Residential and small business customers on the Regulated Price Plan (RPP) who are billed under the tiered pricing structure pay a set rate for the electricity they consume up to a kilowatt-hour (kWh) threshold per month. Customers that exceed the monthly threshold are billed at a higher rate per kWh for all additional electricity consumed.
For residential customers, the threshold changes with the season to reflect changing usage patterns – for example, there are fewer hours of daylight in the winter and some customers use electric heating.
The tiers are different for home and business consumers. In the winter period (November 1 – April 30), the tier threshold for residential customers is 1,000 kWh, so that households can use more power at the lower price. In the summer period (May 1 – October 31), the tier threshold for residential customers is 600 kWh. The Tier threshold for small business customers is 750 kWh all year round.
Tiered prices give you the flexibility to use electricity at any time of day at the same price, although that price will change if you exceed the threshold during the month.
The Ontario Energy Board (OEB) determines the new tiered rates at the same time as it sets the time-of-use (TOU) rates and Ultra-low Overnight (ULO) rates.
The Ontario Energy Board sets Regulated Price Plan prices based on its forecast of the cost to supply households and small businesses over the next 12 months. The Regulated Price Plan prices are set by the Ontario Energy Board on November 1 of each year.
Your electricity bill includes the costs for the electricity that you use (billed at Tiered rates), the services your local utility provides, and other costs of delivering electricity. Other charges may also appear on your bill related to your account.
Effective November 1, 2023, Tiered rate customers are charged:
| Tier Thresholds | Winter (Nov. 1 to April 30) | Summer (May 1 to Oct. 31) | Tiered Prices |
|---|---|---|---|
Tier 1 | Residential – first 1,000 kWh/month Small business – first 750 kWh/month | Residential – first 600 kWh/month Small business – first 750 kWh/month | 10.3 ¢/kWh |
Tier 2 | Residential – for electricity used above 1,000 kWh/month Small business – for electricity used above 750 kWh/month | Residential – for electricity used above 600 kWh/month Small business – for electricity used above 750 kWh/month | 12.5 ¢/kWh |
For more information about Time-of-use rates, Ultra-low Overnight rates, or Tiered pricing and to use the bill calculator, please refer to the Ontario Energy Board’s electricity rates page.