Cheaper Times to Use Electricity in Ontario – and Why It Matters for Your Budget
In This Article:
What’s New in 2025?
With Ontario’s new Time-of-Use (TOU) electricity rates now in effect as of May 1, 2025, understanding when to use power is more important than ever—especially for families, remote workers, and anyone trying to stretch their household budget.
TOU pricing is based on when electricity is used, not just how much. The Ontario Energy Board (OEB) has updated peak periods to reflect real grid demand—meaning daytime power just got more expensive.
Summer TOU Hours (Weekdays: May 1–Oct 31):
- Off-Peak: 7 p.m. – 7 a.m. (7.6¢/kWh)
- Mid-Peak: 7 a.m. – 11 a.m. & 5 p.m. – 7 p.m. (12.2¢/kWh)
- On-Peak: 11 a.m. – 5 p.m. (28.4¢/kWh)
Weekends and statutory holidays are always off-peak, all day long.
Why This Affects Your Monthly Bill
If your household uses around 750 kWh/month (average for Ontario), small shifts in when you use electricity can make a noticeable difference on your bill.
Example – Summer Bill Comparison:
| Usage Type | 2024 Cost | 2025 Cost | Change |
|---|---|---|---|
| On-Peak (30%) | $55.35 | $63.90 | + $8.55 |
| Mid-Peak (35%) | $32.49 | $31.96 | – $0.53 |
| Off-Peak (35%) | $18.94 | $19.99 | + $1.05 |
| Total | $106.78 | $115.85 | + $9.07 |
That’s nearly $100 more per year—just from when electricity is used.
The Logic Behind the Rates
- Off-Peak: Backed by stable, low-cost power sources like nuclear or hydro.
- On-Peak: Relies on pricier natural gas or imports to meet demand.
TOU pricing encourages everyone to shift usage away from peak hours, making the energy grid more efficient and keeping your costs lower.
Simple Ways to Save
- Automate When You Can: Schedule dishwashers, laundry, and EV charging for after 7 p.m. using smart plugs or timers.
- Pre-Cool, Then Coast: Cool your home before 11 a.m. and coast through on-peak hours with a smart thermostat.
- Embrace the Weekend: Save big by shifting energy-heavy tasks to off-peak Saturdays or Sundays.
- Consider the ULO Plan: For night owls or shift workers, Ultra-Low Overnight (ULO) rates at 2.8¢/kWh (11 p.m. to 7 a.m.) might offer huge savings—if at least 40% of use is overnight.
Is TOU Right for You?
Choosing the best plan depends on your usage habits:
- Tiered Pricing: Ideal for households using less than 600 kWh/month.
- ULO: Best for heavy nighttime users.
Use the Ontario Energy Board’s calculator to compare your options.
Bottom Line: Time = Money
Electricity in Ontario isn’t just about how much you use—it’s about when. Simple shifts in your daily habits can lead to significant savings over the year.
Run laundry after dinner, delay your dishwasher until bedtime, or charge your EV overnight. The power to save is in your hands.