Navigating Ontario’s Electricity Rates: TOU vs. Ultra-Low Overnight
A practical guide to understanding your rate plan — and how shifting household chores to cheaper hours can meaningfully lower your monthly hydro bill.
Ontario electricity rates jumped approximately 29–30% on November 1, 2025 — the largest single increase since 2019. For the average household using 700 kWh per month, that translates to roughly $15–$25 more per month. Higher-consumption homes (1,000+ kWh) are absorbing $25–$40 extra each billing cycle.
The good news: the Ontario Energy Board gives residential customers the ability to choose their pricing plan, and the right plan — combined with simple habit shifts around laundry, dishwashing, and charging — can offset a meaningful chunk of that increase. This guide breaks it all down in plain language.
The Three Electricity Rate Plans in Ontario
Most Ontario households fall under the Regulated Price Plan (RPP), which is managed by the OEB. Under the RPP, eligible residential customers can currently choose from three pricing structures:
All three plans apply to the electricity line of your bill only. Delivery charges, regulatory charges, and HST are separate and largely fixed regardless of which plan you choose.
What about the Ontario Electricity Rebate (OER)?
Effective November 1, 2025, the provincial government increased the OER credit to 23.5% (up from 13.1%). For a typical household using 700 kWh/month, this works out to approximately $36 off your bill each month. The rebate is applied automatically — you don’t need to apply for it.
When Are the Cheap Hours? A Visual Guide
Understanding the hours matters more than the rates themselves. Here’s a side-by-side look at how each weekday time block is priced on TOU vs. ULO during the current Winter season (Nov 1, 2025 – Apr 30, 2026).
Time-of-Use (TOU)
Ultra-Low Overnight (ULO)
Weekends and holidays are always cheaper
On both TOU and ULO, weekends and Ontario statutory holidays are off-peak all day. On TOU that means 9.8¢/kWh all Saturday and Sunday. On ULO, weekends run 7.6¢/kWh from 7 AM to 11 PM, and the ultra-low 3.9¢ overnight rate still applies from 11 PM to 7 AM.
TOU vs. ULO: Key Differences at a Glance
| Feature | TOU | ULO |
|---|---|---|
| Cheapest rate | 9.8¢/kWh (off-peak) | 3.9¢/kWh (ultra-low overnight) |
| Cheapest hours (weekday) | 7 PM – 7 AM | 11 PM – 7 AM |
| On-peak rate | 20.3¢/kWh | 39.1¢/kWh |
| On-peak window (weekday) | 7–11 AM & 5–7 PM (winter) | 4–9 PM (all year) |
| Weekend rate (daytime) | 9.8¢/kWh (off-peak all day) | 7.6¢/kWh (7 AM–11 PM) |
| Seasonal schedule changes | ✔ Yes (summer & winter periods) | ✔ No (same hours year-round) |
| Best for EV charging | ▲ Good after 7 PM | ✔ Excellent after 11 PM |
| Risk if you use power at 4–9 PM | Low–moderate (20.3¢) | ✖ Very high (39.1¢) |
| Forgiving for average schedules | ✔ Yes | ✖ Requires strict overnight shifting |
| OEB estimated annual savings (eligible households) | — | Up to $90/year |
ULO’s on-peak rate is nearly double TOU’s
ULO’s cheapest rate (3.9¢) is exceptional — but its on-peak rate of 39.1¢/kWh is the highest residential rate in Ontario. If you routinely cook dinner, run the dishwasher, or use the dryer between 4 PM and 9 PM on weekdays without changing those habits, ULO can significantly increase your bill. This plan rewards discipline.
Which Plan Is Right for Your Household?
The Flexible Shifter
- Runs laundry and dishes after 7 PM
- Doesn’t own an EV (yet)
- Has variable daytime energy use
- Wants moderate savings without strict overnight discipline
- Prefers a simpler, forgiving plan
The Overnight Power User
- Charges an EV nightly after 11 PM
- Shift worker or night owl household
- Can reliably avoid 4–9 PM on weekdays
- Runs high-draw appliances after 11 PM
- Wants the absolute lowest per-kWh rate overnight
For most Ontario families — especially those with kids and a 5–9 PM dinner-and-homework rush — TOU is the safer default. The ULO plan has a steeper penalty for slipping up during peak hours. That said, for EV owners committed to overnight charging, ULO’s 3.9¢/kWh overnight rate is genuinely remarkable.
