Ontario’s electricity rates are changing on November 1, 2026, and at first glance, the news appears encouraging. Electricity prices are coming down. But there is another change buried in the announcement that could leave many households wondering why their hydro bills haven’t decreased.
The Ontario Energy Board (OEB) has confirmed new electricity rates for residential customers, farms and small businesses. The changes affect all three regulated pricing options: Time-of-Use, Tiered and Ultra-Low Overnight.
At the same time, the provincial government is reducing the Ontario Electricity Rebate from 23.5% to 15.7%.
For families already struggling with groceries, property taxes, insurance, heating and other household expenses, the obvious question is:
If Ontario is lowering electricity rates, why might we still end up paying more?
The answer involves more than the cost of generating electricity. Delivery charges, government rebates, when electricity is consumed and the amount used all influence the final bill.
And for rural residents who heat their homes electrically, operate wells, maintain outbuildings or run agricultural equipment, choosing the wrong pricing plan can be particularly expensive.
Let’s examine exactly what is changing, who might benefit and what homeowners can do before winter arrives.
Information current to October 23, 2026. New prices take effect November 1, 2026.
1. Ontario’s New Electricity Rates for November 2026
On October 16, the Ontario Energy Board announced the electricity prices that will take effect on November 1.
These are regulated electricity commodity prices. They do not represent the total delivered cost of electricity shown on a household bill.
Time-of-Use electricity prices
Under Time-of-Use (TOU) pricing, the amount you pay depends on when you consume electricity.
| Price period | 2025 rate | New 2026 rate |
|---|---|---|
| Off-peak | 9.8¢/kWh | 9.1¢/kWh |
| Mid-peak | 15.7¢/kWh | 14.6¢/kWh |
| On-peak | 20.3¢/kWh | 18.9¢/kWh |
All three prices are lower than the rates established in November 2025.
However, the difference between off-peak and on-peak electricity remains substantial.
Under the new schedule, electricity used during an on-peak period costs more than twice as much per kilowatt-hour as electricity used during an off-peak period.
Winter Time-of-Use hours
Beginning November 1, the winter schedule applies.
Weekdays:
- Off-peak: 7 p.m. to 7 a.m.
- Mid-peak: 11 a.m. to 5 p.m.
- On-peak: 7 a.m. to 11 a.m. and 5 p.m. to 7 p.m.
Weekends and designated holidays are off-peak all day.
This schedule continues through April 30, 2027.
That makes early mornings and the period around supper relatively expensive for people using electricity during those hours.
For a household with an electric furnace, electric baseboard heating or a heat pump, these are often times when heating is important.
Unlike running a dishwasher, keeping a home warm in January cannot always be postponed until after 7 p.m.
Source: Ontario Energy Board — October 16, 2026 electricity-rate announcement
2. Tiered Pricing: Could It Be Better for Your Household?
Tiered pricing works differently.
Rather than changing electricity prices according to the time of day, the utility charges one price for electricity used below a monthly threshold and a slightly higher price after that threshold is exceeded.
Beginning November 1:
| Tier | New rate |
|---|---|
| First 1,000 kWh per month for residential customers | 11.2¢/kWh |
| Electricity above 1,000 kWh per month | 13.2¢/kWh |
During the summer, the residential threshold is lower, at 600 kWh per month.
The 1,000 kWh winter threshold is intended to account for increased residential electricity consumption during the colder months.
For non-residential customers on Tiered pricing, the lower-tier threshold is generally 750 kWh per month throughout the year.
That distinction matters for farms and small businesses with separately metered commercial or agricultural accounts.
Why Tiered pricing might appeal to rural homeowners
Consider an older country home with electric heating, a well pump, electric hot water and a workshop.
Its electricity use may not be easily controlled by the clock.
The well pump operates whenever water is needed. The furnace or heat pump operates when heating is required. The water heater replaces hot water after showers, laundry or cleaning.
Under Tiered pricing, the homeowner doesn’t have to worry about the time of day.
