On November 1, 2020, new Time-of-Use and Tiered prices will come into affect under the Ontario Energy Board’s Regulated Price Plan.
Since March 24, 2020, the prices that have been paid by TOU customers have been the same no matter the time of day. On November 1, 2020, those customers will resume paying electricity prices that vary according to the time of day.
There are three time-of-use price periods:
- Off-peak is when demand for electricity is lowest;
- Mid-peak is when demand for electricity is moderate;
- On-peak is when demand is highest.
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. The price periods are a blending of forecast wholesale costs with the anticipated global adjustment.
People use electricity differently throughout the year. The Ontario Energy Board has therefore created two sets of peak prices, which apply only to weekdays. Electricity is at its cheapest price on weekends and holidays all day throughout the year.
For more information, please visit The Ontario Energy Board.
TOU Customers Now have a Choice
Residential or small business customers paying TOU prices can choose to switch to Tiered Prices. Customers that want to stay on TOU pricing do not need to do anything.
The Ontario Energy Board has a new webpage and a new bill calculator to help customers who may be considering a switch to TOU to Tiered Pricing. For more information, visit www.oeb.ca/choice or Customer Choice
May 1 – October 31 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.
November 1 – April 30 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.