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

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.

Under the Fair Hydro Act, 2017, if you are eligible for the 8% Provincial Rebate, you will share the benefit of reduced electricity bill as those customers under the Regulated Price Plan (RPP). Effective May 1, 2019, the Ontario Energy Board has set a credit of $41.49 per MWh, which will be incorporated into the Global Adjustment (GA) charge to reduce the amount of GA you would otherwise have paid. Toronto Hydro will apply this credit to your consumption on or after May 1, 2019 through to October 31, 2019.

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
Rate Rider for Recovery of Stranded Meter Assets

This charge recovers stranded costs associated with the removal of conventional meters and is collected from General Service < 50 kW and General Service 50-999 kW customers.

Charge: $1.55 per 30 days
Rate Rider for Disposition of Lost Revenue Adjustment Mechanism Variance Account (LRAMVA)
This charge reflects variances between OEB-approved and actual conservation program results.
Charge: $(0.00020) per kWh
Rate Rider for Recovery of the Gain on the Sale of Named Properties
The charge recovers the difference between the estimated gains reflected in past rates and the actual gains achieved from the sale of properties.
Charge: $0.00013 per kWh
Rate Rider for Recovery of Hydro One Capital Contributions Variance
The recovery reflects the difference between amounts included in past rates for Hydro One capital payments and actual payments.
Charge: $0.00003 per kWh
Rate Rider for Application of IFRS – 2014 Derecognition
This charge reflects required changes in accounting rules affecting distribution rates.
Charge: $0.00049 per kWh
Rate Rider for Recovery of 2015 Foregone Revenue
The charge reflects the OEB approved costs to operate Toronto Hydro’s distribution system during 2015 that were not previously collected.
Charge: $0.79 per 30 days
Charge: $0.00076 per kWh
Rate Rider for Recovery of 2016 Foregone Revenue
This charge reflects the OEB approved costs to operate Toronto Hydro’s distribution system during the first two months of 2016 that were not previously collected.
Charge: $0.25 per 30 days
Charge: $0.00024 per kWh
Rate Rider for Disposition of Deferral/Variance Account
This charge or credit reflects the clearance of residual balances for accounts relating to variances for a number of energy related pass through costs.
Charge: $(0.00050) per kWh
Rate Rider for Disposition of Capacity Based Recovery (CBR) Variance Sub-Account
This charge recovers the difference between the cost of the CBR program in the wholesale energy market and CBR amounts billed to Class B customers.
Charge: $0.00003 per kWh
Rate Rider for Disposition of Global Adjustment Variance Account (Non-RPP Customers)
This credit reflects the variance between Global Adjustment paid to the IESO and collected from customers. This Rate Rider only applies to customers who are not on the Regulated Price Plan (Non-RPP) and were Class B customers within the 2016 period.
Charge: $0.00068 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: $2.6576 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
Rate Rider for Recovery of Stranded Meter Assets
This charge recovers stranded costs associated with the removal of conventional meters and is collected from General Service < 50 kW and General Service 50-999 kW customers.
