Cottagers will have more choice over how they’re billed for electricity starting November 1. Hydro One has announced that it’s introducing a new “ultra-low” overnight price plan for all of Ontario. Utility companies across the province have until the beginning of November to start offering the price plan to customers.
The plan is intended to leverage the excess energy generated overnight when demand for electricity is low. It will favour those on shift work as well as electric vehicle owners who charge their vehicles overnight. The rate is set at 2.4 cents per kilowatt-hour (kWh) everyday from 11 p.m. to 7 a.m., which is 67 per cent lower than the current off-peak rate. But in exchange, on-peak rates are higher than average at 24 cents per kWh on weekdays between 4 p.m. and 9 p.m.
“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, the Minister of Energy, in a statement. “Customers can opt-in to the new ultra-low electricity price plan, which could save them up to $90 per year.”
The Ontario government says that the new price plan will make the province’s electricity grid more efficient, saving up to $5.7 million per year in capacity costs, which should reduce energy bills for all ratepayers.
The plan has already been rolled out by Toronto Hydro, London Hydro, Centre Wellington Hydro, Hearst Power, Renfrew Hydro, Wasaga Distribution, and Sioux Lookout Hydro. The plan’s availability may vary depending on your location—check with your local service provider for more information.
Time-of-use plan vs. tiered-rate plan
This will provide Hydro One customers with a third rate option to choose from. The two other options include a time-of-use rate plan and a tiered rate plan. The time-of-use plan charges customers based on when they use electricity. On-peak hours are the most expensive and are generally during the busiest times of the day, such as mealtimes. Mid-peak hours are slightly less expensive and are generally during the day, but not at busy times. The cheapest time is off-peak hours, which are generally overnight.
The other option is the tiered plan, which allows customers to use a certain amount of electricity per month at a lower price. But once that amount is exceeded the price jumps up. In the winter (between November and April), customers can use 1,000 kWh at a lower price. And in the summer (May to October), customers can use 600 kWh at a lower price.
After a recent survey, Hydro One discovered that fewer than half of its customers are aware of the tiered plan or the “ultra-low” overnight plan. The corporation has introduced an online calculator to help customers select the best plan for them. The calculator considers where a customer lives and how much electricity they use per month, determining which plan makes the most financial sense.
“As their trusted energy advisor, we want our customers to know we have the insights and tools to help them make the right choice when it comes to their electricity plans,” said Teri French, the executive vice president of safety, operations, and customer experience at Hydro One, in a statement. “We know that choice and flexibility are important to our customers.”
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