New Ontario Hydro Summer Rate Changes Effective May 1

Last Updated On 18 April 2026, 7:54 AM EDT (Toronto Time)

Ontario households could see higher electricity bills starting Friday, May 1, 2026, as the Ontario Energy Board shifts to its summer Regulated Price Plan structure.

While the per-kilowatt-hour rates set on November 1, 2025 remain in effect through October 31, 2026, two structural changes hitting on May 1 will functionally raise monthly bills for most Ontarians.

On-peak hours are shifting to the middle of the day when air conditioning usage is highest, and the threshold for Tiered pricing is dropping from 1,000 kilowatt hours to 600 kilowatt hours per month.

The combined effect means higher per-hour electricity costs for daytime consumption and faster entry into the more expensive Tier 2 rate band for households on the Tiered plan.

The changes arrive six months after Ontario absorbed its largest residential electricity rate increase since 2019.

On November 1, 2025, the Ontario Energy Board approved increases of roughly 29 to 30 percent across all three Regulated Price Plan options, with the provincial government responding by raising the Ontario Electricity Rebate from 13.1 percent to 23.5 percent to partially offset the impact.

That rebate continues to apply in summer 2026.

Even so, it is estimated the typical household using 700 kilowatt hours per month is now paying 15 to 25 dollars more per month compared to October 2025 levels, with higher-consumption homes absorbing 25 to 40 dollars more.

The May 1 structural shift compounds this earlier increase for most households.

What Is Changing on May 1, 2026

Three distinct changes will take effect across the province on Friday, May 1, 2026, for residential and small business customers on the Regulated Price Plan.

Summer Time of Use periods begin.

During peak hours, shifts are from late afternoon to midday, running weekdays from 11 AM to 5 PM.

Mid-peak periods move to 7 AM to 11 AM and 5 PM to 7 PM on weekdays.

Off-peak applies from 7 PM to 7 AM on weekdays plus all hours on weekends and statutory holidays.

Tiered threshold drops by 40 percent.

Residential customers on the Tiered plan will move from Tier 1 to the higher Tier 2 rate after 600 kilowatt hours of monthly consumption, down from 1,000 kilowatt hours in winter.

Small business Tiered customers see their threshold drop from 750 kilowatt hours to the same 600 kilowatt hour threshold.

Ultra Low Overnight rates and periods remain unchanged.

The ULO plan operates identically year round, with the 3.9 cent per kilowatt hour overnight rate continuing between 11 PM and 7 AM daily.

Ontario Summer Time of Use Rates and Hours for 2026

Time of Use pricing remains the default for most residential customers in Ontario.

Rates are split into three time bands that reflect when electricity demand is highest and most expensive to produce.

The per-kilowatt-hour rates were locked in on November 1, 2025 and apply until October 31, 2026.

Period	Hours (Summer)	Rate
Off-peak	Weekday 7 PM to 7 AM plus all weekends and holidays	9.8 cents per kWh
Mid-peak	Weekdays 7 AM to 11 AM and 5 PM to 7 PM	15.7 cents per kWh
On peak	Weekday 11 AM to 5 PM	20.3 cents per kWh

The shift of on-peak to midday reflects summer electricity demand patterns.

As temperatures climb across southern Ontario, air conditioning becomes the primary driver of grid demand between late morning and early evening.

The OEB calibrates its summer on-peak window to align with this demand surge.

For comparison, winter peak hours ran from 7 AM to 11 AM and 5 PM to 7 PM on weekdays, when heating and household activity were highest in the morning and evening.

The summer schedule essentially swaps those morning and evening windows with the midday peak block, turning what was previously off peak into the most expensive part of the weekday.

Tiered Pricing Threshold Cuts Tier 1 Allowance By 400 kWh

Tiered pricing rewards households that can keep monthly consumption below a defined threshold.

Customers pay the lower Tier 1 rate up to the monthly threshold and then the higher Tier 2 rate for any consumption beyond that point.

The monthly threshold changes twice per year, on May 1 and November 1.

Season	Residential Threshold	Tier 1 Rate	Tier 2 Rate
Winter (Nov 1, 2025 to Apr 30, 2026)	1,000 kWh	10.3 cents per kWh	12.5 cents per kWh
Summer (May 1 to Oct 31, 2026)	600 kWh	10.3 cents per kWh	12.5 cents per kWh

A household consuming 1,000 kilowatt hours in a winter month pays the Tier 1 rate on every single kilowatt hour.

That same household consuming 1,000 kilowatt hours in a summer month pays Tier 1 on the first 600 and Tier 2 on the remaining 400.

The difference of 2.2 cents per kilowatt hour across those 400 kilowatt hours works out to 8.80 dollars in additional charges per month on the electricity line alone.

Higher consumption households feel this change most acutely.

A 1,400 kilowatt-hour household pays Tier 2 rates on the final 800 kilowatt-hours in summer versus only 400 in winter, reflecting a broader drag on monthly bills.

