Your electricity bill is about to get more expensive. Starting May 1, 2026, Ontario households will face significant structural changes to how they’re charged for power—and most people will pay more. Here’s what’s happening and how to fight back.
On May 1, the Ontario Energy Board is making two simultaneous changes that will compound into noticeably higher summer electricity bills:
First: Peak pricing hours are shifting from early morning and evening to smack in the middle of the day—right when air conditioning kicks into overdrive.
Second: The threshold for entering the higher “Tier 2” pricing drops by 40%, meaning you’ll hit expensive rates much faster than before.
Together, these changes come just six months after Ontario approved its steepest residential rate increase since 2019—a roughly 30% jump across all pricing plans.
Let’s say your household typically uses 700 kilowatt hours per month during summer. You’re looking at an additional $3 to $6 per month just from the time-of-use shift. If you’re a heavy user consuming 1,000 kWh monthly, expect $6 to $10 extra.
But here’s the kicker: A household consuming 1,000 kilowatt hours in a summer month will pay Tier 1 rates on the first 600 and Tier 2 on the remaining 400—a difference of 2.2 cents per kilowatt hour across those 400 hours works out to $8.80 in additional charges per month.
For higher-consumption homes, the pain is real. A 1,400 kilowatt-hour household pays Tier 2 rates on the final 800 kilowatt-hours in summer versus only 400 in winter.
When you add the earlier November 2025 rate increase, 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 Ontario government isn’t sitting idle. The Ontario Electricity Rebate was expanded from 13.1 percent to 23.5 percent effective November 1, 2025, softening the blow for most households.
This rebate is applied automatically to every residential bill—no application needed. Over a full year, this rebate is estimated to save the average Ontario household between 320 and 480 dollars, depending on consumption patterns.
Still, the math is harsh: rising rates outpace the rebate for many families, especially those running air conditioners heavily during the new peak hours.
Starting May 1, here’s exactly what you’ll pay depending on when you use electricity:
Peak Hours (Most Expensive): 11 AM to 5 PM on weekdays = 20.3 cents per kilowatt-hour
Mid-Peak: 7 AM to 11 AM and 5 PM to 7 PM on weekdays = 15.7 cents per kilowatt-hour
Off-Peak (Cheapest): 7 PM to 7 AM weekdays, plus all day weekends and holidays = 9.8 cents per kilowatt-hour
The dramatic shift? In 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.
Summer electricity demand across Ontario peaks mid-day because of air conditioning. Peak summer demand often exceeds 22,000 megawatts, compared to winter peaks closer to 20,000 megawatts.
The problem: Ontario’s system operator relies on natural gas generation during peak hours, which is more expensive and emits more carbon than baseload supply.
By pricing electricity higher during midday, the OEB is trying to nudge people to reduce cooling during peak hours, flattening demand and avoiding the need for expensive natural gas plants.
You can offset some of these increases with strategic behavior changes:
Cool Before Peak Arrives 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.
Shift Appliances to Off-Peak Hours Run dishwashers, washing machines, and clothes dryers after 7 PM on weekdays or during weekends when off-peak rates apply all day.
Charge Your EV at Night 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 Passive Cooling 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.
Not all plans hit all households equally. Time of Use is best suited for households that can shift usage away from midday and early evening. Tiered pricing is best for households with steady consumption below 600 kWh per month in summer. Ultra Low Overnight is ideal for EV owners, night-shift workers, or households with significant overnight usage.
The difference can be significant. Selecting the right pricing plan can change monthly bills by 15 to 25 percent for households with predictable consumption patterns.
You can switch plans at any time by contacting your local utility. The change takes effect on your next billing period if requested at least ten days in advance.
If you have an electric vehicle or do laundry at odd hours, the Ultra Low Overnight plan might pay for itself. The ULO plan offers 3.9 cents per kilowatt hour overnight between 11 PM and 7 AM daily. 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.
For solar-plus-battery homes, the opportunities are even better. 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.
If you’re thinking of moving west, know this: Ontario’s blended residential rate after the Ontario Electricity Rebate sits between 13 and 15 cents per kilowatt-hour for most households. 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 is in the middle of the pack—cheaper than Atlantic Canada but pricier than Quebec and the Prairies.
Mark your calendar: 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.
May 1 isn’t a catastrophe—but it’s real money out of your pocket. Between the earlier 30% rate increase and the structural changes coming this month, Ontario households are facing a meaningful hit to summer electricity costs.
The Ontario Electricity Rebate softens the blow, but it doesn’t eliminate it. Your best defense is strategic usage: precool before noon, run appliances at night, and consider switching to a plan that matches your consumption patterns.
For most households, small behavior changes can save $20 to $50 per month during summer. That’s $240 to $600 annually—money you can keep in your pocket instead of sending to your utility company.
While shifting your usage habits can save $20-$50 per month, the real solution is to stop relying on grid electricity altogether. Solify helps Ontario homeowners and businesses install solar panels, heat pumps, battery storage, and other energy-efficient upgrades that can reduce—or even eliminate—your monthly hydro bill. Better yet, you may qualify for thousands in government grants and rebates, including Canada Greener Homes Loan, Ontario’s Home Renovation Savings Program, and the Clean Tech ITC for commercial projects. Instead of paying $130-$230 per month in summer electricity bills, imagine a zero-energy home where solar panels generate the power you need and battery storage captures excess energy. Solify manages the entire process—from energy audits and installation to incentive applications—so you can maximize savings without navigating complex programs. If you’re tired of rising electricity costs eating into your budget, get a free energy assessment and check your eligibility for government incentives today. The next rate increase arrives November 1, 2026. Don’t wait—take control of your energy costs now.