EV charging: the ULO math
Charging a typical electric vehicle overnight on ULO (3.9¢/kWh) costs roughly $1.50–$2.00 per full charge, compared to $4–$5 on TOU off-peak. For households charging 3–4 times per week, that’s a potential saving of $300–$400 per year on EV charging alone.
How to Save: Shifting Household Chores to Cheaper Hours
The single most effective action most Ontario households can take is moving their highest-draw appliances — washers, dryers, dishwashers — to off-peak or overnight windows. Here’s what to shift, and when.
Laundry (Washer + Dryer)
The dryer is typically the largest electricity consumer in a household wash cycle, drawing 4–6 kWh per load. Running two loads per week during on-peak (TOU) vs. off-peak adds up quickly.
💰 Estimated Annual Laundry Savings (2 loads/week)
Use your washer’s delay-start feature
Most modern washing machines include a delay-start timer. Set it before bed so your wash cycle finishes around 7 AM (TOU off-peak ends) or during the overnight ultra-low window (ULO). Many dryers also have this feature — or simply transfer clothes to the dryer first thing in the morning before 7 AM if you’re on TOU.
Dishwasher
A standard dishwasher draws roughly 1.2–1.8 kWh per cycle. The heated dry setting adds extra draw, so air-drying is worth enabling if your model allows. Run it right after dinner — but wait until after 7 PM on TOU, or after 11 PM on ULO, to capture the cheapest rate.
Electric Water Heater
If you have an electric water heater (common in Ontario apartments and older homes), it can draw 3–5 kWh per day. Many modern smart water heaters can be programmed to heat water primarily during off-peak or overnight windows, then maintain temperature passively through the day.
Other High-Draw Appliances
- ⚡Space heaters: Avoid using electric space heaters during TOU on-peak (7–11 AM and 5–7 PM in winter). If you rely on electric heating, ask your utility about OECM or low-income energy programs.
- ⚡Air conditioner (summer): On summer TOU, on-peak shifts to 11 AM–5 PM on weekdays. Pre-cool your home before 11 AM, then raise the thermostat slightly during peak hours.
- ⚡Oven and stove: Cooking is harder to shift, but using a slow cooker or Instant Pot during off-peak and batch-cooking on weekends (all off-peak on TOU) is an effective strategy.
- ⚡Pool pump (if applicable): Schedule your pool pump timer to run overnight or on weekends — this alone can save $80–$150 annually for pool owners.
- ⚡EV charging: Set your car charger to start after 7 PM (TOU) or ideally after 11 PM (ULO). Most EVs have built-in scheduling in the car’s app or charge settings.
A Practical Day-by-Day Strategy
Rather than trying to memorize the rate tables, here’s a simple decision rule you can follow:
The TOU household rule of thumb
On weekdays, avoid running your big appliances between 7–11 AM and 5–7 PM (winter) or 11 AM–5 PM (summer). Everything else — evenings after 7 PM, overnight, and all weekend — runs at the cheapest rate. Simple.
The ULO household rule of thumb
Run everything you can between 11 PM and 7 AM — every day, year-round. Avoid 4–9 PM on weekdays at all costs (39.1¢). The middle of the day is mid-peak (15.7¢) — tolerable, but not ideal. Weekends from 7 AM to 11 PM are a decent 7.6¢.
Sample Week: TOU-Optimized Schedule
| Day | Task | Best Window | Rate |
|---|---|---|---|
| Monday | Run dishwasher | After 7 PM | 9.8¢ |
| Tuesday | Laundry (washer + dryer) | After 7 PM or overnight | 9.8¢ |
| Wednesday | Charge EV | After 7 PM (ideally 11 PM+) | 9.8¢ |
| Thursday | Second laundry load | Delay-start to finish by 7 AM | 9.8¢ |
| Friday | Batch cooking | After 7 PM | 9.8¢ |
| Saturday | Any heavy tasks (cleaning, baking, etc.) | All day | 9.8¢ |
| Sunday | Meal prep, laundry catch-up | All day | 9.8¢ |
How to Change Your Rate Plan
Switching between TOU, ULO, and Tiered is a customer right — and it’s free. Here’s how to do it:
Use the OEB’s Bill Calculator
Before switching, go to oeb.ca/choice and use the online bill calculator. Enter your actual usage data (from a recent bill) to see which plan would have cost you less.
