Residential and small business customers 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.
The OEB sets TOU and tiered prices based on its forecast of the cost to supply households and small businesses over the next 12 months. The next rate adjustment is scheduled to take place on November 1, 2023.
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, 2022, residential consumers are charged:
8.7¢ per kWh for consumption up to 1,000 kWh/month
10.3¢ per kWh for consumption above 1,000 kWh/month
Effective November 1, 2022, small business consumers are charged:
8.7¢ per kWh for consumption up to 750 kWh/month
10.3¢ per kWh for consumption above 750 kWh/month
For more information about either TOU rates or tiered pricing, please refer to the Ontario Energy Board’s electricity rates page.