Cheaper times to use electricity will change on May 1 in Ontario

Warmer weather has begun to arrive and soon, electricity pricing in Ontario will adjust to account for the change.

Starting on Thursday, May 1, changes will take effect for many customers in the province.

Most electricity customers in Ontario have three options for billing: time-of-use and ultra-low overnight, with prices changing depending on when power is used; customers can also choose a tiered plan, with costs depending on how much electricity is used overall in a month.

Most customers in Ontario pay time-of-use rates.

From Nov. 1 to April 30, winter price periods are in effect and from May 1 to Oct. 31, the summer times are in place.

“Summer rates differ from winter rates to reflect different consumption patterns,” Ontario Energy Board spokesperson Mary Ellen Beninger previously told INsauga.com.

“For instance, in summer (May 1 to Oct. 31), electricity usage peaks during the hottest part of the afternoon when air conditioners are running on high. As a result, on-peak hours are mid-day. In winter (Nov. 1 to April 30), 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. As a result, there are two sets of on-peak hours during the winter season.”

Here is a look at how time-of-use pricing will differ starting May 1 (click on the image to enlarge):

Off-peak hours will be from 7 p.m. to 7 a.m., which is the same as the winter period, but mid-peak will be from 7 a.m. until 11 a.m., as well as 5 p.m. to 7 p.m. On-peak hours will be from 11 a.m. to 5 p.m.

On weekends and holidays, off-peak rates apply all day.

The rates, which were set by the OEB last fall, will remain the same:

Off-peak: 7.6 ¢/kWh

Mid-peak: 12.2 ¢/kWh

On-peak: 15.8 ¢/kWh

The residential tiered threshold will also change come May 1. Tiered rates allow customers to use a certain amount of electricity at a particular price up to a certain threshold. Beyond that threshold, the rate changes.

Here is how that will differ come May 1 (click on the image to enlarge):

As you can see, in the summer period the threshold is lower than in the winter.

“In the winter period (Nov. 1 – April 30), the tier threshold for residential customers is 1,000 kWh, so that during the heating season households can use more power at the lower price. In the summer period (May 1 – Oct. 31), the tier threshold for residential customers is 600 kWh,” the OEB says.

The rates, however, will remain the same:

Tier 1: 9.3 ¢/kWh

Tier 2: 11 ¢/kWh

And lastly, ultra-low overnight pricing remains the same all year and there won’t be any change come May 1:

The OEB says less than one in 10 customers in Ontario buy their electricity directly from a retailer.

“If you’re thinking about signing an energy contract, you will pay the price in the contract, which is not regulated by the Ontario Energy Board,” the board notes.