Log in to your utility’s online portal
Toronto Hydro, Hydro One, Alectra, Hydro Ottawa, and most Ontario distributors allow you to switch your plan online via your account. Look for “My Account” or “Customer Choice.”
Submit your plan change request
The change typically takes effect at the start of your next billing cycle. If you submit less than 10 days before your next billing period starts, it may not apply until the second billing period.
Confirm via your next bill
Check the “Your Electricity Charges” section of your bill. You’ll see the rate breakdown matching your new plan (e.g., Ultra-Low Overnight, Mid-Peak, On-Peak instead of the three TOU tiers).
Switch back at any time
There’s no lock-in. If you switch to ULO and find it isn’t working for your household, you can switch back to TOU or Tiered. The OEB allows customers to change their plan at any time.
Enable smart home monitoring
If your utility supports it (Hydro One and Toronto Hydro both do), enable usage tracking through their app. Seeing your hourly consumption broken down by rate period is the fastest way to identify where your peak-hour spending is going. Hydro One’s My Energy dashboard shows exactly which hours drove your bill highest each month.
If Your Budget Is Stretched: Ontario Bill Support Programs
If you’re struggling with your electricity bill, there are several Ontario programs worth knowing about:
- 🤝Ontario Electricity Support Program (OESP): A monthly on-bill credit for lower-income households. Eligible customers receive between $35 and $113 per month depending on household income and size. Apply at ontarioelectricitysupport.ca.
- 🤝Low-income Energy Assistance Program (LEAP): Emergency financial assistance for customers who are behind on their electricity or natural gas bills. Administered through local social service agencies — contact your utility for referrals.
- 🤝Winter Disconnection Ban: Ontario law prevents utilities from disconnecting residential customers for non-payment from November 15 to April 30 each year. If you’re in arrears, call your utility and ask about a payment arrangement.
- 🤝Indigenous Support Program: Additional energy bill relief for eligible Indigenous households — contact your utility or oeb.ca/billhelp for details.
The Bottom Line
Ontario’s electricity rates rose sharply in 2025, and they’re unlikely to reverse course as demand grows and infrastructure investment continues. But the rate structure itself gives you real levers to pull:
- ✅Stay on TOU if you’re a typical household — and simply shift laundry, dishwashing, and EV charging to after 7 PM or weekends. This alone can save $50–$100+ annually with minimal lifestyle change.
- ✅Switch to ULO if you own an EV, charge overnight after 11 PM, and can reliably avoid heavy appliance use between 4–9 PM weekdays. The 3.9¢/kWh overnight rate is genuinely the cheapest electricity price in Ontario’s history.
- ✅Use the OEB’s bill calculator before switching — plug in your real usage numbers and let the math decide, not guesswork.
- ✅Apply for OESP if your household income qualifies — it’s an automatic monthly credit that doesn’t require ongoing action once approved.
Small habit shifts around when you run appliances won’t transform your finances on their own — but combined with the right plan, they’re one of the few areas where a low-income household has real control over a fixed recurring cost. That matters.
Sources & Disclaimer: Electricity rates cited in this article are set by the Ontario Energy Board (OEB) and are effective November 1, 2025 through April 30, 2026 under the Regulated Price Plan (RPP). Summer 2026 rates will be set by the OEB and take effect May 1, 2026. Delivery charges, regulatory charges, and HST are not reflected in the electricity-line rates cited above and vary by local distribution company. Savings estimates are illustrative and based on typical appliance draw figures. Always use the OEB’s official bill calculator before switching plans. This article is published by Budgeting Tips for general informational purposes and does not constitute professional financial or energy advice.
