New electricity price plan offers more customer choice
Also beginning May 1, 2023, electricity utilities that are ready to do so can offer residential and small business customers, the new Ultra-Low Overnight (ULO) price plan. ULO has four price periods, one of which is a very low-priced overnight period. By November 1, 2023, all utilities must offer ULO to their customers.
Just like TOU pricing, with ULO, the price depends on when customers use electricity. This means customers can help manage their electricity costs by shifting their usage to lower price periods when possible.
With Tiered, the price depends on how much electricity customers use overall in a month. With Tiered pricing, customers can use a threshold amount of electricity at a lower price. Once they exceed that limit, a higher price applies.
Customers considering a switch can use their own electricity usage information and the OEB’s bill calculator to estimate their bill amount under each plan.
To switch price plans, customers must notify their utility by completing an election form. Customers must contact their utility or visit their website for the election form. For customers who want to remain on their current price plan, no action is required.
Setting prices under the Regulated Price Plan
TOU, ULO and Tiered prices are set under the Regulated Price Plan (RPP). The RPP is designed to provide stable pricing, encourage conservation and ensure that the price customers pay for electricity better reflects the price paid to generators that produce the electricity consumers use in their homes or small businesses. TOU, ULO and Tiered prices are set so that they all recover the same forecast average cost of supply for a typical customer.
Understanding electricity bills
Electricity prices are shown on the Electricity line of the bill. This is the cost of the electricity used in the customer’s home or small business.
Electricity distributors deliver this power to their customers’ homes and businesses. They are not allowed to earn any profit from the sale of electricity. Electricity distributors, like Alectra Utilities Corp. or Hydro Ottawa Ltd., and electricity transmitters, like Hydro One Networks Inc., recover their operating costs and an appropriate level of return through rates that are approved by the OEB and reflected on the Delivery line of customer bills. Visit our Understanding your electricity bill page for a more detailed explanation of the different line items on electricity bills.
Power is personal
Residential and small business customers can choose to switch their price plan between TOU, Tiered, and for those whose utility is ready to do so, the Ultra-Low Overnight (ULO) price plan. Utilities must offer ULO to their customers by November 1, 2023. Customers will need to check to see if their utility is ready.
Customers who don’t want to switch their price plan don’t need to do anything. They will stay on their current price plan. If a customer wishes to switch, they must notify their utility by completing and submitting an election form. Customers can contact their utility or visit their utility’s website for the election form.
The OEB has a webpage and bill calculator to help customers who may be considering a switch in their electricity price plan. For more information, see oeb.ca/choice.
Additional information and resources
- Electricity Rates
- RPP Reports
- Power is Personal ULO video
- Tools to Help Consumers Make Informed Decisions
Programs to support electricity customers
- Find out about low-income bill payment support programs at oeb.ca/billhelp.
- Learn more about the Ontario government’s electricity support programs at ontario.ca/yourelectricitybill.
About the Ontario Energy Board
The OEB is the independent regulator of Ontario’s electricity and natural gas sectors. It protects the interests of consumers and supports the collective advancement of the people of Ontario. Its goal is to deliver public value through prudent regulation and independent adjudicative decision-making which contributes to Ontario’s economic, social and environmental development.
Contact us
Media Inquiries
Phone: 416-544-5171
Email: oebmedia@oeb.ca