“Time of Use” Rates
Ontario's electricity market is changing. All homes and small businesses across Ontario will be billed for electricity using Time-of-Use rates. With this new rate structure, the price of electricity varies depending on when it is used. There are three different rate periods:
- On-peak (when demand for electricity is highest);
- Mid-peak (when demand for electricity is moderate); and
- Off-peak (when demand for electricity is lowest).
Prices for the Regulated Price Plan (RPP & T.O.U.)
Consumers who purchase electricity from their local utility are charged the following rates for electricity consumption. These rates are set by the Ontario Energy Board as part of the Regulated Price Plan. If you purchase electricity from an electricity retailer, the prices you pay will be different and will be stated in the contract you signed.
Smart Meters and Time-of-Use rates are an initiative of the provincial government to promote conservation and reduce peak demand for electricity.
Peak demand happens when we all use electricity at the same time. Unlike most commodities, electricity cannot be stored and must be generated in real time to meet Ontario's needs.
Reducing peak demand is good for the environment because the power plants used to meet peak demand are usually fossil-fuel generating stations. Using them less will mean less greenhouse gases and in the long run, it will also save money. It's expensive to build and maintain power plants that only operate during peak periods.