirds of it – during off-peak hours.
- Mid-peak, when demand for electricity is moderate. These periods are during the daytime, but not the busiest times of day.
- On-peak, when demand is highest. The busiest times of day. Generally when people are cooking, firing up their computers and running heaters or air conditioners.
The chart below shows the price you pay today for electricity at different times of the day.
Likewise, electricity rates in Ontario are cheapest when demand is low. That’s because the province is using a steady stream of its cheapest electricity. This power comes from low-cost sources like nuclear generators and large hydroelectric stations.
As daytime begins, more people and businesses turn on their lights, appliances and devices. At some point, the province will exhaust its supply of cheap power. It then turns to more expensive sources, like natural gas-powered plants-and renewables like wind turbines.
Two PEAK Seasons: Summer & Winter
People use electricity differently depending on the season. The Ontario Energy Board, therefore, has established two sets of peak prices. These prices only apply to weekdays. Electricity is at its cheapest price all day on weekends and holidays throughout the year.
In Summer, electricity use peaks during the hottest part of the afternoon, when air conditioners are running on high. On-peak hours are mid-day.
In Winter, less daylight means electricity use peaks twice: once in the morning when people wake up and turn on their lights and appliances, then again when people get home from work. There are two sets of on-peak hours to reflect this.
Smart Meters: The Key to Time-of-use Pricing
Time-of-use requires one vital piece of equipment: Smart Meters tell your utility exactly how much electricity you are using and when you use it. Old hydro meters could only measure how much power you used. Almost every household and small business in Ontario now has a smart meter.
By Saving Energy, You Save Money
Time-of-use pricing better reflects the true cost of power. That’s because you are charged more for electricity when it is more expensive to produce.
As a result, time-of-use encourages you to use power when rates are cheapest – during off-peak hours.
For example, you may now choose to run their dishwasher or do laundry after 7 p.m. Changing your behaviour this way helps:
|by lowering your bills|
|by causing less greenhouse gas emissions|
Ontario’s electricity grid…
|by easing pressure during high-demand hours|
About 1 in 10 Ontario electricity customers are still billed according to tiered prices. If you are a tiered price consumer, you can use a certain amount of energy each month at a lower price. When you pass that level, your rate goes up for all additional electricity. Tiers are different for home and business customers. The charts below show the current prices for each:
How much electricity you use
|Price (¢ per kWh)|
|Residential (effective May 1, 2014)|
|Summer (May 1 - Oct 31)||Up to 600 kWh||8.6|
|More than 600 kWh||10.1|
|Winter (Nov 1 - Apr 30)||Up to 1,000 kWh||--|
|More than 1,000 kWh||--|
|Non-residential (effective May 1, 2014)|
|All seasons||Up to 750 kWh||8.6|
|More than 750 kWh||10.1|
Customers on Contracts
Fewer than 1 in 10 customers get their power from an electricity retailer. Those consumers have signed a contract and pay a fixed rate that is separate from time-of-use and tiered pricing.
Contract customers also pay an additional charge, known as the Global Adjustment. The Global Adjustment includes additional costs not accounted for in market prices. They are costs all Ontario electricity customers must pay. They include:
- Contract prices paid to many power generators
- Many conservation and demand management programs
The Global Adjustment is already blended into time-of-use and tiered prices.
Time-of-use Holiday Schedule How Electricity Prices are Set Historical Electricity Prices FAQ: Regulated Price Plan Settlement Video: What is Time-of-use Pricing? Video: What is RPP Pricing?
Page last updated 2014-04-29