Even after exceeding the winter threshold, the additional electricity is charged at 13.2¢/kWh rather than the 18.9¢/kWh on-peak TOU rate.
However, this does not automatically make Tiered pricing cheaper. Households that use substantial electricity overnight and on weekends may still benefit from TOU.
3. Ultra-Low Overnight: Excellent Savings or an Expensive Trap?
Ontario’s Ultra-Low Overnight (ULO) plan was created for customers capable of shifting considerable electricity consumption to overnight hours.
It may be especially attractive to people charging electric vehicles.
The new prices are:
| Price period | New rate |
|---|---|
| Ultra-low overnight | 3.7¢/kWh |
| Weekend off-peak | 9.1¢/kWh |
| Mid-peak | 14.6¢/kWh |
| On-peak | 37.7¢/kWh |
The extremely low overnight price applies daily between 11 p.m. and 7 a.m.
However, weekday electricity consumption between 4 p.m. and 9 p.m. is charged at 37.7¢/kWh.
That’s the trade-off.
A household with an electric vehicle that charges overnight could benefit substantially.
But a household that uses considerable electricity between 4 p.m. and 9 p.m. could lose those savings through higher evening costs.
Example: Charging an electric vehicle
Suppose an electric vehicle consumes 400 kWh of electricity for overnight charging during a month.
At 3.7¢/kWh, its ULO electricity cost would be:
$14.80
At the regular TOU off-peak rate of 9.1¢/kWh, the same 400 kWh would cost:
$36.40
That’s a potential electricity commodity saving of $21.60 for the charging alone, before rebates, delivery-related adjustments and taxes.
But consider another part of the household.
If the home consumes 100 kWh between 7 p.m. and 9 p.m. on weekdays over the month, those kilowatt-hours cost $37.70 under ULO compared with $9.10 under regular TOU.
That represents an additional $28.60.
In this limited example, the extra evening cost exceeds the savings from charging the vehicle overnight.
Actual results depend on the household’s entire hourly electricity-use pattern.
The lowest advertised electricity rate is not necessarily the least expensive electricity plan.
4. The Ontario Electricity Rebate Is Being Reduced
This is arguably the most important part of the November announcement.
The Ontario government is changing the Ontario Electricity Rebate (OER) as follows:
| Rebate | |
|---|---|
| Previous rate | 23.5% |
| From November 1, 2026 | 15.7% |
That’s a reduction of 7.8 percentage points.
The rebate is applied to eligible electricity bill charges before HST, including electricity, delivery and regulatory charges.
It generally appears automatically as a separate credit on eligible residential electricity bills.
The government is not eliminating the rebate. However, it is reducing the proportion of eligible charges covered by it.
According to the OEB, lower electricity prices allow for a reduction in the rebate, with overall bill increases remaining consistent with previous years.
The regulator estimates that the new rebate will reduce the monthly bill of a typical residential customer consuming 700 kWh by approximately $23.
But that statement should not be mistaken for saying customers will save an additional $23 compared with last year.
The $23 is the approximate value of the new rebate itself for the OEB’s typical customer.
Source: Ontario Regulation 328/26 — Amendment to the Ontario Electricity Rebate
5. How Your Hydro Bill Could Rise Even While Electricity Rates Fall
Let’s examine a hypothetical Ontario household using 700 kWh of electricity in one winter month.
For a straightforward comparison, assume the household is on Tiered pricing and has exactly the same electricity consumption in both years.
Also assume its combined delivery and regulatory charges are $65 each month and do not change.
These are illustrative amounts, not a forecast of a specific utility bill.
November 2025 pricing
Electricity:
700 kWh × 12.0¢ = $84.00
Delivery and regulatory charges: $65.00
Subtotal before rebate: $149.00
Ontario Electricity Rebate at 23.5%: −$35.02
Total before HST: $113.99
November 2026 pricing
Electricity:
700 kWh × 11.2¢ = $78.40
Delivery and regulatory charges: $65.00
Subtotal before rebate: $143.40
Ontario Electricity Rebate at 15.7%: −$22.51
Total before HST: $120.89
What happened?
