What to know
- The Ontario Electricity Rebate (OER) drops from 23 per cent to 15.7 per cent on November 1, nearly 8 per cent lower.
- A typical residential customer using 700 kWh/month will now save $23 per month, down from $36, because of the reduced rebate.
- All residential, small business, and small- and mid-sized farm customers receive the rebate automatically; larger farms must submit a form.
- While electricity rates are lower for all price plans, overall bill savings will be smaller because the rebate is reduced.
Ontario’s electricity rates are dropping in November, but households could still face higher heating bills this winter. Here’s what you need to know.
In addition to reducing winter electricity prices, the Ford government’s Ontario Electricity Rebate (OER) will change to 15.7 per cent, nearly an eight per cent drop, effective Nov. 1.
Residential customers, small businesses and small to mid-sized farming businesses will receive the rebate automatically. However, large farming businesses exceeding 50 kW or 250,000 kWh annually must submit a self-declaration form.
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The OER says the typical residential customer who uses 700 kilowatt-hours (kWh of electricity per month will see their bills decrease by $23 monthly, instead of $36.
Residential, small businesses and farm customers can choose from three different price plans:
- Time-of-Use (TOU), where electricity costs change depending on the time of day, season, and day of the week rather than staying at a flat rate.
During off-peak times —weekdays from 7 p.m. to 7 a.m. and all day on weekends and holidays —the electricity rebate will be 9.1 cents per kWh, down from 9.8 cents.
Mid-peak (weekdays between 11 a.m. and 5 p.m.), the electricity rebate will be 14.6 cents per kWh—previously 15.7 cents.
During on-peak hours (weekdays between 7 and 11 a.m. and 5 to 7 p.m.), the electricity rebate will be 18.9 cents per kWh (previously 20.3 cents).
- Ultra Low Overnight (OLU) is a time-of-use rate option designed to encourage off-peak energy use, ideal for those who run major appliances or use a lot of electricity after 11 p.m.
Every day between 11 p.m. and 7 a.m., the new rate is 3.7 cents per kWh, previously 3.9 cents.
Off-peak weekends and holidays between 7 a.m. and 11 p.m. will be 9.1 cents per kWh, down from 9.8 cents.
Mid-peak on weekdays between 7 a.m. and 4 p.m., or 9 p.m. and 11 p.m., the rebate is 14.6 cents per kWh, previously 15.7 cents.
On weekdays, the rebate during on-peak hours between 4 and 9 p.m. went down from 39.1 cents to 37.7 cents per kWh.
- A tiered price plan charges a flat rate for electricity up to a specific monthly limit and a higher rate for any electricity above that threshold.
The OEB explains on its website that the seasonal change in the threshold for residential customers provides an additional 400 kWh of electricity per month at the lower price in the winter.
For residential customers, the first 1,000 kWh per month, and for non-residential customers, the first 750 kWh, is 11.2 cents per kWh, down from the previous 12 cents.
For the second tier, each additional kWh is 13.2 cents per kWh, down from 14.2 cents.
Check your electricity usage to see what’s most cost-effective for you—especially since the rebate has gone down.
