October 13, 2020 - The OEB announced new electricity prices for households and small businesses, effective November 1, under the Regulated Price Plan. The winter Time-Of-Use (TOU) hours and the winter Tier threshold for residential customers, which were maintained for the summer 2020 period, will remain in effect on November 1. Since June 1, 2020, residential and small business customers on TOU have been paying a fixed electricity price of 12.8 ¢/kWh for all hours of the day as part of the government’s response to the COVID-19 pandemic.
If you’re a residential or small business customer that pays TOU prices, you can now choose to switch to Tiered prices.
- Read more about the new electricity prices (Oct 13-20)
- Read more about opting out of Time-of-Use Pricing
As part of our mandate, we set the rates that your utility charges for the electricity you use in your home or small business. These rates appear on the Electricity line of your bill. We also set the Delivery rates that cover the cost to deliver electricity to most residential and small business customers.
See a description of all of the charges that appear on your electricity bill
Types of electricity rates
For customers that buy electricity from their utility, there are two different types of rates. The Ontario Energy Board sets both:
- Time-of-use - Most residential and small business customers are charged using time-of-use rates, where the rate depends on when you use electricity. Find out more about time-of-use rates and managing your electricity costs.
- Tiered - A very small number of customers are still paying tiered rates, where a customer uses a certain amount of energy each month at a lower rate. Once you exceed that limit, the rate goes up. Read more about tiered rates.
For customers that have signed up for a contract with an energy retailer, the price is set out in the contract. The Ontario Energy Board does not regulate this. Read more about contracts.
How electricity rates are set
We set electricity rates for residential and small business customers. We review them twice a year, on May 1 and Nov 1, and if necessary, we adjust these rates.
- See what they’re asking for and why, and provide your comments online
- Find out when upcoming community meetings and hearings are being held so that you can attend
- See documents related to the case
Tiered rates
A small number of Ontario electricity customers are billed using tiered rates. Under tiered rates, a customer can use a certain amount of energy each month at a lower rate. Once that limit is exceeded, the rate goes up. The chart below shows the rates and tiers for each type of customer.
See how rates for tiered customers have changed over time
Residential (effective November 1, 2020)
| When | How much electricity you use | Rate (¢ per kWh) |
|---|---|---|
| Summer (May 1 - Oct 31) | Up to 600 kWh | -- |
| More than 600 kWh | -- | |
| Winter (Nov 1 - Apr 30) | Up to 1,000 kWh | 12.6 |
| More than 1,000 kWh | 14.6 |
Non-Residential (effective November 1, 2020)
| When | How much electricity you use | Rate (¢ per kWh) |
|---|---|---|
| All seasons | Up to 750 kWh | 12.6 |
| More than 750 kWh | 14.6 |
Electricity prices in energy contracts
Fewer than 1 in 10 customers in Ontario buy their electricity from an electricity retailer. If you’re thinking about signing an energy contract, you will pay the price in the contract, which is not regulated by the Ontario Energy Board.
The Global Adjustment
Most electricity generating companies get a guaranteed price for the electricity that they produce. The Global Adjustment is the difference between that guaranteed price and the money the generators earn in the wholesale marketplace. The Global Adjustment also covers the costs of some conservation programs.
All electricity consumers have to pay a share of the Global Adjustment. The time-of-use and tiered electricity rates charged by your electricity utility already include an estimate of the Global Adjustment. If you sign up for a contract with an energy retailer, you have to pay your share of the Global Adjustment on top of the contract price. The Global Adjustment will also appear as a separate line on your bill.
Visit the Independent Electricity System Operator (IESO) website for more information on the Global Adjustment.
Calculate your electricity bill
Electricity distribution utilities deliver electricity to your home or business and also issue your bill, unless you are a customer of a unit sub-metering provider. Use our calculator to estimate your monthly bill. You can also compare your current bill with what to expect if you sign a contract with an electricity retailer.