<text>Despite a $5.60 reduction in the electricity commodity charge, the household’s illustrative pre-HST bill increases by approximately $6.90 per month.</text>
The reason is simple: the value of the government rebate fell by more than the electricity charge decreased.
If the same monthly difference continued for 12 months, it would represent approximately $82.80 more annually before HST. That is only a mathematical illustration; actual bills vary by season, consumption, pricing plan and utility.
This example excludes changes to delivery and regulatory rates, loss adjustments, taxes and other possible credits.
It demonstrates why consumers should examine their complete bill rather than looking only at the announced electricity rates.
Source: Ontario Energy Board — Historical Electricity Rates
6. Which Electricity Plan Is Actually Cheaper?
There is no single electricity plan that is cheapest for every Ontario household.
To demonstrate the differences, consider two levels of winter electricity consumption and two hypothetical Time-of-Use patterns.
The calculations below compare electricity commodity charges only.
| Monthly usage and TOU pattern | TOU cost | Tiered cost |
|---|---|---|
| 700 kWh, 60% off-peak / 20% mid-peak / 20% on-peak | $85.12 | $78.40 |
| 700 kWh, 80% off-peak / 10% mid-peak / 10% on-peak | $74.41 | $78.40 |
| 1,400 kWh, 60% off-peak / 20% mid-peak / 20% on-peak | $170.24 | $164.80 |
| 1,400 kWh, 80% off-peak / 10% mid-peak / 10% on-peak | $148.82 | $164.80 |
These are calculated examples, not typical customer forecasts. The same amount of electricity is assumed in each comparison, with TOU consumption allocated according to the stated percentages.
The results show something important.
The total amount of electricity consumed does not determine which plan is most economical. Timing matters.
A household using 1,400 kWh monthly could have an electricity commodity charge approximately $15.98 lower under TOU than Tiered pricing if it can keep 80% of usage in off-peak hours.
But with a different daily routine, Tiered pricing could be cheaper.
These examples exclude the rebate, HST, delivery, regulatory and other utility-specific charges. The OEB’s official bill calculator is the appropriate tool for comparing the complete bill.
Compare your plans using the Ontario Energy Board’s electricity bill calculator
7. Rural Ontario: Why Electricity Costs Can Be Different
For residents of rural Ontario, electricity is not simply about powering lights and televisions.
An acreage or farm property may rely on electricity for essential systems that urban households rarely consider.
These can include:
- Private well pumps and water-treatment equipment.
- Electric heating, heat pumps or electric resistance backup heating.
- Septic pumps and drainage equipment.
- Heated livestock waterers and agricultural water systems.
- Barn ventilation, lighting and refrigeration.
- Workshop compressors, battery chargers and welding equipment.
- Electric water heaters serving larger households.
Many of these systems must operate when needed rather than when electricity is cheapest.
The delivery-charge problem
Rural electricity customers may also face higher distribution costs because power lines, transformers and related infrastructure serve fewer households over a larger geographic area.
The Ontario Energy Board explains that electricity delivery rates vary depending on geography, customer density, infrastructure and the costs of operating local distribution systems.
Ontario has programs such as Rural or Remote Electricity Rate Protection to help offset certain distribution costs, but eligibility and the level of protection depend on the circumstances.
This is why comparing electricity bills between a household in Sarnia, one on a farm outside Thamesville and another in Toronto can be misleading without examining the utility and delivery classification.
Even if households pay the same regulated electricity commodity rates, they may pay different amounts to receive that electricity.
Source: OEB — Understanding Your Electricity Bill
8. What About Houses Heated With Heat Pumps?
Heat pumps are becoming more common across Ontario as homeowners look for alternatives to oil, propane and conventional electric resistance heating.
