Business electricity rates

Understanding current rates and how they're set.

Business rates change

Effective November 1, 2019, the Ontario Energy Board (OEB) announced changes to electricity rates for customers paying under the Regulated Price Plan (RPP) for Time-of-Use (TOU) and Tiered rates.

View more information about the rates change

Rate application decision

On December 19, 2019, the Ontario Energy Board (OEB) released its decision (PDF, 1.8 MB) for our 2020-2024 electricity distribution rates application.

Learn about our 2020-2024 plan

Types of electricity rates

Time-of-Use (TOU)

TOU rates work together with your smart meter. With TOU rates, you pay according to the time of day you use electricity so it's important to manage how much electricity you use and when you use it.

The OEB announced new electricity prices in effect for your consumption between November 1, 2019 and April 30, 2020.

Winter pricing periods effective November 1

TOU period Hours Price
On-peak Weekdays from 7 a.m. to 11 a.m. and 5 p.m to 7 p.m. 20.8¢ per kWh
Mid-peak Weekdays from 11 a.m. to 5 p.m. 14.4¢ per kWh
Off-peak Weekdays from 7 p.m. to 7 a.m. and all day weekends and holidays 10.1¢ per kWh

The rates quoted above cover the cost of electricity purchased on your behalf. Toronto Hydro passes this cost through to you, without mark-up, and pays it directly to our suppliers.

View the TOU holiday schedule

If you're on the Regulated Price Plan Tiered Pricing, your consumption in kWhs is separated into two price tiers under the government's Regulated Price Plan. You'll be charged one rate for the first 750 kWhs of usage per 30 days. Any electricity that you consume over this 750 kWh threshold will be priced at a higher rate. For more information, please visit the Ontario Energy Board's website.

Tiered rates pricing - per 30 days

Price tier Description Price
Tier 1 Non-residential customers: for electricity used up to 750 kWh/month 11.9¢ per kWh
Tier 2 Non-residential customers: for electricity used above 750 kWh/month 13.9¢ per kWh

The rates quoted above cover the cost of electricity purchased on your behalf. Toronto Hydro passes this cost through to you, without mark-up, and pays it directly to our suppliers.

Most General Service customers with monthly demand greater than 50 kW, who do not have a contract with a retailer, pay the wholesale electricity price and Global Adjustment electricity charge. Toronto Hydro collects both charges, without mark-up, on behalf of the Independent Electricity System Operator (IESO).

Customers with interval meters are charged the Hourly Ontario Energy Price (HOEP), which is the hourly price that is charged to Toronto Hydro, for their electricity consumption. Customers without interval meters are charged a weighted average hourly price based on consumption patterns of similar consumers. Customers may also choose a contract offered by a licensed electricity retailer.

Global Adjustment

Global Adjustment accounts for the differences between the market price of electricity and the rates paid to regulated and contracted generators for the electricity they produce. It also reflects the costs of conservation and demand management programs by both the IESO and Toronto Hydro. As a result, its value may be negative, depending on the fluctuation of prices in the spot market.

For medium and large businesses the Global Adjustment appears as a separate line on your bill. Please visit the OEB or the IESO for more details.

You may choose to purchase your electricity by entering a contract with a licensed electricity retailer. The contract specifies a fixed electricity price for a set number of years. Unlike Toronto Hydro's rates, the fixed price is not regulated by the Ontario Energy Board (OEB). Please visit the OEB's Retail Energy Contracts website for more details.

Delivery charges

Customer Charge
The Customer Charge, together with the Distribution Charge, covers the costs Toronto Hydro incurs in delivering electricity to your business, building and maintaining the distribution system, administration, and billing.
Charge: $35.80 per 30 days
Distribution Volumetric Rate
The Distribution Charge, together with the Customer Charge, covers the costs Toronto Hydro incurs to deliver electricity to your business, build and maintain the distribution system, administration and billing.
Charge: $0.03312 per kWh
Transmission Charges
The Transmission Charges are variable charges based on a per kWh or kW basis, depending on the rate class. These charges cover the costs involved in transmitting electricity from generators to the city. Toronto Hydro passes this cost through to you, without mark-up.
Charge:$0.01404 per kWh
Rate Rider for Smart Metering Entity Charge
On March 1, 2018 the Ontario Energy Board approved a decrease in Smart Metering Entity (SME) Charge to be collected from General Service < 50 kW customers effective April 1, 2018, on behalf of the SME. This charge, which is applied on a per 30 day basis, recovers the costs incurred by the SME to collect, manage, store and retrieve information related to the metering of General Service < 50 kW customers’ electricity usage in Ontario.
Charge: $0.56 per 30 days

Transmission Charges

The Transmission Charges are variable charges based on a per kWh or kW basis, depending on the rate class. These charges include the Network and Connection charge and cover the costs involved in transmitting electricity from generators to the city. Toronto Hydro passes this cost through to you, without mark-up.

Network
Charge: $2.6576 per Peak kW per 30 days
Connection
Charge: $2.3054 per Max. kW per 30 days

Customer Charges

Customer Charge
The Customer Charge, together with the Distribution Charge, covers the costs Toronto Hydro incurs in delivering electricity to your business, building and maintaining the distribution system, administration, and billing.
Charge: $51.50 per 30 days

Distribution Charges

Distribution Volumetric Rate
The Distribution Charge, together with the Customer Charge, covers the costs Toronto Hydro incurs to deliver electricity to your business, build and maintain the distribution system, administration and billing.
Charge: $8.1052 per kVA per 30 days
Transformer Allowance for Ownership (if applicable)
Transformer Allowance to those customers that own their transformation facilities.
Charge: $(0.62) per kVA per 30 days

Transmission Charges

The Transmission Charges are variable charges based on a per kWh or kW basis, depending on the rate class. These charges include the Network and Connection charge and cover the costs involved in transmitting electricity from generators to the city. Toronto Hydro passes this cost through to you, without mark-up.