Charge: $4.64 per 30 days
Rate Rider for Recovery of 2015 Foregone Revenue
The charge reflects the OEB approved costs to operate Toronto Hydro’s distribution system during 2015 that were not previously collected.
Charge: $1.01 per 30 days
Rate Rider for Recovery of 2016 Foregone Revenue
This charge reflects the OEB approved costs to operate Toronto Hydro’s distribution system during the first two months of 2016 that were not previously collected.
Charge: $0.30 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
Rate Rider for Disposition of LRAM Variance Account
This charge reflects variances between OEB-approved and actual conservation program results.
Charge: $0.1948 per kVA per 30 days
Rate Rider for Recovery of the Gain on the Sale of Named Properties
The charge recovers the difference between the estimated gains reflected in past rates and the actual gains achieved from the sale of properties.
Charge: $0.0114 per kVA per 30 days
Rate Rider for Recovery of Hydro One Capital Contributions Variance
The recovery reflects the difference between amounts included in past rates for Hydro One capital payments and actual payments.
Charge: $0.0047 per kVA per 30 days
Rate Rider for Application of IFRS – 2014 Derecognition
This charge reflects required changes in accounting rules affecting distribution rates.
Charge: $0.0781 per kVA per 30 days
Rate Rider for Recovery of 2015 Foregone Revenue
The charge reflects the OEB approved costs to operate Toronto Hydro’s distribution system during 2015 that were not previously collected.
Charge: $0.1659 per kVA per 30 days
Rate Rider for Recovery of 2016 Foregone Revenue
This charge reflects the OEB approved costs to operate Toronto Hydro’s distribution system during the first two months of 2016 that were not previously collected.
Charge: $0.0498 per kVA per 30 days
Rate Rider for Disposition of Deferral/Variance Account
Charge: $0.2813 per kVA per 30 days
Rate Rider for Disposition of Deferral/Variance Account for Non-Wholesale Market Participant Customers
This charge or credit reflects the clearance of residual balances for accounts relating to variance for a number of energy related pass through costs for customers who are not wholesale market participants.
Charge: $(0.4734) per kVA per 30 days
Rate Rider for Disposition of Capacity Based Recovery Variance Sub-Account
This charge recovers the difference between the cost of the CBR program in the wholesale energy market and CBR amounts billed to Class B customers.
Charge: $0.0105 per kVA per 30 days
Rate Rider for Disposition of Global Adjustment Variance Account (Applicable only for Non-RPP Customers)
This credit reflects the variance between Global Adjustment paid to the IESO and collected from customers. This Rate Rider only applies to customers who are not on the Regulated Price Plan (Non-RPP) and were Class B customers within 2016 period.
Charge: $0.00068 per kWh
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
Rate Rider for Recovery of 2015 Foregone Revenue
The charge reflects the OEB approved costs to operate Toronto Hydro’s distribution system during 2015 that were not previously collected.
Charge: $18.89 per 30 days
Rate Rider for Recovery of 2016 Foregone Revenue
This charge reflects the OEB approved costs to operate Toronto Hydro’s distribution system during the first two months of 2016 that were not previously collected.
Charge: $5.48 per 30 days

