Time-of-use price periods for electricity users changing November 1

TORONTO, Oct. 26, 2017 /CNW/ - The Ontario Energy Board (OEB) is reminding households and small businesses that as of November 1, 2017, the time-of-use (TOU) price periods are changing, as is the threshold for residential customers that are paying tiered prices. TOU prices will not be changing.

The table below shows the winter Regulated Price Plan (RPP) prices that will be in effect during each TOU period from November 1, 2017 to April 30, 2018. 

TOU price periods (CNW Group/Ontario Energy Board)

TOU price period	Winter hours	TOU prices effective July 1, 2017 through April 30, 2018
Off-Peak	Weekdays from 7 p.m. – 7 a.m. All day weekends and holidays	6.5 ¢/kWh
Mid-Peak	Weekdays 11 a.m. – 5 p.m.	9.5 ¢/kWh
On-Peak	Weekdays 7 a.m. – 11 a.m. and 5 p.m. – 7 p.m.	13.2 ¢/kWh

The table below shows the same set of prices for RPP customers who pay tiered prices:

Price tiers	Tier threshold	Tiered prices effective July 1, 2017 through April 30, 2018
Tier 1	Residential customers: for electricity used up to 1,000 kWh/month Non-residential customers: for electricity used up to 750 kWh/month	7.7 ¢/kWh
Tier 2	Residential customers: for electricity used above 1,000 kWh/month Non-residential customers:  for electricity used above 750 kWh/month	9.0 ¢/kWh

For customers that do not purchase their electricity from their utility, there will be no change to the Global Adjustment (GA) credit on November 1, 2017.

The OEB will reset RPP prices and the GA credit for April 30, 2018 in a way that holds increases to the rate of inflation in accordance with legislation.

About the Ontario Energy Board

The OEB is the independent regulator of Ontario's electricity and natural gas sectors. It makes decisions that serve the public interest. Its goal is to promote a sustainable and efficient energy sector that provides consumers with reliable energy services at a reasonable cost.

Backgrounder

Oct. 26, 2017

Time-of-use price periods shifting to winter season hours on November 1

TOU pricing	With time-of-use (TOU) prices, customers pay prices that generally reflect the value of electricity supply at different times of the day.       There are three time-of-use periods – on-peak, mid-peak and off-peak. Prices are highest during on-peak, lower during mid-peak and lowest during off-peak.   TOU prices encourage households and small businesses to use electricity during lower-cost time periods. This can ease pressure on the provincial electricity system and can also benefit the environment.   Nearly all residential customers and many small business customers on the RPP pay time-of-use prices.
Ratio between on/off peak	The off-peak price (6.5 ¢/kWh) is a little less than half the on-peak price (13.2 ¢/kWh). This pricing encourages customers to conserve when power costs most.
Why prices depend on the time electricity is used	TOU prices are set to be cheapest when demand is lowest: during the evenings, on weekends and on holidays.   In Ontario, when demand is lower, most of the electricity we use comes from power sources such as nuclear generators and large hydroelectric stations. These sources, which are designed to run all of the time, are referred to as "baseload" power.   As daytime begins, more people and businesses turn on their lights, appliances and devices. As the increased demand exhausts all available baseload power, the province turns to sources that generally cost more, such as natural gas-fired plants that can be called into action quickly to meet rising demand. Renewable sources, such as solar and wind, contribute to our supply needs when they are available.
Summer and winter TOU price periods	TOU price periods are different in the summer than they are in the winter.   The difference reflects the seasonal variations in how customers use electricity. During the summer, people use more during the hottest part of the day, when air conditioners are running on high. In winter, with less daylight, electricity use peaks twice: once when people wake up in the morning and turn on their lights and appliances, and again when people get home from work.
Tiered pricing threshold	A small number of residential and small business customers are billed using tiered prices. Under tiered pricing, a customer can use a certain amount of energy each month at a lower price. Once that limit or threshold is exceeded, the price goes up.   The threshold for residential customers is 600 kWh/month in the summer, and increases to 1,000 kWh/month in the winter. The threshold for non- residential customers stays at 750 kWh/month throughout the year.
Help for low-income consumers	Low-income consumers may be eligible for help paying their energy bills through the Ontario Electricity Support Program (OESP) and the Low- Income Energy Assistance Program (LEAP). OESP gives eligible households an ongoing monthly on-bill credit to reduce their electricity bills. LEAP can provide a one-time grant towards electricity or natural gas bills for customers that may be facing disconnection; it is for emergency situations. To find out more and see if you qualify, visit www.oeb.ca/billhelp.
Conservation Tips	The Independent Electricity System Operator and utilities offer a variety of tips, tools and incentives to help customers conserve more. To explore opportunities to better manage your electricity consumption, visit www.kilowattway.ca or contact your utility.

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SOURCE Ontario Energy Board

please visit the OEB website at oeb.ca or contact us directly at 1-877-632-2727 (toll-free); Media Inquiries: Phone: [phone], Email: [email protected]

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