Electricity Cost in Ontario 2026: TOU Rates & Savings

Ontario has the most complex electricity pricing in Canada, with time-of-use rates ranging from $0.076 to $0.158/kWh, delivery charges that nearly double the commodity cost, and a Global Adjustment that funds conservation and renewable energy programs. The average Ontario household pays $140-$200 per month — significantly higher than BC or Quebec. Understanding Ontario's rate structure, choosing between TOU and tiered pricing, and timing your consumption strategically can save $200-$500 per year.

Ontario TOU and Tiered Rate Structure 2026

Ontario offers two pricing options for residential customers: time-of-use (TOU) and tiered pricing. TOU pricing charges different rates depending on when you use electricity — on-peak ($0.158/kWh), mid-peak ($0.122/kWh), and off-peak ($0.076/kWh). Tiered pricing charges a lower rate for the first block of consumption ($0.087/kWh) and a higher rate above the threshold ($0.1015/kWh).

The choice between TOU and tiered pricing depends on your consumption pattern. TOU benefits households that can shift heavy usage to off-peak hours (7 PM-7 AM weekdays, all weekend). Tiered pricing benefits households with consistent consumption that cannot easily shift timing. Most households with EV charging, electric water heating, or programmable appliances save more on TOU.

Ontario electricity bills include much more than the commodity rate. Delivery charges (distribution and transmission) add $0.04-$0.06/kWh. The regulatory charge adds $0.005/kWh. The debt retirement charge adds $0.005/kWh. HST adds 13% to the total. These non-commodity charges mean the actual cost per kWh is 50-80% higher than the posted electricity rate.

The Global Adjustment (GA) is embedded in the commodity rate for residential customers and funds Ontario's electricity infrastructure, conservation programs, and renewable energy contracts. The GA has been the primary driver of Ontario rate increases over the past decade, rising from $0.005/kWh in 2006 to over $0.10/kWh at peak. Government subsidies through the Ontario Electricity Rebate (OER) currently reduce the GA impact by approximately 11.7%.

The Ontario Electricity Rebate (OER) provides an automatic 11.7% discount on the total pre-tax electricity bill for eligible residential customers, farms, and small businesses. The rebate is applied automatically — no application is required. The OER replaces the former Ontario Electricity Support Program (OESP) for general rate relief, though OESP remains available for income-qualified households as an additional $35-$75 monthly credit.

Average Ontario Electricity Bills

The average Ontario household consumes 700-900 kWh per month and pays $140-$200 per month for electricity. This makes Ontario the most expensive province for electricity in Canada after some Atlantic provinces. Single-person apartments with gas heating average $70-$100 per month. Families in detached homes average $160-$220. Large homes with electric heating and central air conditioning can exceed $300 per month in peak seasons.

Northern Ontario households pay slightly more due to higher distribution costs and colder winters. Communities served by Hydro One in Northern Ontario pay approximately 15-20% more per kWh in delivery charges compared to Toronto Hydro customers. Combined with higher heating demand, Northern Ontario electricity bills average $180-$250 per month for electrically heated homes.

The total annual electricity cost for an average Ontario household ranges from $1,700 to $2,400 per year. This has increased approximately 70% over the past decade, far outpacing inflation. The increases have been driven primarily by infrastructure renewal, nuclear refurbishment costs, and renewable energy contract obligations that are passed through to consumers via the Global Adjustment.

Seasonal variation in Ontario bills is moderate. Summer bills peak in July-August due to air conditioning, averaging $160-$220. Winter bills peak in January-February at $170-$240 for electrically heated homes or $130-$170 for gas-heated homes. Spring and fall bills are lowest at $110-$150. The TOU rate schedule shifts seasonally — summer on-peak is 11 AM-5 PM while winter on-peak is 7-11 AM and 5-7 PM.

Low-income households in Ontario can access the Ontario Electricity Support Program (OESP), which provides $35-$75 monthly credits based on household income and size. Indigenous customers living on-reserve receive additional credits of $25-$35 per month. The OESP application is available through 211 Ontario or directly through local distribution companies. Over 200,000 Ontario households currently receive OESP support.

Ontario also offers the Ontario Energy and Property Tax Credit (OEPTC) of up to $1,095 per year for eligible low-income households. This credit is delivered through the tax system as part of the Ontario Trillium Benefit. While not a direct reduction on the electricity bill, it offsets total energy costs for qualifying households.

