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

On Tuesday, the Ontario government announced its plan to move forward with the ultra-low overnight time-of-use electricity price initiative in an effort 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 $75 per year on average 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 of 8.2 cents, in exchange for a higher on-peak rate.

Since November of 2020, most households and small businesses have had the choice between two electricity rate plans — time-of-use or tiered.

"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," said Ontario Energy Minister Todd Smith.

Under the proposed plan, the ultra-low overnight rates would last every day from 11 p.m. to 7 a.m.

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

This article's cover image was used for illustrative purposes only.