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Ontario's Set To Lower Overnight Electricity Rates & Here's How Much It Could Save You

Cheaper energy rates? Yes please!

On Tuesday, the Ontario government announced its plans to move forward with the ultra-low overnight Time-of-Use (TOU) electricity price initiative to help people save money and take control of their energy bills.

According to the Ontario Energy Board (OEB), the new rate could save customers up to $90 per year while supporting electric vehicle (EV) adoption by decreasing overnight charging costs.

Currently, the OEB plans to offer an overnight rate of approximately 2.5 cents per kilowatt-hour, which is 70% lower than the current off-peak rate, in exchange for a higher on-peak rate.

"Customers expect to be able to choose the electricity price plan that best fits their lifestyle, allows them to manage costs and incents their adoption of new energy technologies," Susanna Zagar, CEO of the OEB, said.

"We are pleased that the insights we have gained through our analysis might enable more choice and empower Ontarians," Zagar added.

As a result, people who use more electricity at night, such as EV users, could save up to 5% on their electricity bills.

"Introducing the ultra-low overnight electricity rate will help our efforts to make life more affordable for Ontario families by keeping costs down and saving them up to $90 per year," Todd Smith, Minister of Energy, said.

The ultra-low overnight rates would last every day from 11:00 p.m. to 7:00 a.m.

Back in November of 2020, families, small businesses, and farms would offer the choice between two electricity rate plans: a Time-of-Use or Tiered rate plan.

If your dream is to own a Tesla, now could be as good a time as any.