Network
Charge: $2.5677 per Peak kW per 30 days
Connection
Charge: $2.3030 per Max. kW per 30 days

Customer Charges

Customer Charge
The Customer Charge, together with the Distribution Charge, covers the costs Toronto Hydro incurs in delivering electricity to your business, building and maintaining the distribution system, administration, and billing.
Charge: $983.72 per 30 days

Distribution Charges

Distribution Volumetric Rate
Distribution Charges
Charge: $6.3766 per kVA per 30 days
Transformer Allowance for Ownership (if applicable)
Transformer Allowance to those customers that own their transformation facilities.
Charge: $(0.62) per kVA per 30 days

Transmission Charges

The Transmission Charges are variable charges based on a per kWh or kW basis, depending on the rate class. These charges include the Network and Connection charge and cover the costs involved in transmitting electricity from generators to the city. Toronto Hydro passes this cost through to you, without mark-up.

Network
Charge: $2.9271 per Peak kW per 30 days
Connection
Charge: $2.5587 per Max. kW per 30 days

Customer Charges

Customer Charge
The Customer Charge, together with the Distribution Charge, covers the costs Toronto Hydro incurs in delivering electricity to your business, building and maintaining the distribution system, administration, and billing.
Charge: $4,342.23 per 30 days

Distribution Charges

Distribution Volumetric Rate
The Distribution Charge, together with the Customer Charge, covers the costs Toronto Hydro incurs to deliver electricity to your business, build and maintain the distribution system, administration and billing.
Charge: $6.8407 per kVA per 30 days
Transformer Allowance for Ownership (if applicable)
Transformer Allowance to those customers that own their transformation facilities.
Charge: $(0.62) per kVA per 30 days

Customer Charge
The Customer Charge, together with the Distribution Charge, covers the costs Toronto Hydro incurs in delivering electricity to your business, building and maintaining the distribution system, administration, and billing.
Charge: $7.14 per customer 30 days
Connection Charge
Charge: $0.74 per connection per 30 days
Distribution Volumetric Rate
The Distribution Charge, together with the Customer Charge, covers the costs Toronto Hydro incurs to deliver electricity to your business, build and maintain the distribution system, administration and billing.
Charge: $0.08971 per kWh
Transmission Charges
The Transmission Charges are variable charges based on a per kWh or kW basis, depending on the rate class. These charges cover the costs involved in transmitting electricity from generators to the city. Toronto Hydro passes this cost through to you, without mark-up.
Charge: $0.00926 per kWh

Transmission Charges

The Transmission Charges are variable charges based on a per kWh or kW basis, depending on the rate class. These charges include the Network and Connection charge and cover the costs involved in transmitting electricity from generators to the city. Toronto Hydro passes this cost through to you, without mark-up.

Network
Charge: $2.3638 per Peak kW per 30 days
Connection
Charge: $2.7488 per Max. kW per 30 days

Customer Charges

The Customer Charge, together with the Distribution Charge, covers the costs Toronto Hydro incurs in delivering electricity to your business, building and maintaining the distribution system, administration, and billing.

Service charge (per device)
Charge: $1.61 per device 30 days

Distribution Charges

Distribution Volumetric Rate
The Distribution Charge, together with the Customer Charge, covers the costs Toronto Hydro incurs to deliver electricity to your business, build and maintain the distribution system, administration and billing.
Charge: $35.7759 per kVA per 30 days

Regulatory charges

Regulatory charges are the costs of administering the wholesale electricity system and maintaining the reliability of the provincial grid.

Wholesale Market Service Charge
This charge covers costs such as market regulation and the management of the system. Toronto Hydro collects this charge, without mark-up, on behalf of the Independent Electricity System Operator.
Charge: $0.0035 per kWh
Capacity Based Recovery (CBR) – Applicable for Class B Customers
Charge: $0.0004 per kWh
Standard Supply Service – Administration Charge (if applicable)
This is an administration charge of $0.25 stated on a 30-day basis. If your billing period is different than 30 days, the RPP administration charge will be prorated accordingly. This is a service charge for customers who have not contracted with an electricity retailer for their energy supply.
Charge: $0.25 per 30 days

Additional charges

As a customer, you may receive charges for other specific services. View a list of specific service charges that may be applied to your bill statement.

Starting November 1, 2019, the previous 8% rebate and other built-in reductions are being replaced with the Ontario Electricity Rebate (OER) of 31.8% . The change was introduced by the Ontario government as an expanded rebate providing bill relief that will be applied to customer bills, largely offsetting the price changes on the electricity line.

The rebate will be applied to bills for most residential consumers, farms and many small businesses. For additional information, please visit the Government of Ontario website.

Effective July 1, 2010, Harmonized Sales Tax (HST) of 13% is applied to electricity bills. The implementation of HST is mandated by the Province of Ontario. For information on HST, please visit the Ontario Ministry of Revenue or call the HST hotline at 1-800-337-7222.

These charges are applied to current customers who have an unmetered electric water heater billed by Toronto Hydro on a flat rate basis. Toronto Hydro no longer offers this flat rate billing option for new customers.

As of May 1, 2002, flat rate (unmetered) water heater energy usage is billed on an estimated average daily kWh basis. Your estimated usage is determined by the size of your water heater, the wattage of the water heater electric elements and on the number of days in the billing period. If you have an unmetered electric water heater, you’re being billed on the higher tiered rate of the Regulated Price Plan.

If you have any questions, please contact us by filling out our online form or speak with one of our Customer Care representatives at 416-542-8000, Monday to Friday from 8 a.m. to 8 p.m.