SAVE MONEY2: Time of Use (TOU)

Managing Costs with Time-of-Use Rates: What Is It?

Time-of-Use (TOU) pricing is an Ontario electricity price plan where what you pay per kWh depends on when you use power, not just how much.

The day is split into three price periods:

• Off-peak – lowest price, evenings, nights, weekends, holidays

• Mid-peak – medium price, moderate demand hours

• On-peak – highest price, when demand is strongest Ontario Energy Board+1

The idea is simple: use more electricity when it’s cheap (off-peak), and less when it’s expensive (on-peak), and your bill goes down.

Who Provides Time-of-Use Rates?

TOU isn’t a special deal from one company. It’s part of Ontario’s Regulated Price Plan, set by the Ontario Energy Board (OEB) and applied by almost all local hydro utilities (Toronto Hydro, Hydro One, Alectra, etc.) for residential and small business customers with smart meters.

The OEB sets the TOU prices and the on/off-peak time windows; your local utility simply bills you using those rules.

How Daylight Saving Time Can (Slightly) Help Your Bill

Daylight Saving Time (DST) shifts one hour of daylight into the evening. In theory, that means:

• Less lighting needed during the pricey evening peak

• More natural light during hours when people are home and active

Research shows the real energy savings from DST are small – often around 0.3–0.5% lower electricity use overall, and in Ontario, one study found about a 1.5% reduction during DST.

So DST alone won’t slash your bill—but combining DST with TOU habits can help: run dishwashers, laundry, and charging at off-peak evening and overnight hours, and rely on daylight as much as possible during on-peak times. Over months, that shift can make a noticeable difference on your hydro costs, especially for high-usage households.

Will you be utilizing & integrating TOU?

Source:

https://www.oeb.ca/consumer-information-and-protection/electricity-rates/managing-costs-time-use-rates