The Ontario government is launching a new Ultra-Low Overnight electricity price plan in an effort to help customers keep costs down. The province expects all utilities to offer the plan to customers within six months.
For now, it will be available to customers of London Hydro, Toronto Hydro, Centre Wellington Hydro, Hearst Power, Renfrew Hydro, Wasaga Distribution, and Sioux Lookout Hydro.
Minister of Energy Todd Smith said the new Ultra-Low Overnight price plan will give families and small businesses who use more electricity overnight more ways to save.
It could mean savings up to $90 per year for certain customers including shift workers, those with electric heat, and people who charge their electric vehicle at night.
The Ontario Energy Board has set the new ultra-low overnight rate at 2.4 cents per kilowatt-hour (kWh). That's about 67 per cent lower than the current off-peak rate, but comes in exchange for a higher on-peak rate.
Smith said the new overnight rate is possible because the province has excess clean electricity during overnight hours. The move will allow the province to better leverage Ontario’s clean electricity grid and increasing grid efficiency. The potential capacity cost savings for the electricity system is up to $5.7 million per year, which is expected to reduce costs for all Ontario ratepayers.
“By making better use of the province’s clean grid, our government is taking further action to keep electricity affordable in Ontario,” said David Piccini, Minister of the Environment, Conservation and Parks. “Offering more options for smart electricity use is good news for Ontarians and the environment.”
“As more and more people across the province begin to use EVs, the Ultra-Low Overnight price plan will make it easier and less expensive to charge their vehicles in the evening,” said Vic Fedeli, Minister of Economic Development, Job Creation and Trade. “Ontario continues to strengthen our province’s end-to-end EV supply chain, ensuring that the cars of the future are build right in Ontario by Ontario workers.”