Toronto 
Ontario households and small businesses will see lower electricity rates starting November 1, 2026, but that does not necessarily mean their overall bills will decrease.
The Ontario Energy Board (OEB) announced that electricity prices under all three Regulated Price Plan options will drop by approximately four to seven per cent compared with the previous rates.
However, the Ontario Electricity Rebate is also being reduced from 23.5 per cent to 15.7 per cent, meaning customers will receive less government assistance with their electricity bills.
The changes also introduce winter Time-of-Use hours and a higher consumption threshold for customers on tiered pricing.
What Are Ontario’s New Time-of-Use Electricity Rates?
Customers on the Time-of-Use (TOU) plan pay different prices depending on when they use electricity.
All three rates are decreasing compared with the previous pricing period.
| Rate Period | Previous Rate | New Rate | Change |
|---|---|---|---|
| Off-Peak | 9.8¢/kWh | 9.1¢/kWh | -7.1% |
| Mid-Peak | 15.7¢/kWh | 14.6¢/kWh | -7.0% |
| On-Peak | 20.3¢/kWh | 18.9¢/kWh | -6.9% |
The new winter schedule, effective November 1, is:
- Off-Peak: Weekdays from 7 p.m. to 7 a.m., plus weekends and holidays.
- Mid-Peak: Weekdays from 11 a.m. to 5 p.m.
- On-Peak: Weekdays from 7 a.m. to 11 a.m. and 5 p.m. to 7 p.m.
The most expensive hours shift to mornings and early evenings during winter.
What Are the New Ultra-Low Overnight Electricity Rates?
The Ultra-Low Overnight (ULO) plan provides the cheapest electricity rates during overnight hours but charges considerably more during weekday evening peaks.
| Rate Period | Previous Rate | New Rate | Change |
|---|---|---|---|
| Ultra-Low Overnight | 3.9¢/kWh | 3.7¢/kWh | -5.1% |
| Weekend Off-Peak | 9.8¢/kWh | 9.1¢/kWh | -7.1% |
| Mid-Peak | 15.7¢/kWh | 14.6¢/kWh | -7.0% |
| On-Peak | 39.1¢/kWh | 37.7¢/kWh | -3.6% |
ULO pricing periods remain the same throughout the year:
- Ultra-Low Overnight: Every day from 11 p.m. to 7 a.m.
- Weekend Off-Peak: Weekends and holidays from 7 a.m. to 11 p.m.
- Mid-Peak: Weekdays from 7 a.m. to 4 p.m. and 9 p.m. to 11 p.m.
- On-Peak: Weekdays from 4 p.m. to 9 p.m.
What Are Ontario’s New Tiered Electricity Rates?
Customers on tiered pricing pay one rate for electricity consumption up to a monthly threshold and a higher rate for additional usage.
| Rate Period | Previous Rate | New Rate | Change |
|---|---|---|---|
| Tier 1 | 12.0¢/kWh | 11.2¢/kWh | -6.7% |
| Tier 2 | 14.2¢/kWh | 13.2¢/kWh | -7.0% |
For residential customers, the winter Tier 1 threshold increases from 600 kWh to 1,000 kWh per month.
That means households can use an additional 400 kWh each month at the lower Tier 1 rate.
For non-residential customers, the threshold remains 750 kWh monthly.
How Is the Ontario Electricity Rebate Changing?
The Ontario Electricity Rebate (OER), which reduces electricity bills for eligible residential, small business and farm customers, will decline on November 1.
| Rebate Details | Previous | New |
|---|---|---|
| Electricity Rebate | 23.5% | 15.7% |
| Estimated Monthly Rebate for a Typical Household | $36 | $23 |
The rebate reduction amounts to 7.8 percentage points.
For a typical household using 700 kWh monthly, the OEB estimates the new rebate will reduce electricity bills by approximately $23 per month, compared with the $36 monthly rebate estimated in its 2025 announcement. The annual amounts are illustrative projections assuming the respective monthly rebate estimates apply for 12 months.
The OEB says the reduction is possible because regulated electricity prices are decreasing year-over-year.
Will Ontario Electricity Bills Actually Decrease?
Not necessarily.
Although the per-kWh electricity prices are falling, the smaller government rebate will offset some or all of those savings.
The OEB says the overall rate of increase for customer bills will remain consistent with previous years.
The actual change will depend on electricity consumption, the customer’s pricing plan and the local electricity distributor.
Can Ontario Households Switch Electricity Plans?
Yes. Eligible households, small businesses and farms can choose between Time-of-Use, Tiered and Ultra-Low Overnight pricing.
Customers can compare the options using the OEB’s online electricity bill calculator at oeb.ca/choice.
Ontario’s winter disconnection ban takes effect November 15, 2026, and continues until April 30, 2027.
During this period, electricity distributors cannot disconnect residential customers for non-payment.
Customers experiencing difficulties paying their electricity bills can also explore assistance programs through the Ontario Energy Board.
Ontario Energy Board – 2026 Rates / 2025 Rates
