- Ontario is launching a new Ultra-Low Overnight price plan starting from May 1, 2023, which provides an ultra-low overnight rate of 2.4 cents per kilowatt-hour (kWh) every day between 11 p.m. and 7 a.m.
- Customers who use more electricity at night can save up to $90 per year by shifting their energy use to the ultra-low overnight rate period, and the plan helps reduce emissions and increase grid efficiency.
- The plan is the third option for electricity customers alongside existing Time-of-Use (TOU) and Tiered plans and aims to encourage the use of clean, zero-emissions resources like nuclear, hydro, and wind power.
The Ontario government is set to launch a new Ultra-Low Overnight price plan, offering customers another option to reduce their energy bills. Starting May 1, 2023, customers of select utilities can opt-in to this new optional electricity price plan. It is designed to provide customers with more ways to save money and take control of their energy bills.
The new Ultra-Low Overnight price plan is the third option for electricity customers, alongside the existing Time-of-Use (TOU) and Tiered plans. This plan aims to provide customers with an opportunity to save up to $90 per year by shifting their energy use to the ultra-low overnight rate period when the province-wide electricity demand is lower.
What is the Ultra-Low Overnight Price Plan?
The Ultra-Low Overnight Price Plan is a new optional electricity price plan that provides an ultra-low overnight rate of 2.4 cents per kilowatt-hour (kWh), every day between 11 p.m. and 7 a.m. Mid-peak rates of 10.2 cents per kWh apply weekdays between 7 a.m. and 4 p.m. and 9 p.m. and 11 p.m. On-peak rates of 24.0 cents per kWh apply weekdays between 4 p.m. and 9 p.m. Weekend off-peak rates of 7.4 cents per kWh apply on weekends and statutory holidays between 7 a.m. and 11 p.m.
Why Was the Ultra-Low Overnight Price Plan Launched?
Ontario’s new electricity pricing structure is the government’s third option for electricity customers, in addition to the existing Time-of-Use (TOU) and Tiered plans. Customers that use more electricity at night, including shift workers and those that electrically heat their homes or charge their electric vehicles, can save up to $90 per year by shifting demand to the ultra-low overnight rate period when the province-wide electricity demand is lower.
Moreover, the delivery of this new ultra-low overnight rate is possible as Ontario continues to have excess clean electricity during overnight hours. Shifting electricity use to these hours will allow the province to better leverage Ontario’s clean electricity grid, increasing grid efficiency, and resulting in potential capacity cost savings for the electricity system of up to $5.7 million per year, helping to reduce costs for all of Ontario’s ratepayers.
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Benefits of the Ultra-Low Overnight Price Plan
The Ultra-Low Overnight Price Plan has several benefits, including:
Savings:
Customers that use more electricity at night can save up to $90 per year by shifting their energy use to the ultra-low overnight rate period.
Reduced Emissions:
An ultra-low overnight rate will help reduce emissions by encouraging the use of more nighttime electricity, which is typically generated from clean, zero-emissions resources like nuclear, hydro, and wind power.
Efficient Use of Clean Energy:
The Ultra-Low Overnight Price Plan helps to make better use of the province’s clean grid, making it possible to shift electricity use to overnight hours when the electricity demand is low.
Increased Grid Efficiency:
Shifting electricity use to overnight hours will allow the electricity system to operate more efficiently, reducing strain on the grid during peak hours and potentially reducing capacity costs for the system.
Improved Control:
Customers have more control over their energy bills by having access to another pricing option that suits their energy usage patterns.
Eligibility for the Ultra-Low Overnight Price Plan
Customers of select utilities in Ontario will be eligible to opt-in to the Ultra-Low Overnight Price Plan. This includes customers of Hydro One, Ontario Power Generation, Toronto Hydro, and several other local distribution companies.
Customers with smart meters will be automatically enrolled in the new Ultra-Low Overnight Price Plan and will have the option to opt-out if they prefer to stay on their current pricing plan. Customers without smart meters will need to contact their local distribution company to have one installed before they can opt in.
How to Opt-in for the Ultra-Low Overnight Price Plan
Customers can opt-in for the Ultra-Low Overnight Price Plan starting May 1, 2023, through their local distribution company. Customers with smart meters will be automatically enrolled, but can choose to opt out if they prefer to stay on their current pricing plan. Customers without smart meters will need to have one installed before they can opt in.
You can find more information by visiting this Ontario Energy Board Website
Quotes
According to Anthony Haines, President and CEO of Toronto Hydro:
“This new pricing option offers customers more flexibility to help manage electricity costs by shifting high electricity-usage activities, like electric vehicle charging, away from peak times. This is one of the many steps we’re taking to prepare our grid for the electrification of major economic sectors like transportation to help Toronto reach net zero. Toronto Hydro is pleased to be one of the first utilities to offer the Ultra-Low Overnight price plan to its customers.”
Vinay Sharma, CEO of London Hydro said:
“London Hydro is excited to roll out the ULO rate and help local customers lower the cost of charging electric vehicles at home. The province’s initiative will help make the grid more efficient while boosting customer choice for low-rate plans and EV adoption across Ontario.”
Teresa Sarkesian, President and CEO of the Electricity Distributors Association, stated,
“The introduction of Ontario’s new Ultra-Low Overnight Electricity Pricing Plan provides customers with another pricing option to fit their business and lifestyle needs. Customers now have additional choices and flexibility to manage their energy costs and consumption. We welcome this initiative as a positive step towards supporting electrification and a sustainable energy future in Ontario.”
Conclusion
The new Ultra-Low Overnight Price Plan is an innovative pricing option that provides customers with more ways to save money and take control of their energy bills. By offering an ultra-low overnight rate, Ontario is encouraging customers to shift their energy use to times when electricity demand is low, which helps to make better use of the province’s clean energy grid and reduce carbon emissions.
