TORONTO—Hydro One customers now have access to a new pricing regime announced by the province on May 1. Since May 1, a number of Ontario communities have benefited from a change in electricity rates billed by the provincial government as “a new ultra-low overnight price plan.”
Under that plan, customers of Toronto Hydro, London Hydro, Centre Wellington Hydro, Hearst Power, Renfrew Hydro, Wasaga Distribution and Sioux Lookout could opt in to the plan that would see their overnight electricity rates plummet to just 2.4 cents a kilowatt hour (kWh) providing a 67 percent drop under time of use—but the caveat is dinnertime rates would skyrocket to 24 cents per kWh on weekdays from 4 to 9 pm, that’s up from 15.1 cents under time-of-use pricing plans. That new ultra-low pricing will be available to most Hydro One customers starting November 1.
The plan is expected to have a positive impact on families struggling with current high interest and inflation rates.
“Our government has put families back in control of their energy bills, and the new ultra-low overnight price plan will give families and small businesses who use more electricity overnight more ways to save” said Energy Minister Todd Smith, in a release announcing the changes back in April. “Starting May 1, customers can opt-in to the new ultra-low electricity price plan which could save them up to $90 per year, while at the same time making our grid more efficient, helping to reduce costs for all ratepayers.”
According to the government release, delivery of the new ultra-low overnight rate is possible as Ontario continues to have excess clean electricity during overnight hours. By shifting electricity use to these hours, the province would be better able to leverage Ontario’s clean electricity grid. By increasing grid efficiency, the resulting potential capacity cost savings for the electricity system are estimated to be up to $5.7 million per year, thereby helping to reduce costs for all Ontario ratepayers.
“By making better use of the province’s clean grid, our government is taking further action to keep electricity affordable in Ontario,” said Minister of the Environment David Piccini in the government release. “Offering more options for smart electricity use is good news for Ontarians and the environment.”
The new rates are anticipated to assist those with electric vehicles (EVs) and shift workers, as well as inducing Ontarians to move what electricity usage they can to the late night hours.
“As more and more people across the province begin to use EVs, the ultra-low overnight price plan will make it easier and less expensive to charge their vehicles in the evening,” said Minister of Economic Development, Job Creation and Trade Vic Fedeli. “Ontario continues to strengthen our province’s end-to-end EV supply chain, ensuring that the cars of the future are build right in Ontario by Ontario workers.”
Several options are available to Ontario consumers and that plethora of choices can be daunting to navigate. The options include time-of-use rates, tiered rates or the “new and improved” ultra-low overnight rates. To better calculate which option is best for a consumer’s household, the Ontario Energy Board (OEB) (which sets the rates for electricity providers each year on November 1) has set up an energy use calculator online at oeb.ca/consumer-information-and-protection/bill-calculator.
To get the best use out of the calculator, the OEB recommends knowing how much electricity you use and when you use it (paying attention to seasonal variations). That information can be found on the “Electricity line” of your Hydro bill and you should have a number of bills at your disposal in order to be as accurate as possible.
Eligible consumers include households, small businesses and farms, with some exceptions—primarily those whose internet access precludes the use of smart meters.
