Deciding on the right electricity price plan in Ontario isn’t as simple as it seems. With three different rate structures — Time-of-Use (TOU), Tiered, and Ultra-Low Overnight (ULO) — your choice can significantly impact your monthly bill. But without a clear, accurate view of your historical energy use and costs, how can you confidently pick the best plan?
In this article, we’ll explore:
- Ontario’s electricity price plans: Time-of-Use (TOU), Tiered, and Ultra-Low Overnight (ULO)
- How to gain an accurate view of energy consumption to help choose a plan
- Extra tips and tricks for lowering your electricity bill
Time-of-Use (TOU) Rates
With TOU pricing, your electricity rate changes throughout the day. It’s all about supply and demand — when consumption is lower, the rate drops. Here’s how it’s structured:
- Off-Peak (green): The cheapest rates when demand is low.
- Weekdays from 7 p.m.–7 a.m.
- All day on weekends/holidays
- Mid-Peak (yellow): A moderate rate when demand starts to climb.
- In the summer: Weekdays from 7 a.m.–11 a.m. and 5 p.m.–7 p.m.
- In the winter: Weekdays from 11 a.m.–5 p.m.
- On-Peak (red): The most expensive rates when consumption is highest.
- In the summer: Weekdays from 11 a.m.–5 p.m.
- In the winter: Weekdays from 7 a.m.–11 a.m. and 5 p.m.–7 p.m.
TOU electricity rates are best for you if…
- You’re home during off-peak hours (e.g., retirees, remote workers, stay-at-home parents).
- You can run energy-hungry appliances like dishwashers or washing machines overnight or on weekends.
- Your average electricity use isn’t super high and you can adjust your routine between the summer and winter months.
Avoid TOU electricity rates if….
- You use most of your electricity in the middle of the day (e.g., if you work from home but need to run a lot of electronics and appliances during peak hours).
- You don’t want to think about shifting your habits seasonally.
Tiered Rates
Tiered electricity rates are straightforward: you pay one rate for electricity up to a certain threshold, and if you go over, you pay a higher rate. The threshold is a static 750 kWh all year round for small business customers and changes twice a year for residential customers:
- Summer (May 1–Oct. 31): 600 kWh
- Winter (Nov. 1–Apr 30): 1,000 kWh
Note: the most recent report from the Ontario Energy Board (OEB) says the typical residential household consumed an average of 750 kWh/month (averaged across all 12 months).
Tiered electricity rates are best for you if…
- You like predictable billing and don’t want to worry about time-of-day pricing.
- You live in a smaller home or apartment and rarely go over the lower-tier threshold.
- Your schedule makes it hard to shift electricity use to off-peak times, but your overall usage stays reasonable.
Avoid tiered electricity rates if…
- You consistently use more than the threshold or have a high-usage home (e.g., big family, electric heating, lots of electronics). The price difference between Tier 1 and Tier 2 varies across providers but you can expect to pay an extra 2¢/kWh if you exceed the threshold.
- You’re able to adjust energy use to off-peak hours. TOU and ULO price plans are more cost-effective for people who are able to adapt their habits — saving up to $90 per year, according to the Ontario government.
Ultra-Low Overnight (ULO) Rates
ULO pricing is designed for people who use most of their electricity late at night. This plan has the biggest difference between its cheapest and most expensive rates.
- Ultra-Low Overnight (blue): The lowest rates, when demand is lowest.
- Every day, from 11 p.m.–7 a.m.
- Weekend Off-Peak (green): Cheaper rates on weekends and holidays.
- Weekends and statutory holidays, from 7 a.m.–11 p.m.
- Mid-peak (yellow): A moderate rate as demand increases on weekdays.
- Weekdays, from 7 a.m.–4 p.m. and 9 p.m.–11 p.m.
- On-Peak (red): The most expensive rate when electricity demand is highest.
- Weekdays, from 4 p.m.–9 p.m.
ULO electricity rates are best for you if…
- You charge one or more electric vehicles (EVs) at home, overnight.
- You work late shifts and naturally use more power during off-hours.
- You can set timers on your dishwasher, washer and dryer, or other appliances to run overnight.
Avoid ULO electricity rates if…
- You use a lot of electricity during the day when rates are high.
- Your lifestyle makes it hard to take advantage of the super-low overnight rates.
Which electricity price plan should you choose?
Most Ontarians don’t have a clear picture of their historical consumption, making it nearly impossible to choose the most cost-effective plan with confidence. To choose between TOU, Tiered, and ULO and discover cost savings, you first need to figure out how much energy you actually consume during peak hours.
Choosing between plans for the first time? The OEB’s bill calculator can help compare projected costs across all three plans.
Wondering if it’s time to switch plans? Jotson simplifies this by analyzing your actual usage data, helping you make an informed decision based on real numbers — not estimates.
Looking for extra ways to lower your electricity bill?
Even after you choose the best plan for your household, you may be able to save even more by following the tips below:
- Use power when it’s cheapest: Run appliances overnight, batch laundry on weekends, and charge devices during off-peak hours.
- Unplug unused electronics: Many devices consume some power even when turned off (phone chargers and video game consoles, for example).
- Upgrade to LED bulbs: LED bulbs use less energy and last longer.
- Optimize heating and cooling: Use a smart thermostat to adjust temperatures when you’re asleep or away from the home.
- Seal up drafts: Properly insulated windows and doors can reduce the need for heating in winter and cooling in summer.
Learn more about your current electricity price plan by connecting your Green Button data to Jotson. You can use the free app to compare consumption and costs month-over-month or year-over-year.