How to Save on Your Ontario Hydro Bill

Switching to TOU pricing and shifting heavy loads to off-peak hours is the most impactful savings strategy for most Ontario households. Off-peak electricity at $0.076/kWh is 52% cheaper than on-peak at $0.158/kWh. Running your dishwasher, laundry, and EV charger after 7 PM on weekdays (or anytime on weekends) maximizes off-peak savings. A household shifting 30% of consumption to off-peak saves $200-$350 per year.

EV charging in Ontario benefits enormously from TOU pricing. Charging during on-peak hours costs $9.48 per full charge (60 kWh), while off-peak charging costs $4.56 — a savings of $4.92 per charge. For twice-weekly charging, annual savings from off-peak EV charging reach $511. Smart EV chargers with scheduling capabilities automate this optimization.

The Ontario peaksaver PLUS program allows your utility to briefly reduce your air conditioning or electric water heater during peak demand events in exchange for a $75 annual incentive. The reductions are brief (10-15 minutes) and typically unnoticeable. The program helps the grid manage summer peaks while putting money back in your pocket. Enroll through your local distribution company.

Energy efficiency upgrades deliver compound returns because Ontario rates are high. Replacing a 20-year-old refrigerator with an ENERGY STAR model saves 300-500 kWh per year ($40-$80). Switching all lighting to LED saves 500-1,000 kWh ($65-$130). Adding attic insulation from R-30 to R-60 saves 1,000-2,000 kWh on heating ($130-$260). These upgrades also reduce the delivery and regulatory charges proportionally.

Net metering for solar allows Ontario homeowners to offset the commodity charge and a portion of delivery charges. A 8 kW solar system producing 9,600 kWh per year offsets $1,200-$1,800 in annual charges. Ontario does not offer provincial solar rebates, but the federal Canada Greener Homes Grant provides up to $5,000 and the 0% loan covers up to $40,000. Solar payback in Ontario is 8-12 years, shorter than in low-rate provinces.

Consider enrolling in your local utility's conservation programs. Toronto Hydro, Hydro Ottawa, and Hydro One all offer rebates on smart thermostats ($50-$100 rebate), pool pump timers ($25 rebate), and energy efficiency kits (free LED bulbs and low-flow showerheads). These programs are funded through the regulatory charge on your bill — you are already paying for them, so take advantage.

Ontario Electricity for EV Owners

Ontario has the largest EV market in Canada by volume, driven by proximity to major automakers and a growing public charging network. Home EV charging costs $35-$55 per month on TOU off-peak rates for average driving of 1,200-1,500 km per month. This compares to $180-$240 in gasoline costs for an equivalent combustion vehicle — annual fuel savings of $1,500-$2,200.

The TOU rate structure makes Ontario one of the best provinces for EV cost savings. Off-peak charging at $0.076/kWh translates to approximately $1.22 per 100 km for a mid-size EV consuming 16 kWh/100 km. On-peak charging costs $2.53 per 100 km. Gasoline equivalent at $1.55/litre and 8L/100 km is $12.40 per 100 km — 10x more expensive than off-peak EV charging.

Level 2 home charger installation in Ontario costs $1,500-$3,000 including equipment and electrical work. The federal iZEV program does not cover charger installation, but some Ontario utilities offer $500-$1,000 charger rebates through their conservation programs. Toronto Hydro offers $1,000 toward Level 2 charger installation for customers who enroll in their managed charging program.

Ontario does not currently offer a provincial EV purchase rebate, having cancelled the $14,000 rebate in 2018. Ontario EV buyers rely on the federal iZEV rebate of $5,000 for BEVs or $2,500 for PHEVs. Despite the absence of a provincial rebate, Ontario remains the second-largest EV market in Canada because of population size, consumer awareness, and proximity to US EV infrastructure along the 401 corridor.

Public charging infrastructure in Ontario is extensive, with over 5,000 public charging ports across the province. Ontario's Ivy Charging Network (a subsidiary of Ontario Power Generation and Hydro One) operates over 200 DC fast chargers along major highways. Rates are $0.30-$0.45/kWh for DC fast charging. The growing network makes EV ownership practical for longer trips throughout the province.

For condo and apartment EV charging in Ontario, the Condominium Act amendments support EV charger installation by owners. The process requires a request to the condo board with an electrician's assessment. Boards must respond within a reasonable timeframe but can impose conditions regarding installation quality and electrical capacity. Ontario Hydro One provides technical guidance for multi-unit residential charging installations.

