Ontario looks to reduce energy costs for customers using more electricity with a new price plan

The new electricity plan becomes one of three available to Ontario consumers

The Ontario Government has announced it’s launching a new ultra-low overnight price plan in an effort to lower electricity costs for consumers.

On May 1st, 2023, customers of different electricity providers from around the province will have the ability to opt-in to the new price plan with all utilities required to offer it to customers within six months. The new plan is ideal for customers that use more electricity at night.

Customers of the following distributors can access the new plan on May 1st:

  • Toronto Hydro
  • London Hydro
  • Centre Wellington Hydro
  • Hearst Power
  • Renfrew Hydro
  • Wasaga Distribution
  • Sioux Lookout Hydro

This newly announced pricing structure is one of three available for electricity customers alongside the existing Time-of-Use and Tiered plans. Customers that find themselves using more electricity at night, whether it be for electric vehicles (EVs) or those who electrically heat their homes, could save up to $90 per year shifting demand to the ultra-low overnight plan when province-wide electricity demand is lower.

“Our government has put families back in control of their energy bills, and the new Ultra-Low Overnight price plan will give families and small businesses who use more electricity overnight more ways to save,” said Todd Smith, Minister of Energy, in a recent press release.

As for specifics, the new rate set by the Ontario Energy Board will be set at 2.4 cents per kilowatt-hour, 67 percent lower than the current off-peak rate. This comes in exchange for a higher on-peak rate.

Ontario continuing to excess clean electricity overnight is one of the reasons that this new price plan is able to be delivered.

David Piccini is the Minister of the Environment, Conservation and Parks for the Government of Ontario. He said the more options for smart electricity, the better for Ontarians and the environment.

“By making better use of the province’s clean grid, our government is taking further action to keep electricity affordable in Ontario,” Piccini said.

The full details of the new ultra-low overnight price plan can be found in the Government of Ontario’s press release here.

Image credit: Shutterstock.

Source: Government of Ontario