Understanding changes in your bill: Why your electricity costs may be higher than expected
Published: July 28, 2026
Summary
- If your Toronto Hydro bill seems higher than usual, several factors could be at play — including heating and cooling your home, household energy use, rate changes and more
- While some causes of bill increases may be outside your control, understanding the factors that influence your electricity costs can help you make informed decisions about managing your bill
If your Toronto Hydro bill seems higher than usual, there could be a variety of reasons why — from seasonal weather and household energy use to changes in electricity rates. Every household is different, and while some factors are unavoidable, others may offer opportunities to help manage your monthly costs.
Below are some of the most common causes of bill increases and how to manage them.
Seasonal
Heating and cooling are often the biggest contributors to a home's electricity use, accounting for more than 60% of your annual energy costs. During periods of extreme heat or cold, your cooling or heating system may need to work harder to keep your home comfortable, which can lead to higher electricity use.
Usage
Phantom power
Even when they're turned off, devices and appliances that are plugged in continue to use electricity. This “phantom power” can add up over time and accounts for as much as 10% of your electricity bill.
Additional appliances
Purchased a new fridge? Bought a bigger TV? Changes in your household's appliances and electronics can also affect how much electricity you use. Adding new devices, upgrading to larger appliances or spending more time using them may contribute to higher energy consumption.
Increased household size
Houseguests and spending more time at home means more cooking, laundry and use of home electronics. As households grow or living arrangements change, electricity use will naturally increase.
Rates
Rate changes
Even if your electricity use stays the same, changes to electricity rates can impact the amount you pay and may result in a higher bill. Rates-related updates generally occur each year on January 1, May 1 and November 1.
Fixed and variable charges
Your bill includes both fixed and usage-based charges. For example, Delivery Charges are fixed and still appear on your bill even if you don’t use any electricity at all that month. Regulatory Charges, on the other hand, are variable and increase or decrease depending on how much electricity you use.
To learn about current rates, as well as Delivery and Regulatory Charges, visit our Residential rates and charges web page.
Billing
Your electricity price plan
Did you know that your electricity usage habits may benefit from a different price plan than you’re currently on? Being billed on a price plan that may not suit your lifestyle can also be a driver of higher bills. Customer Choice is an Ontario Energy Board initiative that allows customers under the Regulated Price Plan to choose between three electricity price plans: Time-of-Use, Ultra-Low Overnight and Tiered.
To find the price plan that's best for you, visit our Customer Choice web page.
Variation in billing periods
Your billing period is typically between 27 and 33 days, so some bills may cover slightly more than a month's worth of electricity use. To see the length of your billing period, check the “Number of Days” column on your bill.
For online access to your bill, log in to our self-serve portal.
Equal Payment Plan (EPP) annual reconciliation
An Equal Payment Plan (EPP) can help make your monthly electricity costs more predictable by spreading them out evenly across the year. Once a year, we’ll compare your payments to your actual electricity use, and any difference will be reflected on your next bill — either as an amount owing or a credit.
Looking to better understand your bill? Visit our Bill breakdown web page for a detailed explanation of your monthly bill.