Customers Have a Choice: Choosing Time-of-Use or Tiered Pricing

If you have received a bill insert regarding Customer Choice and are interested in making the switch from Time-of-Use Pricing to Tiered pricing, we can help!

Beginning last year, residential and small business customers who currently pay Time-of-Use (TOU) electricity rates are able to choose a rate plan that best suits their lifestyle and household energy needs by giving them the option of switching from TOU pricing to Tiered pricing.

WHAT IS THE DIFFERENCE BETWEEN TIME-OF-USE (TOU) AND TIERED RATES?

The Ontario Energy Board (OEB) sets both Tiered and TOU rates as part of the Regulated Price Plan (RPP) in May and November of every year.

With TOU prices, the price depends on when you use electricity.  

There are three TOU price periods:

• Off-peak, when demand for electricity is lowest. This price applies in the evenings on weekdays and all day on weekends.
  Every household and small business is different, but on average, Ontario households use nearly two thirds of their electricity during off-peak hours.
• Mid-peak, when demand for electricity is moderate. These periods are during the daytime, but not the busiest times of day.
• On-peak, when demand for electricity is generally higher. These are the busier times of day - generally when people are cooking, starting up their computers and running heaters or air conditioners.

With TOU pricing, you can help manage your electricity costs by shifting your usage to lower price periods when possible.

People use electricity differently depending on the season, so the TOU price periods are different in the summer (May 1 to October 31) than they are in the winter (November 1 to April 30). 

For more information and to make your choice, residential customers can click here.

For more information and to make your choice, small business customers can click here.

With Tiered prices, you can use a certain amount of electricity each month at a lower price. Once that limit (called a threshold) is exceeded, a higher price applies. Tiered prices give you the flexibility to use electricity at any time of day at the same price, although that price will change if you exceed the threshold during the month.