December 22, 2020 - To support Ontarians staying home during the rapidly evolving COVID-19 situation, the Government of Ontario has taken steps to hold the price of electricity at 8.5 ¢/kWh for electricity used from January 1, 2021 until the end of the day on January 28, 2021. The fixed 8.5 ¢/kWh price is equal to the off-peak price set by the OEB for January 1, 2021. This fixed price will apply to residential, small business and farm customers who buy their electricity from their utility and applies to customers on Time-of-Use (TOU) or Tiered pricing. So, no matter what time of day you use your electricity, or how much you use, the fixed price will apply. The price change will happen automatically. No customer action is required.
For more information:
- Read the government’s news release from December 22, 2020
- Read our FAQs
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 residential and small business customers that buy electricity from their utility, there are two different types of rates (also called prices here). The Ontario Energy Board sets both:
- Time-of-Use (TOU) - With TOU, the price depends on when you use electricity. Find out more about TOU prices and managing your electricity costs.
- Tiered - With tiered prices, a customer uses a certain amount of energy each month at a lower price. Once you exceed that limit, the price goes up. Read more below about Tiered prices.
If you pay TOU prices, you can now choose to switch to Tiered prices. Read more about choosing your electricity price plan.
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 prices
With Tiered prices, you can use a certain amount of electricity each month at a lower price. Once that limit (called a threshold) is exceeded, a higher price applies. The threshold changes with the season to reflect changing usage patterns – for example, there are fewer hours of daylight in the winter and some customers use electric heating.
In the winter period (November 1 – April 30), the Tier threshold for residential customers is 1,000 kWh, so that households can use more power at the lower price. In the summer period (May 1 – October 31), the Tier threshold for residential customers is 600 kWh. The Tier threshold for small business customers is 750 kWh all year round.
Tiered prices give you the flexibility to use electricity at any time of day at the same price, although that price will change if you exceed the threshold during the month.
The chart below shows the prices and tiers for each type of customer. See how prices for Tiered customers have changed over time
Residential (effective January 1, 2021)
| 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 | 8.5 |
| More than 1,000 kWh | 8.5 |
Non-Residential (effective January 1, 2021)
| When | How much electricity you use | Rate (¢ per kWh) |
|---|---|---|
| All seasons | Up to 750 kWh | 8.5 |
| More than 750 kWh | 8.5 |
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 prices 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.