Considering switching to tiered electricity pricing?
After the long freeze of rates of TOU (Time-of-Use) at 12.8 cents/kwh from May 1st until now, TOU rates are about to change back to its normal On-Peak, Off-Peak and Mid-Peak structure. The new rates apply on November 1st under the Regulated Price Plan (RPP). The total bill for a typical residential customer who uses about 700 kwh/month will increase by about 1.97% or $2.24 according to the OEB news release on Tuesday, October 13th, 2020. This small increase is made possible thanks to the Ontario Government Electricity Rebate (OER) increase from 31.8% to 33.2%.
The new TOU rates are:
10.5 cents/kwh for Off-peak
15.0 cents for Mid-peak
21.7 cents for On-peak
The winter season peak hours remain unchanged
The tiered pricing and thresholds for tier one are:
First 1000 kwh/month for residential customers is 12.6 cents/kwh
First 750 kwh/month for non-residential is 12.6 cents/kwh
The tiered pricing and thresholds for tier two are:
Electricity used above 1000 kwh/month for residential customer is 14.6 cents/kwh
Electricity used above 750 kwh/month for non-residential customers is 14.6 cents/kwh
What does that mean for residential and small business customers today? Should they continue to be on TOU if they are on TOU or switch to the tiered structure?
If your residents are working and studying from home and need electricity all day long to complete their home chores during the day, there might be savings for them under the tiered pricing structure.
How can residents determine if tiered is better than TOU for them?
There are excellent tools on the OEB website that can help residents and small business owners. A few bills and the calculator at the link below can help them make an informed decision. Bill Calculators
Read the full news release at the OEB website: news release