Ontario’s new ‘ultra-low overnight’ hydro pricing can be beneficial to some users, especially when used strategically.
Earlier this month, the Ontario government rolled out its new “ultra-low overnight” electricity plan that benefits those who use more energy after-hours—especially those who charge electric vehicles and shift workers.
The new rate came into effect on May 1, 2023. It is 2.4 cents per kilowatt-hour from 11:00 PM to 7:00 AM. That is 67 percent lower than the current off-peak rate.
Officials estimate the average user will save about $90 annually on this program.
However, users should know that signing up for this plan will mean higher rates for on-peak times. You can learn more about the program, on-, mid- and off-peak rates, and calculate your energy bill on the Ontario Energy Board website.
“I think this is a good option for those who charge an EV in the nighttime hours and don’t use a lot of electricity between 4 and 9 PM on weekdays,” said Chris Vilcsak, President of Solution 105. “However, EV users can be strategic and save more than the suggested $90 a year on this new program.”
How much will EV owners save with the ultra-low overnight hydro pricing?
Let’s do the math!
If you can charge your EV at 2.4 cents/kWh, and you use 85 kWH to travel 400 KM and compare that to a gasoline-powered vehicle that uses 7.1 litres/100 KM, the cost at the pump would be only 7.2 cents/litre based on current fuel prices.
Of course, you must include the distribution fees and other regulatory costs on your bill. But, if you added an additional 10 cents/kWH to cover those charges, the comparable cost would still be about 37 cents/litre. That’s incredible savings.
“If you use this program strategically, you could be paying a fuel cost we haven’t seen at the pump since the 1980s! I see it as all part of balancing the system, and price signals like this can certainly be an effective option,” said Vilcsak.
The Ontario Energy Board provides detailed information and descriptions for customers looking to choose a new energy price plan. You can learn more on their website or by watching the video below.