Londoners who run a dishwasher or charge an electric vehicle overnight will soon be able to opt-in to a new electricity price plan that could save them nearly $100 a year.
The Ontario government announced a new ultra-low overnight electricity price plan on Tuesday for customers of London Hydro, Toronto Hydro, Centre Wellington Hydro, Hearst Power, Renfrew Hydro, Wasaga Distribution, and Sioux Lookout Hydro.
“Our government has put families back in control of their energy bills, and the new ultra-low overnight price plan will give families and small businesses who use more electricity overnight more ways to save,” Energy Minister Todd Smith said in a statement. “Starting May 1 customers can opt-in to the new ultra-low electricity price plan which could save them up to $90 per year, while at the same time making our grid more efficient, helping to reduce costs for all ratepayers.”
Under the new optional plan, the rate for overnight usage would fall to 2.4 cents per kilowatt-hour everyday between 11 p.m. and 7 a.m., while the on-peak rate would jump to 24 cents per kilowatt-hour weekdays between 4 p.m. and 9 p.m. Mid-peak rates would sit at 10.2 cents per kilowatt-hour weekdays from 7 a.m. to 4 p.m. and 9 p.m. to 11 p.m. and weekend off-peak rates would be 7.4 cents per kilowatt-hour from 7 a.m. to 11 p.m.
This new optional pricing structure is the third to be offered by the province. The other two existing plans are time-of-use and tiered. According to provincial officials, the new option will help reduce emissions as nighttime electricity is typically generated from clean, zero-emissions resources like nuclear, hydro, and wind power. It would also increase power grid efficiency with potential capacity cost savings of up to $5.7 million per year, something that could help reduce costs for all Ontario ratepayers, the province said.
“London Hydro is excited to roll out the ultra-low overnight rate and help local customers lower the cost of charging electric vehicles at home,” said Vinay Sharma, CEO of London Hydro. “The province’s initiative will help make the grid more efficient while boosting customer choice for low-rate plans and EV adoption across Ontario.”
The overnight electricity price plan is already being billed as an ideal option for shift workers and people who electrically heat their home or charge electric vehicles. Families and businesses can use the Ontario Energy Board’s Bill Calculator to help determine whether switching to the new rate plan would save them money on their energy bills.