Ontario Electricity: Future Rate Outlook

Ontario electricity rates are expected to increase 3-5% annually through 2030, driven primarily by nuclear refurbishment costs (Bruce Power and Darlington), infrastructure renewal, and growing electrification demand. The Ontario Energy Board (OEB) sets rates annually through a public process that balances utility cost recovery with consumer protection.

The Bruce Power nuclear refurbishment agreement will add $1-$2 billion per year in costs through 2033, representing the single largest future rate pressure. The Darlington refurbishment was completed in 2024 at a cost of approximately $12.8 billion. These costs are embedded in the electricity rate for the 30-year operating life of the refurbished reactors.

Electrification of heating and transportation will increase electricity demand by 30-50% by 2035. Ontario's grid has sufficient generation capacity for current demand but will need new supply as natural gas heating is replaced by heat pumps and gasoline vehicles are replaced by EVs. The source of new generation — nuclear Small Modular Reactors (SMRs), renewables, or natural gas peakers — will significantly influence future rate trajectories.

Solar and battery storage adoption by residential customers will increasingly shift costs between participants and non-participants. As more households generate their own electricity and reduce grid purchases, the fixed infrastructure costs are spread across fewer purchasing customers, potentially increasing rates for non-solar households. This dynamic is driving the OEB to consider changes to rate design, including higher fixed charges and demand-based pricing.

Ontario's Industrial Conservation Initiative (ICI) allows large commercial and industrial customers to reduce costs by reducing consumption during the top five peak demand hours annually. This demand response mechanism is gradually being extended to residential customers through smart meter enabled programs. Future residential demand response programs could provide $100-$300 in annual bill credits for participants willing to temporarily reduce consumption during grid stress events.

Conservation and efficiency remain the most cost-effective strategies regardless of future rate direction. Every kilowatt-hour saved avoids not only the commodity cost but also the delivery, regulatory, and debt retirement charges. At Ontario's total all-in cost of approximately $0.20-$0.25/kWh (including all charges), efficiency investments deliver returns of 15-30% annually — far better than most financial investments.

Comparing Ontario LDCs: Toronto Hydro vs Hydro One

Ontario's 60+ local distribution companies (LDCs) charge different delivery rates even though the commodity electricity price is the same province-wide. Toronto Hydro serves 780,000 customers in the City of Toronto with the lowest delivery rates in Ontario — approximately $35-$45 per month in delivery charges for an average household. The dense urban customer base allows Toronto Hydro to spread infrastructure costs across more customers per kilometer of wire.

Hydro One is Ontario's largest LDC, serving 1.4 million customers across rural and suburban Ontario. Hydro One delivery rates are approximately 30-50% higher than Toronto Hydro at $50-$70 per month for equivalent consumption. The higher rates reflect the cost of maintaining thousands of kilometers of distribution lines across sparsely populated areas. Hydro One customers in remote areas may pay even more through the Remote Rate Protection program.

Alectra Utilities (formed from the merger of Enersource, Horizon, PowerStream, and Hydro One Brampton) serves 1 million customers in the 905 region surrounding Toronto. Alectra's delivery rates fall between Toronto Hydro and Hydro One, at approximately $40-$55 per month. Alectra has invested heavily in smart grid technology and offers some of Ontario's most innovative conservation programs.

Ottawa Hydro (Hydro Ottawa) serves 340,000 customers in the National Capital Region. Delivery rates are competitive at $38-$48 per month. Ottawa Hydro operates one of Ontario's largest municipal solar portfolios and offers innovative programs including home energy audit rebates, smart thermostat incentives, and a community solar garden.

When comparing total electricity costs across Ontario LDCs, the delivery charge is the primary differentiator. The commodity rate (electricity price) is identical across all LDCs. A household consuming 750 kWh per month pays approximately $140 per month in Toronto versus $180 per month in rural Hydro One territory — a difference of $480 per year solely due to delivery charge differences.

Moving within Ontario means changing your LDC and your delivery rate. When evaluating housing costs, factor in the electricity delivery charge for your new LDC. The OEB publishes a comparative rate table showing delivery charges for all Ontario LDCs at oeb.ca. This can reveal significant cost differences that affect the true cost of living in different Ontario communities.

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