Your Hydro Bill Could Get Cheaper Thanks To Ontario's New Energy Plan & Here's How To Save

Ontario residents facing a constant battle with the cost of living — from interest rates to groceries and the high cost of rent — are getting some relief when it comes to hydro rates.

A new energy pricing option called the Ultra-Low Overnight Electricity Price Plan has been announced by the Ontario government. The new plan will offer customers a cheaper option when doing their laundry, running the dishwasher or air conditioning.

Starting May 1, 2023, customers of Toronto Hydro, London Hydro, Centre Wellington Hydro, Hearst Power, Renfrew Hydro, Wasaga Distribution, and Sioux Lookout Hydro will be able to opt-in to the new energy-saving price plan and these utility companies will be required to offer it within six months.

The overnight price plan makes it cheaper for customers to use hydro between the hours of 11:00 p.m. and 7:00 a.m.

“Our government has put families back in control of their energy bills, and the new Ultra-Low Overnight price plan will give families and small businesses who use more electricity overnight more ways to save,” said Todd Smith, Ontario's Minister of Energy, in a statement.

The plan presents a third option for hydro users, on top of the existing Time-of-Use (TOU) and Tiered hydro plans.

According to the government, the Ultra-Low Overnight Electricity Price Plan could save you up to $90 a year.

The Ontario Energy Board has set this new ultra-low overnight rate at 2.4 cents per kilowatt-hour (kWh), a price that is 67% lower than the current off-peak rate.

Here are the other time-of-day rates for anyone who opts-in to the new plan:

• Ultra-low overnight rate of 2.4 cents per kWh: every day 11 p.m.-7 a.m
• Mid-peak rates of 10.2 cents per kWh: weekdays 7 a.m.-4 p.m. and 9 p.m.-11 p.m
• On-peak rates of 24.0 cents per kWh: weekdays 4 p.m.-9 p.m
• Weekend off-peak rates of 7.4 cents per kWh: weekends and statutory holidays 7 a.m.-11 p.m.