Time-of-use price periods for electricity users changing November 1

TOU price period

Winter hours

TOU prices effective
July 1, 2017 through
April 30, 2018

Off-Peak

Weekdays from 7 p.m. – 7 a.m.

All day weekends and holidays

6.5 ¢/kWh

Mid-Peak

Weekdays 11 a.m. – 5 p.m.

9.5 ¢/kWh

On-Peak

Weekdays 7 a.m. – 11 a.m. and 5 p.m.
– 7 p.m.

13.2 ¢/kWh

Price tiers

Tier threshold

Tiered prices effective
July 1, 2017 through April
30, 2018

Tier 1

Residential customers:
for electricity used up to 1,000
kWh/month

Non-residential customers:
for electricity used up to 750
kWh/month

7.7 ¢/kWh

Tier 2

Residential customers: for
electricity used above 1,000
kWh/month

Non-residential customers: 
for electricity used above
750 kWh/month

9.0 ¢/kWh

TOU pricing

With time-of-use (TOU) prices, customers pay prices that generally reflect
the value of electricity supply at different times of the day.    

There are three time-of-use periods – on-peak, mid-peak and off-peak.
Prices are highest during on-peak, lower during mid-peak and lowest
during off-peak.

TOU prices encourage households and small businesses to use
electricity during lower-cost time periods. This can ease pressure on the
provincial electricity system and can also benefit the environment.

Nearly all residential customers and many small business customers on
the RPP pay time-of-use prices.

Ratio
between
on/off peak

The off-peak price (6.5 ¢/kWh) is a little less than half the on-peak price
(13.2 ¢/kWh). This pricing encourages customers to conserve when
power costs most.

Why prices
depend on
the time
electricity is
used

TOU prices are set to be cheapest when demand is lowest: during the
evenings, on weekends and on holidays.

In Ontario, when demand is lower, most of the electricity we use comes
from power sources such as nuclear generators and large hydroelectric
stations. These sources, which are designed to run all of the time, are
referred to as "baseload" power.

As daytime begins, more people and businesses turn on their lights,
appliances and devices. As the increased demand exhausts all available
baseload power, the province turns to sources that generally cost more,
such as natural gas-fired plants that can be called into action quickly to
meet rising demand. Renewable sources, such as solar and wind,
contribute to our supply needs when they are available.

Summer
and winter
TOU price
periods

TOU price periods are different in the summer than they are in the winter.

The difference reflects the seasonal variations in how customers
use electricity. During the summer, people use more during the hottest part of
the day, when air conditioners are running on high. In winter, with less
daylight, electricity use peaks twice: once when people wake up in the
morning and turn on their lights and appliances, and again when people
get home from work.

Tiered
pricing
threshold

A small number of residential and small business customers are billed
using tiered prices. Under tiered pricing, a customer can use a certain
amount of energy each month at a lower price. Once that limit or
threshold is exceeded, the price goes up.

The threshold for residential customers is 600 kWh/month in the summer,
and increases to 1,000 kWh/month in the winter. The threshold for non-
residential customers stays at 750 kWh/month throughout the year.

Help for
low-income
consumers

Low-income consumers may be eligible for help paying their energy bills
through the Ontario Electricity Support Program (OESP) and the Low-
Income Energy Assistance Program (LEAP). OESP gives eligible
households an ongoing monthly on-bill credit to reduce their electricity
bills. LEAP can provide a one-time grant towards electricity or natural gas
bills for customers that may be facing disconnection; it is for emergency
situations. To find out more and see if you qualify, visit
www.oeb.ca/billhelp.

Conservation
Tips

The Independent Electricity System Operator and utilities offer a variety of
tips, tools and incentives to help customers conserve more. To explore
opportunities to better manage your electricity consumption, visit
www.kilowattway.ca or contact your utility.