Residential and small business customers who are billed under the tiered pricing structure pay a set rate for the electricity they consume up to an allowable 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.
The tiers are different for home and business consumers. The Ontario Energy Board (OEB) determines the new tiered rates every six months at the same time as it sets the time-of-use (TOU) rates.
TOU and tiered rates are based on a forecast of the expected cost of supply and are adjusted every May 1 (summer season) and November 1 (winter season).
By way of example, effective November 1, 2019, residential consumers under the tiered pricing rate structure are charged:
11.9¢ per kWh for consumption up to 1,000 kWh/month
13.9¢ per kWh for consumption above 1,000 kWh/month
In November 2019, small business consumers are charged:
11.9¢ per kWh for consumption up to 750 kWh/month
13.9¢ per kWh for consumption above 750 kWh/month
On May 1, 2020, the OEB announced that it would keep the winter tier threshold in place in order for customers that are on tiered pricing to have an additional 400kWh/month available at the lower price.
November 1, 2020 rates and thresholds have not yet been announced. We will update this page once they are known.
For more information about either TOU rates or tiered pricing, please refer to the Ontario Energy Board’s electricity rates page.