What types of electricity rates price plan does Toronto Hydro offer for residential customers? How can i choose the correct price plan in order to save on my electricity cost bill?

Question

Having lived in a rental place for more than 10 years, i finally got a chance to become a homeowner myself. I realized that homeownership does come with all sort of bills to pay and Electricity bill is just one of them. In the past as a renter, i didn't have to worry about paying some of those bills, as my landlord used to include those utilities bills, together with my monthly rent payment amount.

I knew some renter had to pay utilities bills separately and they were not included in their monthly rental payment amount. I guess i was lucky to have avoided paying those utilities bills for so many years. 

Renting wasn't a bad thing, so long as you find a cheap basement to rent and have a kind landlord to deal with. I have saved quite a good size down payment for purchasing my own house, while i rented a basement close to my workplace. But deep in my heart, i knew that i had to buy my own house one day. I can't carry on living in a rental place.

Renting would be most suitable for someone who constantly moves around a lot to various cities, either for work reason or by choice. They wouldn't want to be tied down to a single location by owning a house at a particular location. 

Coming back to the main point of question, i like to know if by choosing the correct rates price plan with Toronto Hydro, can i save some money on my electricity bill? Some people have mentioned that it is quite possible.

Answer 1

Toronto Hydro offers 2 types of price plans for residential customers in Toronto. Knowing and choosing the correct type of price plan can save you money over the long term. This is something that most customers don't realize and instead they allow Toronto Hydro to choose a price plan for them by default. 

1. Time of Use (TOU) rates:

Under this price plan, there are the Off peak hours, Mid peak hours and On peak hours. During the summer months (May to October), the Off peak hours are weekdays (7pm to 7am) and all days on weekends and holidays.

The Mid peak hours are weekdays 7am to 11am and 5pm to 7pm. The On peak hours are weekdays 11am to 5pm.

As of June 2022, What these mean is that you are charged 8.2 cents per kWh for using Electricity during Off peak hours, 11.3 cents per kWh during Mid peak hours and 17 cents per kWh during On peak hours. 

So depending on what time of day or weekday or weekend, you decide to use electricity, then you are charged according to above mentioned prices. The prices changes during the winter months (November to April) for Off peak hours, Mid peak hours, On peak hours.

2. Tiered Rates:

This pricing rates consist of Tier 1 and Tier 2. As of June 2022, During the summer months (May to October), Tier 1 charges 9.8 cents per kWh any time of day or weekday or weekend, you use electricity upto 600 kWh/month. What this mean is that if you use less than or equal to 600 kWh/month of electricity, then you are charged 9.8 cents per kWh. 

Tier 2 charges 11.5 cents per kWh any time of day or weekday or weekend, you use electricity over 600 kWh/month. What this mean is that if you use more than 600 kWh/month of electricity, then you are charged 11.5 cents per kWh for that portion you used over and above 600 kWh/month of electricity.

Please note that winter months (November to April), the "Tiered" price will change to a different price which will be set by Toronto Hydro.

Now having seen both types of electricity price plan, you can decide which one to choose depending on how much electricity you use each month.

If you use less than 600 kWh/month, then "Tiered" price rates is best to go for, since you will be paying only 9.8 Cents per kWh any time of day or weekend or weekday, upto 600 kWh/month. But if you use more than 600 kWh/month then Tiered price rates will start to become expensive to use.

However the beauty with this "Tiered" price rates is you don't have to worry about what time of day to use electricity to save money. The rates remain same upto 600 kWh/month and changes higher as you use more than 600 kWh/month. 

If you are ok with keeping tab on what time of day electricity is cheaper or expensive, then Time of Use (TOU) price plan will be for you. The only downside is that you will be restricted to using electricity preferably between 7pm to 7am for cheaper electricity. 

Personally i chose "Tiered" price plan, as i don't like to be restricted to using electricity for cheaper price during certain time of the day. Also i barely cross above the 600 kWh/month amount of electricity, which means i get to use cheaper electricity any time of day, week or month. 

In order to choose your preferred Toronto Hydro electricity price plan, you need to do it online at TorontoHydro.com . If you haven't registered with them before, you need to first register for online access. Otherwise if you already have an account with them, then you can simply login.

Once you are logged in, tap on "Account Summary", and then scroll right to bottom of screen. You will see "Change your price plan" button which you need to tap on. Here you can choose your preferred price plan, accept the terms and tap on "Submit". Voila! You have now successfully changed your Toronto Hydro Price Plan now.