The Ontario Energy Board (OEB) and the province of Ontario have revealed the proposed energy prices for the "Ultra-Low Overnight" optional price plan set to be available in April 2023. In the OEB's Report to the Minister of Energy, they explore the potential impact of the new price plan from both an energy and financial perspective along with a discussion on potential decarbonization technologies such as EVs and heat pumps that become much more appealing under the new price plan.
The Details of the Plan
As per the figure above, the proposed prices are about:
Low Overnight: 2.5¢/kWh
Mid-Peak: 11.3¢/kWh
On-Peak: 25.3¢/kWh
Weekend Off-Peak: 8.2¢/kWh
With the Low Overnight rate of about ten times less than the On-Peak rate, consumers that can take advantage of the new optional plan will be able to save on energy costs while contributing to the stability and sustainability of the power system.
The Impacts of the Plan: Decarbonization and Savings Through EV Charging and Heat Pumps
In the report, special consideration is given to fuel switching from combustible fuels to electricity through technology such as EVs for transportation and air source heat pumps for heating. Along with being in line with federal and provincial net-zero carbon goals, EV drivers can save over $2000 yearly on fuel costs which will likely increase EV sales/adoption.
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Sources and Further Reading
Ontario Newsroom - Ontario Advances Work on New Ultra-Low Overnight Electricity Rate
Ontario Energy Board - Report to the Minister of Energy DESIGN OF AN OPTIONAL ENHANCED TIME-OF-USE PRICE
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