However, the most economical electricity pricing plan can depend on how the heating system operates.
A properly functioning heat pump may run for long periods during cold weather to maintain indoor temperatures.
A cold-climate heat pump can provide efficient heating at low outdoor temperatures, but its electricity consumption changes as conditions change.
Some installations also use electric resistance backup heat, which can substantially increase electricity consumption when activated.
A family with a heat pump should consider the following before choosing a rate plan.
Time-of-Use: Could be attractive if much of the system’s energy consumption falls overnight or on weekends.
Tiered: May provide greater predictability for households with substantial daytime or early-evening heating loads.
Ultra-Low Overnight: Deserves careful analysis because electricity consumed between 4 p.m. and 9 p.m. on weekdays is expensive.
A homeowner should not simply turn off essential heating during expensive periods to save money.
Any attempt to shift heating demand should consider comfort, system performance, insulation, outdoor temperatures and the possibility of backup heating operating later.
The best approach is to examine actual smart-meter consumption through an entire heating season rather than choosing a plan based only on a summer electricity bill.
9. Farms and Small Businesses Have Different Considerations
The regulated price changes also affect eligible farms and small businesses.
However, commercial and agricultural accounts may have different electricity usage patterns and rate classifications than residential households.
For example, the Tiered pricing threshold for non-residential accounts is 750 kWh per month throughout the year rather than the residential winter threshold of 1,000 kWh.
Farm operations can face demanding electricity loads at particular times.
Milking equipment, refrigeration, ventilation and other agricultural systems may operate according to production requirements or animal welfare needs.
Some activities can be shifted to cheaper hours. Others cannot.
The same applies to a rural repair shop, fabrication business or small manufacturing operation.
A shop operating primarily between 8 a.m. and 5 p.m. will have a different electricity demand profile than a business running equipment overnight.
Farm owners and small business operators should confirm their account classification, eligibility and actual metered usage with their electricity distributor before changing plans.
10. How to Reduce Your Electricity Costs This Winter
There are practical ways to control electricity consumption without sacrificing comfort or safety.
Review your current pricing plan
Check whether your bill identifies TOU, Tiered or ULO pricing.
If you have not reviewed your electricity plan for several years, your household’s usage pattern may have changed.
Examine at least 12 months of consumption
Winter and summer can look very different.
A household with an electric furnace, heat pump, air conditioning or electric vehicle may have large seasonal differences.
Use your utility’s online account, hourly smart-meter data where available and previous electricity bills to understand these patterns.
Shift flexible electricity consumption
Under TOU or ULO, consider scheduling discretionary activities such as laundry, dishwashing and electric vehicle charging during less expensive periods.
Avoid unattended operation of appliances or equipment where the manufacturer warns against it.
For farms and rural properties, look for non-essential loads that can safely operate at different times without affecting animals, food safety or required operations.
Investigate high-consumption equipment
Older electric water heaters, poorly insulated buildings, malfunctioning heating systems and equipment running unnecessarily can increase electricity consumption.
Well-system problems, including excessive pump cycling, may also contribute to energy waste.
Correcting a mechanical or electrical problem can produce savings regardless of the rate plan.
Improve building efficiency
Air sealing, insulation, proper weatherstripping and maintaining heating equipment can reduce energy consumption.
For older rural homes, improving the building envelope may be a more reliable long-term investment than continually changing electricity schedules.
Check for assistance programs
Ontario offers electricity-related support programs, including:
- Ontario Electricity Support Program (OESP), offering on-bill credits for eligible lower-income households.
- Low-Income Energy Assistance Program (LEAP), providing emergency financial assistance for qualifying customers.
- Energy Affordability Program, offering energy-saving measures to eligible households.
Eligibility, available benefits and application requirements vary.
Ontario government — Programs to help manage home energy costs
11. Can Your Electricity Be Disconnected During Winter?
Another important change begins in November.
Under the Ontario Energy Board’s winter disconnection rules, electricity distributors cannot disconnect residential customers for non-payment between November 15, 2026, and April 30, 2027.
