Starting November 1, 2025, Ontario residents and small businesses will experience significant changes in electricity pricing. The Ontario Energy Board (OEB) is implementing new Time-of-Use (TOU) pricing periods, adjusting tiered thresholds, and maintaining the Ultra-Low Overnight (ULO) plan’s structure. These modifications aim to better align electricity rates with seasonal consumption patterns and encourage energy use during off-peak hours.
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Time-of-Use (TOU) Pricing: New Winter Hours
For customers on the Time-of-Use plan, the pricing periods will shift as follows:
- On-Peak (High Price): 7 a.m. to 11 a.m. and 5 p.m. to 7 p.m.
- Mid-Peak (Moderate Price): 11 a.m. to 5 p.m.
- Off-Peak (Low Price): 7 p.m. to 7 a.m.
These changes reflect the OEB’s efforts to better match electricity prices with periods of high and low demand. On weekends and holidays, off-peak rates apply all day, providing an opportunity for consumers to save by shifting their energy use to these periods.
Tiered Pricing: Adjusted Consumption Thresholds
Under the Tiered Pricing plan, customers are charged a lower rate for electricity used up to a certain threshold and a higher rate for usage above that limit. Starting November 1, 2025, the residential tier threshold will increase to 1,000 kWh per month, up from the summer threshold of 600 kWh. This adjustment allows households to use more electricity at the lower rate during the heating season.
Ultra-Low Overnight (ULO) Pricing: Year-Round Stability
The Ultra-Low Overnight plan remains unchanged:
- Ultra-Low Overnight Rate: 2.8¢/kWh (11 p.m. to 7 a.m.)
- Weekend Off-Peak Rate: 7.6¢/kWh (7 a.m. to 11 p.m.)
- Mid-Peak Rate: 12.2¢/kWh (Weekdays 7 a.m. to 4 p.m. and 9 p.m. to 11 p.m.)
- On-Peak Rate: 28.4¢/kWh (Weekdays 4 p.m. to 9 p.m.)
These rates are consistent throughout the year, providing predictability for consumers who prefer to use electricity during off-peak hours.
Choosing the Right Pricing Plan
Ontario residents and small businesses can select from three pricing plans:
- Time-of-Use (TOU): Rates vary depending on the time of day.
- Ultra-Low Overnight (ULO): Lower rates during overnight and weekend off-peak hours.
- Tiered Pricing: Fixed rates up to a certain consumption threshold, with higher rates for usage beyond that limit.
To switch between plans, customers must notify their utility provider by completing an election form. It’s advisable to review your electricity usage patterns and consult the OEB’s Bill Calculator to determine the most cost-effective plan for your needs.
Key Dates and Actions
- November 1, 2025: New TOU pricing periods and tier thresholds take effect.
- Mid-October 2025: The OEB will announce the Regulated Price Plan (RPP) rates for the upcoming year. These rates are typically set annually and may impact your electricity costs.
- Before November 1, 2025: Review your current pricing plan and consider switching if it aligns better with your electricity usage habits.
Tips to Manage Your Electricity Costs
- Shift Usage: Use high-energy appliances like dishwashers and laundry machines during off-peak hours to take advantage of lower rates.
- Monitor Consumption: Keep track of your monthly electricity usage to stay within the lower-priced tier under the Tiered Pricing plan.
- Utilize the Bill Calculator: Use the OEB’s Bill Calculator to estimate your monthly costs under different pricing plans and adjust your habits accordingly.