Ultra Low Overnight Rates Hold Steady

The Ultra Low Overnight plan was introduced by the OEB in May 2023 and now offers the most aggressive off-peak rate in Ontario.

ULO operates under four price periods that do not change seasonally, which means the summer shift on May 1 does not alter when or how ULO customers are billed.

Period	Hours	Rate
Ultra Low Overnight	11 PM to 7 AM daily	3.9 cents per kWh
Weekend Off-Peak	All weekend and holiday hours	9.8 cents per kWh
Mid Peak	Weekday 7 AM to 4 PM and 9 PM to 11 PM	15.7 cents per kWh
On Peak	Weekdays 4 PM to 9 PM	39.1 cents per kWh

The ULO plan rewards discipline.

Households that can shift electric vehicle charging, laundry, dishwashing, and hot water heating to overnight hours can reduce their effective per-kilowatt-hour cost below anything available on the Tiered or TOU plans.

However, ULO’s 39.1 cents per kilowatt hour on peak rate is nearly double the TOU on peak rate, making it punishing for households that cannot avoid running appliances during the 4 PM to 9 PM window.

How the May 1 Change Will Hit Your Bill

The combined effect of the summer TOU swap and the tiered threshold drop lands differently on each plan.

Below are estimated monthly bill impacts for three representative Ontario households based on typical summer usage patterns.

Monthly Usage	TOU Plan Impact	Tiered Plan Impact	ULO Plan (no EV)
500 kWh	Slightly higher due to midday AC	Unchanged (under threshold)	Unchanged
700 kWh	3 to 6 dollars higher	2.20 dollars higher	Unchanged
1,000 kWh	6 to 10 dollars higher	8.80 dollars higher	Unchanged
1,400 kWh	10 to 18 dollars higher	17.60 dollars higher	Potentially higher

These estimates reflect only the electricity line on your bill before the Ontario Electricity Rebate is applied.

Delivery charges, regulatory charges, and HST are separate line items that also appear on every Ontario electricity bill and vary by local distribution company.

The summer electricity bill for a typical Ontario household using 700 kilowatt hours now sits in the range of 130 to 160 dollars per month after all charges, with higher-consumption homes using 1,000 kilowatt hours or more paying 180 to 230 dollars per month.

These figures already include the 23.5 percent Ontario Electricity Rebate applied directly to the pre-HST subtotal.

Ontario Electricity Rebate Continues at 23.5 Percent

The Ontario Electricity Rebate was expanded from 13.1 percent to 23.5 percent effective November 1, 2025 as the provincial government moved to soften the blow of the OEB’s approved rate increase.

The rebate is applied automatically to the electricity line of every eligible residential bill and most small business bills.

Customers do not need to apply for the rebate.

On a pre-HST subtotal of 150 dollars, the Ontario Electricity Rebate reduces the amount by 35.25 dollars to 114.75 dollars before HST is calculated.

Over a full year, this rebate is estimated to save the average Ontario household between 320 and 480 dollars, depending on consumption patterns.

The rebate applies to all three Regulated Price Plan options, meaning customers on Time of Use, Tiered, and Ultra Low Overnight all benefit equally on a percentage basis.

Ontario Hydro Pricing Plan Comparison for Summer 2026

Selecting the right pricing plan can change monthly bills by 15 to 25 percent for households with predictable consumption patterns.

The following comparison summarizes all three Regulated Price Plan options effective May 1, 2026.

Plan	Rate Range	Best Suited For
Time of Use	9.8 to 20.3 cents per kWh	Households that can shift usage away from midday and early evening
Tiered	10.3 to 12.5 cents per kWh	Households with steady consumption below 600 kWh per month in summer
Ultra Low Overnight	3.9 to 39.1 cents per kWh	EV owners, night-shift workers, or households with significant overnight usage

Residential customers can switch plans at any time by contacting their local utility or submitting an election form.

The change typically takes effect on the next billing period, provided the request is made at least ten days before the start of the billing cycle.

Why On Peak Is Midday in Summer

The OEB designs seasonal peak windows to match actual grid demand.

In summer, air conditioning across Ontario’s roughly 15 million residents peaks between late morning and early evening as outdoor temperatures climb.

Cooling draws significantly more electricity than heating in Ontario because the province’s grid is heavily dependent on nuclear and hydroelectric baseload supply.

Peak summer demand often exceeds 22,000 megawatts, compared to winter peaks closer to 20,000 megawatts.

To manage this surge, Ontario’s system operator relies on natural gas generation during peak hours, which is more expensive and emits more carbon than baseload supply.

Moving on peak pricing to the midday window is intended to financially encourage conservation during these hours, helping to flatten grid demand and reduce reliance on gas plants.

Households that can precool their homes in the morning, shift laundry to overnight, and avoid running large appliances between 11 AM and 5 PM on weekdays can meaningfully lower their electricity bills.

Practical Tips to Reduce Your Summer Hydro Bill

Small adjustments to daily routines can offset some of the cost impact from the May 1 rate structure change.