That does not mean electricity bills are forgiven or that unpaid balances disappear.
Customers remain responsible for outstanding charges, and they should contact their utility as early as possible if they are having trouble making payments.
The winter protection is particularly important for electrically heated rural homes, where losing electricity can also affect water supply and other essential household systems.
Information about customer protection rules and bill assistance is available through the Ontario Energy Board.
12. How to Change Your Electricity Pricing Plan
Eligible customers can select between TOU, Tiered and ULO pricing.
Changing plans requires notifying the electricity distributor.
Here is the process:
- Find your latest electricity bill and identify your existing plan.
- Review your consumption history, including winter and summer months.
- Use the OEB’s calculator to compare estimated bills.
- Obtain the electricity price-plan election form from your utility.
- Submit the completed form and confirm when the new plan will take effect.
If the utility receives a completed election form at least 10 business days before the next billing period, it must generally implement the change at the start of that billing period. Later requests may take another billing cycle.
Customers can switch plans again, subject to the applicable process.
Not every account qualifies for individual plan choice. Certain sub-metered buildings, accounts without compatible meters and customers on electricity retailer contracts may face restrictions.
Source: Ontario Energy Board — Choosing Your Electricity Price Plan
13. The Bigger Question: Are Electricity Bills Really Becoming More Affordable?
The November changes illustrate a recurring issue in discussions about electricity affordability.
Consumers often hear announcements about electricity prices decreasing, rebates increasing or new programs designed to lower household bills.
But affordability depends on the actual total amount a household must pay.
It is possible for the price of electricity itself to decline while other factors increase the final bill.
It is also possible for a household to lower its electricity bill through conservation or changing pricing plans even when broader costs are rising.
Both can be true.
A meaningful discussion about Ontario electricity affordability should distinguish between:
The commodity price: What the consumer pays for each kilowatt-hour of electricity.
Delivery and regulatory costs: What it costs to deliver electricity and maintain the supporting systems.
Government rebates: The amount covered by provincial financial assistance rather than directly by the electricity customer.
Total household expenditure: The actual amount paid after applicable charges, credits and taxes.
Reducing a provincial rebate while reducing regulated commodity prices changes the balance between what consumers pay directly and what the provincial government supports.
Whether the outcome is better or worse for an individual household depends on actual electricity consumption and billing circumstances.
The appropriate test is not simply whether the announced rate is lower.
It is whether the final bill is affordable and whether consumers have practical ways to manage its cost.
Final Thoughts: Don’t Assume Your Hydro Bill Will Go Down
Ontario’s electricity commodity prices are decreasing on November 1, 2026.
That is a confirmed fact.
The Ontario Electricity Rebate is also decreasing, from 23.5% to 15.7%.
That is equally important.
For some households, adjusting electricity consumption or selecting a different price plan may produce meaningful savings.
For others, especially rural households with significant heating or equipment loads that cannot easily be shifted, the choices may be more limited.
Before winter arrives, homeowners should review their electricity bills, compare available pricing plans and understand how the rebate change affects their costs.
Because the number that ultimately matters isn’t the advertised electricity rate. It’s the amount you have to pay when the hydro bill arrives.
What electricity plan are you currently using — Time-of-Use, Tiered or Ultra-Low Overnight? Have you found one to be cheaper for your household? Share your experience in the comments.
Verified Sources and Further Reading
- Ontario Energy Board — October 16, 2026 Electricity Rate Announcement
- Ontario Energy Board — Electricity Rates
- Ontario Energy Board — Historical Electricity Rates
- Government of Ontario — O. Reg. 328/26, Ontario Electricity Rebate Amendment
- Ontario Energy Board — Understanding Your Electricity Bill
- Ontario Energy Board — Choosing Your Electricity Price Plan
- Ontario Energy Board — Electricity Bill Calculator
- Government of Ontario — Manage Home Energy Costs
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