Time-of-Use Pricing

What is the time-of-use pricing plan for smart meters?

Under the current electricity price plan (November 1, 2008), consumers who purchase electricity under the Regulated Price Plan pay 5.6 cents/kWh for the first 1000 kWh of electricity consumed each month and 6.5 cents/kWh for electricity used above that amount.

Once the new time-of-use rates come into effect, consumers with a smart meter (and who do not have a contract with an electricity retailer) will have the opportunity to save themselves some money. By taking steps to minimize their electricity usage during peak hours and shifting electricity usage to times when electricity costs are cheaper, consumers will be able to directly impact their electricity bills.

Under the time-of-use price plan for smart meters established by the Ontario Energy Board, the price for electricity will vary based on the period during the day when electricity is actually used (see chart below). The periods are:

• Off-peak - when demand for electricity is lowest
• Mid-peak - when demand is moderate
• On-peak - when demand for electricity is highest

These periods will be different in the summer than they are in winter.

With time-of-use pricing and a smart meter recording when power is actually used, utility companies will charge consumers lower rates for electricity consumed during off-peak hours, and higher rates during on-peak hours when the cost of power is higher.

Note: For the purpose of Time-of-Use pricing, a "holiday" includes the following days: New Year's Day, Family Day, Good Friday, Victoria Day, Canada Day, Civic Holiday, Labour Day, Thanksgiving Day, Christmas Day and Boxing Day. When any holiday falls on a weekend (Saturday or Sunday), the next weekday following is to be used in lieu of the holiday.

• Time of Use Charts for Electricity download - click here

How can consumers find out about their energy consumption?

A smart meter will begin recording a household's hourly energy usage as soon as it is installed. Horizon Utilities is currently testing a web-based system that will provide customers with the ability to review their energy consumption online. Consumers who are outfitted with a smart meter will eventually be provided with access to this system. Customers will also be able to access their information over a telephone system.

Tips for Shifting Load to Mid-Peak and Off-Peak Hours