Ontario is moving forward with a plan to offer consumers lower rates on their electricity bills.
According to a report released Tuesday by the Ontario Energy Board (OEB), an optional plan has been proposed that would offer a super-low hydro rate between the hours of 11 p.m. and 7 a.m. every day. This move could save consumers about $90 a year on their hydro bills.
"Our government has put families back in control of their energy bills, and we will continue this work by delivering a third electricity price plan for customers across Ontario," said Energy Minister Todd Smith. "Introducing the ultra-low overnight electricity rate will help our efforts to make life more affordable for Ontario families by keeping costs down and saving them up to $90 per year, while reducing EV charging costs and supporting the historic investments in our province’s rapidly expanding EV manufacturing sector."
The ultra-low option will be offered along with the previously-announced time-of-use (TOU) and tiered plans. The report's release coincides with Ontario's announcement of the expansion of its electric vehicle (EV) industry, with the new rate supporting EV production by reducing demand during the overnight hours when most people sleep.
Transportation Minister Caroline Mulroney said that not only will the optional ultra-low plan save consumers money, but also benefit those who own EVs.
"This initiative will help support the uptake of EVs in Ontario by making it more affordable for drivers to charge up," said Mulroney. "As we build Ontario’s transportation network for the future, we continue to invest in low-carbon travel options that reduce greenhouse gas emissions and get people to where they need to go."
The provincial government said shifting hydro use to the overnight hours, when there is still excess supply, will help support decarbonization efforts and ultimately save $5.7-million a year in costs associated with the grid system.
The government will now consider the OEB report, with the hope of having the new rate in place by spring 2023.