Time of Use: A New Way to Think About Electricity
Phase-in of Time-of-Use Electricity Prices Underway for Burlington Hydro Customers
BURLINGTON, ON – January 6, 2012 – In a move mandated by the Province of Ontario and the Ontario Energy Board, every Burlington Hydro residential and small commercial customer will have been switched to Time-of-Use (TOU) pricing by February 28th, 2012. Burlington’s two-month roll out of TOU began January 2nd.
The switch to the new approach to electricity costs means all Burlington households and most institutions and businesses will be charged different rates, depending on the day of week , time of day and the season.
The timing of the migration to TOU, which for some Burlington Hydro customers started January 2nd, was conveyed through billing inserts issued to all customers in the Fall. The specific TOU start dates vary for customers depending on their billing cycle.
The phased-in approach to the billing ensures customers will not be billed based on both the old and new pricing on the same electricity bill to avoid confusion.
TOU electricity pricing, applicable province-wide, is a part of the Ontario government’s plan to create a culture of energy conservation. TOU prices are based on which times of day, days of the week and the season that experience the highest and lowest electricity demands. When demand and production costs are at their highest, the prices will be higher; when costs go down, so will the prices. TOU prices are set by the Ontario Energy Board and are adjusted every six months.
Winter TOU periods and prices in effect until April 30th, are as follows:
- Off-Peak - 6.2 cents per kWh – Weekdays 7 pm to 7 am, and all-day on Weekends and Statutory Holidays
- Mid-Peak - 9.2 cents per kWh – Weekdays 11 am to 5 pm
- On-Peak – 10.8 cents per kWh –Weekdays 7 am to 11 am & 5 pm to 7 pm
From May 1st to October 31st, new TOU periods come into effect.
Getting Smart About Smart Meters
Your Smart Meter is a key part of Ontario’s new smart metering system – and of building a culture of conservation across this province.
You will discover that with smart metering, you’ll have new options for managing your electricity costs. You will also learn that if we all make some small changes to the way we use electricity; we can have a positive impact – both on the environment and on Ontario’s energy system.
Why Did Ontario Introduce Smart Meters?
Smart Meters will help Ontario meet its energy needs.
Between now and 2025, Ontario must build almost a whole new electricity system. This includes replacing about 80% of our current generating facilities as they retire over time, and expanding the system to meet our future growth.
That’s why Ontario is introducing new tools – like Smart Meters – that can help. Smart Meters will encourage us all to think more about how and when we use electricity. Smart Meters will help smooth peak demand.
When we’re all using a lot of electricity at the same time we create ‘peak demand’ periods. Supplying electricity at those peak periods has a range of impact:
- adds to our electricity costs – because higher demand often means higher prices
- It’s hard on the environment – because meeting peaks may require the building of additional electricity generation plants.
- It adds to the amount of new generation, transmission and distribution infrastructure Ontario must build; and consumers must pay.
- It puts a strain on our electricity system.