Program your air conditioner to reach desired temperatures before 11 AM on weekdays, then let indoor temperatures drift slightly higher during the midday peak window.
Modern thermostats can be scheduled to precool the home automatically.
Run dishwashers, washing machines, and clothes dryers after 7 PM on weekdays or during weekends when off-peak rates apply all day.
Charge electric vehicles overnight.
Even on the standard Time of Use plan, off-peak charging between 7 PM and 7 AM saves significantly compared to midday charging.
Use ceiling fans to circulate cool air, allowing you to set the thermostat slightly higher without sacrificing comfort.
Close blinds and curtains during direct sunlight hours to reduce solar heat gain, which cuts air conditioning demand.
Invest in a smart power bar to eliminate phantom loads from televisions, gaming consoles, and other always-on devices.
Monitor your bills through your local utility’s online portal to spot unusual consumption patterns early.

Comparison With Other Canadian Provinces

Ontario’s residential electricity rates remain higher than Quebec’s and Manitoba’s but are broadly comparable to British Columbia’s and lower than Nova Scotia’s.

Quebec residents pay roughly 7 to 8 cents per kilowatt hour on average, while Manitoba hovers near 10 cents.

British Columbia falls between 12 and 14 cents per kilowatt hour, and Nova Scotia ranges from 17 to 19 cents per kilowatt hour.

Ontario’s blended residential rate after the Ontario Electricity Rebate sits between 13 and 15 cents per kilowatt-hour for most households.

These comparisons exclude delivery and regulatory charges, which vary significantly between utilities and provinces.

Ontario’s delivery charges were adjusted effective January 1, 2026 under the OEB’s latest distribution rate approvals.

How to Switch Your Pricing Plan

Eligible residential and small business customers on the Regulated Price Plan can choose between Time of Use, Tiered, and Ultra Low Overnight at any time with no penalty.

The switch process varies by utility.

Contact your local electricity distributor (Toronto Hydro, Hydro One, Alectra, Hydro Ottawa, or others depending on your location).
Submit the Customer Choice Request Form online, by mail, or in person.
Wait up to ten business days for the change to be processed.
Your new plan takes effect at the start of the next billing period after the change is confirmed.

Customers can switch back to their original plan at any time without fees.

Frequently Asked Questions (FAQs)

Do businesses pay the same time of use rates as residential customers?

Small business customers with peak demand under 50 kilowatts qualify for the Regulated Price Plan and pay the same TOU, Tiered, and ULO rates as residential customers. However, the Tiered threshold for small businesses drops from 750 kilowatt hours in winter to 600 kilowatt hours in summer, which is different from the residential threshold of 1,000 kilowatt hours in winter. Larger commercial and industrial customers are billed under separate rate classes that are not subject to the RPP.

If I signed a contract with an energy retailer, do the May 1 changes still apply to me?

No, Customers who signed a fixed-rate contract with a licensed electricity retailer pay the rate in that contract for the duration of the term. The OEB’s Regulated Price Plan changes do not affect retailer contracts. Fewer than 10 percent of Ontario customers are on retailer contracts, with the remaining 90 percent on the RPP.

Are there assistance programs for low-income Ontario households struggling with hydro bills?

Yes.

The Ontario Electricity Support Program provides monthly credits of 35 to 75 dollars to qualifying low-income households.

The Low Income Energy Assistance Program offers emergency one-time grants of up to 650 dollars for households at risk of disconnection.

Both programs are administered separately from the Ontario Electricity Rebate and require a formal application.

What happens to my bill if I have rooftop solar panels and a home battery?

Customers with net-metered solar installations receive bill credits for excess electricity exported to the grid.

Those credits are applied at the same rate the customer would otherwise pay for consumption during that time period.

Households with solar plus battery storage on the ULO plan can arbitrage the 35.2 cent per kilowatt-hour gap between overnight charging and on-peak discharge, generating additional savings of 1,000 to 1,500 dollars per year depending on system size.

When will Ontario next change the per-kilowatt-hour electricity rates?

The OEB sets Regulated Price Plan per kilowatt-hour rates annually on November 1.

The rates currently in effect through October 31, 2026 will be replaced by new rates on November 1, 2026.

The OEB typically publishes the new rates and accompanying rate structure backgrounder in mid-October ahead of the November 1 effective date.

Fact Checked: All rates, time of use periods, and tiered thresholds cited in this article have been verified against the Ontario Energy Board Regulated Price Plan schedule effective November 1, 2025 through October 31, 2026. Bill impact estimates are illustrative and based on typical appliance usage patterns.

Disclaimer: This article is for informational purposes only and does not constitute professional financial, legal, or energy advice. Rates and rules are subject to change by the Ontario Energy Board.

Sidak Singh Dhanoa

I am a born Canadian citizen and growing daily with my content on INC – Immigration News Canada, developing into an empathetic person and knowing the other side of the story. Born in Toronto, exploring Canada from coast to coast, embracing the nomadic lifestyle.