Hour-of-use pricing had been abandoned for a large portion of residential bills during the pandemic with a single price set for all hours of the day. The decision, which took effect on June 1, was intended to “support families, small businesses and farms as Ontario plans the safe and gradual reopening of the province,” the OEB said at the time.
Fixed pricing meant that customers’ bills reflected how much energy they used, rather than when they used it. Customers were billed 12.8 cents / kWh regardless of how long they were used.
Starting in November, the province says customers can choose between hour of use and tiered pricing. Hour-of-use plan rates will be 21.7 cents / kWh during peak hours, 15 cents / kWh for mid-peak use, and 10.5 cents / kWh for off-peak use .
Customers who choose tiered pricing will pay 12.6 cents / kWh for the first 1,000 kWh each month, and then 14.6 cents / kWh for any power used beyond that.
The energy board says the price increase reflects “a combination of factors, including those associated with the COVID-19 pandemic, which affected demand, supply costs and prices in the summer. and in the fall of 2020 ”.
Asked Tuesday about his reaction to the move, Premier Doug Ford said, “I hate it,” adding that the province inherited an energy “mess” from the previous Liberal government and “was chipping away at it.”