Regulated Price Plan Q&A

What are the Time-of-Use (TOU), Ultra-Low Overnight (ULO), or Tiered Price Customer Choices?

If you’re a residential or small business customer that pays Time of Use (TOU) or Tiered electricity prices, you can choose to switch to Ultra-Low Overnight (ULO) prices starting Wednesday, November 1, 2023.

 

If I elect to switch pricing options, when will my change take effect?

In accordance with the Ontario Energy Board’s Standard Supply Service Code no rate change will be applied to a billing period that begins before November 1, 2023.

Milton Hydro will implement your request to be effective with the first full meter reading period after processing the current bill. You will find your meter reading dates at the bottom of your bill under Service Period. Once the date under the heading Present is a November date then your elected RPP electricity rates will become effective.

You may receive up to two more bills at the current RPP electricity rates before your new RPP electricity rates are implemented for November 2023.
 

If you want to continue paying your current TOU or Tiered prices, no action is required. 

To switch from TOU or Tiered prices to ULO, you must notify Milton Hydro by switching your rate in your MyAccount or calling Customer Service at (905) 876-4611.

There is no deadline. You can ask to switch at any time. 
 
 

What are TOU prices?

With TOU prices, the price depends on when you use electricity. There are three TOU price periods:

• Off-peak, when demand for electricity is lowest. This price applies in the evenings on weekdays and all day on weekends. Every household and small business is different, but on average, Ontario households use nearly two thirds of their electricity during off-peak hours.

• Mid-peak, when demand for electricity is moderate. These periods are during the daytime, but not the busiest times of day.
• On-peak, when demand for electricity is generally higher. These are the busier times of day – generally when people are cooking, starting up their computers and running heaters or air conditioners.

 
With TOU pricing, you can help manage your electricity costs by shifting your usage to lower price periods when possible.

People use electricity differently depending on the season, so the TOU price periods are different in the summer (May 1 to October 31) than they are in the winter (November 1 to April 30).
 
 

What are Tiered prices?

With Tiered prices, you can use a certain amount of electricity each month at a lower price. Once that limit (called a threshold) is exceeded, a higher price applies.

Although May to October 2020 has been an exception due to COVID-19, for residential customers, the threshold normally changes with the season to reflect changing usage patterns – for example, there are fewer hours of daylight in the winter and some customers use electric heating.

In the winter period (November 1 – April 30), the Tier threshold for residential customers is 1,000 kWh, so that households can use more power at the lower price.

In the summer period (May 1 – October 31), the Tier threshold for residential customers is 600 kWh. The Tier threshold for small business customers is 750 kWh all year round.

Tiered prices give you the flexibility to use electricity at any time of day at the same price, although that price will change if you exceed the threshold during the month.
 

What are Ultra-Low Overnight prices? 

ULO prices depend on when you use electricity. There are four ULO price periods: 

• Ultra-Low Overnight, when demand for electricity is lowest on average. 
• Weekend Off-Peak, when demand for electricity is generally lower. 
• Mid-Peak, when demand for electricity is moderate. 
• On-Peak, when demand for electricity is highest on average. 

The ULO price periods are the same in the summer as they are in the winter. On weekends and holidays the cheapest rates are in effect all day.  

Customers that use more electricity at night, including shift workers and those that electrically heat their home or charge their electric vehicle, could save on their bills by shifting demand to the ULO rate period when province-wide electricity demand is lower. 

 

What will you see on your bill if you are a Residential Class Customer choosing a different Electricity Rate?

If you have recently changed your electricity rate, your next invoice may appear different from how you were previously billed.  

• To see an example of how a Tiered Electricity bill will look, click here. 
• To see an example of how a Time-of-Use (TOU) Electricity bill will look, click here. 
• To see an example of how an Ultra-Low Overnight (ULO) Electricity bill will look, click here.

What are electricity losses?

When electricity is delivered over a power line, it is normal for a small amount of power to be consumed or lost as heat. Equipment, such as wires and transformers, consume power before it gets to your home or business.

The dollar amount of electricity that is lost through distributing electricity to your home or business, is billed to customers by Milton Hydro who in turn pays the full amount to its electricity suppliers.

 

Where do I find the electricity losses on my bill?

The delivery line on your bill incorporates the electricity losses you are charged. Electricity losses are calculated based on Milton Hydro’s loss factor of 3.85% multiplied by the Base electricity used.

 

Example - Can you provide a detailed example of how Tiered electricity prices are calculated and shown on a Residential Customer's bill?

 

Example - Can you provide a detailed example of how Tiered electricity prices are calculated and shown on a Small Business Customer's bill?

Example - Can you provide a detailed example of how TOU electricity prices are calculated and shown on a Residential Customer's bill?

