Ontario introduces ‘ultra low’ overnight hydro rate. What you need to know

Ontario hydro customers will soon be able to choose a new “ultra-low” overnight rate aimed at people who use more electricity at night, including electric vehicle owners who need to charge their cars.

Energy Minister Todd Smith says the new rate will be 2.4 cents per kilowatt hour, 67 per cent lower than the current off-peak rate.

“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,” Smith said.

“Starting May 1, customers can opt-in to the new ultra-low electricity price plan, which could save them up to $90 per year while at the same time making our grid more efficient, helping to reduce costs for all ratepayers.”

If customers choose that plan, it will be exchanged for a higher on-peak rate. Smith says it could appeal to customers who electrically heat their homes, charge their electric vehicles overnight or who are shift workers.

He says it’s a way to shift demand to a period when it is typically lower and when Ontario produces excess electricity.

What the plan provides:

• Ultra-low overnight rate of 2.4 cents per kWh: every day 11 p.m.-7 a.m.
• Mid-peak rates of 10.2 cents per kWh: weekdays 7 a.m.-4 p.m. and 9 p.m.-11 p.m.
• On-peak rates of 24.0 cents per kWh: weekdays 4 p.m.-9 p.m.
• Weekend off-peak rates of 7.4 cents per kWh: weekends and statutory holidays 7 a.m.-11 p.m.

The province says the new optional third price plan is available to all eligible Regulated Price Plan (RPP) TOU and Tiered consumers.

On May 1, Renfrew Hydro, Toronto Hydro, London Hydro, Centre Wellington Hydro, Hearst Power, Wasaga Distribution, and Sioux Lookout Hydro will offer the new pricing, and all utilities will be required to provide it within six months.

The province noted that Ontario’s electricity demand influenced the move, saying the government will provide electricity relief for both people and businesses while investing in a clean and reliable energy system.

Ontario’s Minister of Economic Development, Job Creation and Trade, Vic Fedeli, says the ultra-low overnight rate will help reduce emissions by encouraging more nighttime electricity — typically generated from clean, zero-emissions resources.

“As more and more people across the province begin to use EVs, the Ultra-Low Overnight price plan will make it easier and less expensive to charge their vehicles in the evening,” said Minister of Economic Development, Job Creation and Trade, Vic Fedeli.

“Ontario continues to strengthen our province’s end-to-end EV supply chain, ensuring that the cars of the future are built right in Ontario by Ontario workers.”

With files from The Canadian Press