Time of Use Pricing
In Ontario, electricity customers are now charged for their electricity based on WHEN they use power as well as how much they use. This is called Time of Use (TOU) pricing. The new rate structure is a provincial initiative designed to shift the electricity market towards a more environmental, self sustaining future.
In the electricity market, prices rise and fall over the day and tend to drop over night. TOU rates vary—depending on the time of day, the day of week (week or weekend, and holidays) and the season (summer or winter).
With rates that vary, the Province will provide an incentive to shift and/or reduce electricity consumption at times of peak demand. Here are the three TOU periods:
|On Peak||the cost of energy and demand are highest.|
|the cost of energy and demand are moderate.|
|the cost of energy and demand are lowest .|
Currently, TOU rates are charged based on the following pattern:
Another way to express the same information is:
|May 1-Oct 31||Monday - Friday||mid peak||on peak||mid peak||off peak|
|May 1-Oct 31||Sat, Sun. & holidays||off peak||off peak||off peak||off peak|
|Nov 1 - Apr 30||Monday - Friday||on peak||mid peak||on peak||off peak|
|Nov 1 - Apr 30||Sat, Sun. & holidays||off peak||off peak||off peak||off peak|
All year round, the lowest cost of electricity will be found evenings, weekends and holidays. The highest cost of electricity will flip between breakfast/supper and midday depending on the season. In the summer, mid day is ON PEAK and should be avoided. In the winter, breakfast and supper will be ON PEAK and should be avoided.
Both the cost of energy and the hours for each time period are reviewed by the Ontario Energy Board. They are set every six months by May 1st and November 1st.
Time of Use Rates reflect the cost of the volume of electricity that you use and does not include delivery and regulatory charges on your bill.
*Those customers who have a contract with an electricity retailer will continue to be charged according to the contract that they signed.
This page last updated 2014-07-15.