Example - Can you provide a detailed example of how TOU electricity prices are calculated and shown on a Small Business Customer's bill?

Example - Can you provide a detailed example of how ULO electricity prices are calculated and shown on a Residential Customer's bill?

Example - Can you provide a detailed example of how ULO electricity prices are calculated and shown on a Small Business Customer's bill?

   

What do TOU, Tiered, and ULO prices pay for? 

The OEB sets TOU, Tiered, and ULO prices based on a forecast of how much it will cost to supply TOU, Tiered, and ULO customers with the electricity they are expected to use over the next 12 months. The OEB sets TOU, Tiered, and ULO prices to recover the same forecast average cost of supply. 

The OEB sets TOU, Tiered, and ULO prices under the Regulated Price Plan (RPP). The RPP is designed to provide stable pricing, encourage conservation and ensure that the price customers pay for electricity better reflects the price paid to generators that produce the electricity that customers use in their homes or small businesses. 

Electricity utilities are not allowed to make a profit from the sale of electricity.

 How often are TOU, Tiered, and ULO prices set?

The OEB sets new TOU, Tiered, and ULO prices annually, every November, based on an estimate of how much it will cost to supply residential and small business customers on the Regulated Price Plan with the electricity that they are expected to use.

Will I save money by switching to a different electricity rate? 

There is no guarantee you will save money if you switch from your current rate to one of the other (TOU, Tiered, ULO) electricity rates. The total bill impact of switching will vary depending on how much electricity you consume in a month and when it is consumed. 
 
Considering a switch to a different electricity rate? For more information, go to the Milton Hydro Customer Portal and select the Smart Meter section and select the $ Price Comparison button to compare the difference in electricity cost between the TOU, Tiered, and ULO pricing options. 

What do I need to do to switch to a different electricity rate?

If you’re satisfied with your current electricity rate (TOU, Tiered, or ULO) and don’t want to switch to a different one, you don’t need to do anything. You will stay on your current rate plan. 

If you do want to switch to a different rate plan, here are the rules that apply. These rules also apply if you later want to switch back or to a different rate plan. 

• Starting November 1, 2023, Milton Hydro is accepting electricity rate switches via customers’ MyAccount or through our Customer Service team at (905) 876-4611. If you are switching by calling into our Customer Service line, you will need to have a recent electricity bill on hand, as the information provided must match the information on your bill. Please note that only authorized customers can make changes to the account. 

• Within 10 business days of receiving your rate switch request through your MyAccount or by phone to our Customer Service team, Milton Hydro will tell you if your electricity rate switch can be processed and must explain why (for instance, if you’re not authorized to make changes to the account, or the account can’t be verified). 

• If there are no issues with your request to switch to a different electricity rate, Milton Hydro has the same 10 business days to let you know when you can expect to start being billed on the new rate prices. Milton Hydro will notify you of when your change will take effect, either by email or mail if we don’t have your email address. 

• A switch from your current electricity rate prices can only take effect at the start of a billing period. A billing period is generally about 30 days long, and the start and end dates are identified on your electricity bill. Many customers are not billed based on a calendar month, and the start of your billing period can be any given day of a month. 

• Milton Hydro will start charging you the new electricity prices as of your next billing period after you officially switch your account to the new electricity rate if Milton Hydro receives that information at least 10 business days before that billing period starts, and provided there are no issues with your account (see above). 

• If Milton Hydro receives your request less than 10 business days before the start of your next billing period, Milton Hydro will start charging you the new electricity prices at the start of the next billing period after that. 

• Because a switch in prices can only take effect at the beginning of a billing period, it will take some time between the day you authorize the change and the day you actually start getting charged the new electricity rate prices. 

 
 
If I have switched to ULO prices, can I switch back to TOU or Tiered prices?

Yes. And the rules that apply to switching to ULO prices also apply if you later want to switch back to TOU or Tiered prices. Please note that your effective billing at the new rate will occur on your next billing cycle. 

 
Can all customers switch out of TOU or Tiered prices?

Most customers on TOU or Tiered may switch and pay ULO prices instead. 

However, if you live in a condo or apartment that has its own individual meter and your bill comes from a company other than your electricity utility, you are a customer of a unit sub-meter provider (USMP).  

Customers of USMPs also can’t switch to a different electricity rate price. That decision can only be made for the building as a whole by the master consumer, who is the person that retained a USMP for the property. In most cases, the master consumer is the property manager, landlord, or condominium board. 

Can customers with energy retailers switch pricing plans?

No, customers that are buying their electricity from an energy retailer pay the electricity price set out in their contract. Once they have left their retail contract, they will have a choice between paying TOU, Tiered, or ULO prices. For details about your energy contract, contact your energy retailer.