Ontario’s residential customers and small businesses are charged for electricity in one of three ways: time-of-use pricing, tiered pricing or under a third-party retail contract.
Pricing Models
Time-of-Use
By default, residents and small businesses pay time-of-use rates, which means they pay a higher price when electricity is more expensive to produce (on-peak) and a lower price when it is less expensive to produce (off-peak). During the fall and winter months, on-peak usually occurs in the morning and evening, when lighting and heating are needed most. During the spring and summer months, on-peak usually occurs in the middle of the day, when the sun is hottest and air conditioning use is highest. Visit the OEB for more information about time-of-use rates
Tiered
Residential customers and small businesses can switch to tiered pricing and pay a fixed price per kilowatt hour (kWh) for electricity use up to a certain amount. If the customer uses more than that amount, the price they pay per kWh goes up. Visit the OEB for more information about tiered rates
Most electricity customers in Ontario are billed by a local hydro company, also known as a Local Distribution Company (LDC), for the electricity they use. More than 60 LDCs operate in Ontario. Each one is responsible for delivering electricity to homes and businesses in their service territories.
What LDCs Do
Purchase electricity in Ontario’s wholesale electricity market on behalf of end-use customers in their communities
Build and maintain local infrastructure, including hydro poles and neighbourhood transformers, that delivers electricity to homes, facilities and businesses