Distribution Charges

Distribution Volumetric Rate
Distribution Charges
Charge: $6.3766 per kVA per 30 days
Rate Rider for Disposition of Lost Revenue Adjustment Mechanism Variance Account (LRAMVA)
This charge reflects variances between OEB-approved and actual conservation program results.
Charge: $0.1251 per kVA per 30 days
Rate Rider for Recovery of the Gain on the Sale of Named Properties
The charge recovers the difference between the estimated gains reflected in past rates and the actual gains achieved from the sale of properties.
Charge: $0.0056 per kVA per 30 days
Rate Rider for Recovery of Hydro One Capital Contributions Variance
The recovery reflects the difference between amounts included in past rates for Hydro One capital payments and actual payments.
Charge: $0.0038 per kVA per 30 days
Rate Rider for Application of IFRS – 2014 Derecognition
This charge reflects required changes in accounting rules affecting distribution rates.
Charge: $0.0627 per kVA per 30 days
Rate Rider for Recovery of 2015 Foregone Revenue
The charge reflects the OEB approved costs to operate Toronto Hydro’s distribution system during 2015 that were not previously collected.
Charge: $0.1226 per kVA per 30 days
Rate Rider for Recovery of 2016 Foregone Revenue
This charge reflects the OEB approved costs to operate Toronto Hydro’s distribution system during the first two months of 2016 that were not previously collected.
Charge: $0.0356 per kVA per 30 days
Rate Rider for Disposition of Deferral/Variance Account
This charge or credit reflects the clearance of residual balances for accounts relating to variances for a number of energy related pass through costs.
Charge: $(0.2186) per kVA per 30 days
Rate Rider for Disposition of Capacity Based Recovery (CBR) Variance Sub-Account
This charge recovers the difference between the cost of the CBR program in the wholesale energy market and CBR amounts billed to Class B customers.
Charge: $0.0114 per kVA per 30 days
Rate Rider for Disposition of Global Adjustment Variance Account
This credit reflects the variance between Global Adjustment paid to the IESO and collected from customers. This Rate Rider only applies to customers who are not on the Regulated Price Plan (Non-RPP) and were Class B customers within 2016 period.
Charge: $0.00068 per kWh
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
Rate Rider for Recovery of 2015 Foregone Revenue
The charge reflects the OEB approved costs to operate Toronto Hydro’s distribution system during 2015 that were not previously collected.
Charge: $85.84 per 30 days
Rate Rider for Recovery of 2016 Foregone Revenue
This charge reflects the OEB approved costs to operate Toronto Hydro’s distribution system during the first two months of 2016 that were not previously collected.
Charge: $25.18 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
Rate Rider for Disposition of LRAM Variance Account
This charge reflects variances between OEB-approved and actual conservation program results.
Charge: $0.2282 per kVA per 30 days
Rate Rider for Recovery of the Gain on the Sale of Named Properties
The charge recovers the difference between the estimated gains reflected in past rates and the actual gains achieved from the sale of properties.
Charge: $0.0044 per kVA per 30 days
Rate Rider for Recovery of Hydro One Capital Contributions Variance
The recovery reflects the difference between amounts included in past rates for Hydro One capital payments and actual payments.
Charge: $0.0039 per kVA per 30 days
Rate Rider for Application of IFRS – 2014 Derecognition
This charge reflects required changes in accounting rules affecting distribution rates.
Charge: $0.0648 per kVA per 30 days
Rate Rider for Recovery of 2015 Foregone Revenue
The charge reflects the OEB approved costs to operate Toronto Hydro’s distribution system during 2015 that were not previously collected.
Charge: $0.1382 per kVA per 30 days
Rate Rider for Recovery of 2016 Foregone Revenue
This charge reflects the OEB approved costs to operate Toronto Hydro’s distribution system during the first two months of 2016 that were not previously collected.
Charge: $0.0406 per kVA per 30 days
Rate Rider for Disposition of Deferral/Variance Account
Charge: $0.3397 per kVA per 30 days
Rate Rider for Disposition of Deferral/Variance Account for Non-Wholesale Market Participant Customers
This charge or credit reflects the clearance of residual balances for accounts relating to variances for a number of energy related pass through costs.
Charge: $(0.5628) per kVA per 30 days
Rate Rider for Disposition of Capacity Based Recovery (CBR) Variance Sub-Account
This charge recovers the difference between the cost of the CBR program in the wholesale energy market and CBR amounts billed to Class B customers.
Charge: $0.0095 per kVA per 30 days
Rate Rider for Disposition of Global Adjustment Variance Account (Applicable only for Non-RPP Customers)
This credit reflects the variance between Global Adjustment paid to the IESO and collected from customers. This Rate Rider only applies to customers who are not on the Regulated Price Plan (Non-RPP) and were Class B customers within 2016 period.
Charge: $0.00068 per kWh
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
Rate Rider for Recovery of the Gain on the Sale of Named Properties
The charge recovers the difference between the estimated gains reflected in past rates and the actual gains achieved from the sale of properties.
Charge: $0.00029 per kWh
Rate Rider for Recovery of Hydro One Capital Contributions Variance
The recovery reflects the difference between amounts included in past rates for Hydro One capital payments and actual payments.
Charge: $0.00006 per kWh
Rate Rider for Application of IFRS – 2014 Derecognition
This charge reflects required changes in accounting rules affecting distribution rates.
Charge: $0.00092 per kWh
Rate Rider for Recovery of 2015 Foregone Revenue
The charge reflects the OEB approved costs to operate Toronto Hydro’s distribution system during 2015 that were not previously collected.
Charge: $0.16 per customer 30 days
Charge: $0.02 per connection per 30 days
Charge: $0.00203 per kWh
Rate Rider for Recovery of 2016 Foregone Revenue
This charge reflects the OEB approved costs to operate Toronto Hydro’s distribution system during the first two months of 2016 that were not previously collected.
Charge: $0.05 per customer 30 days
Charge: $0.01 per connection per 30 days
Charge: $0.00062 per kWh
Rate Rider for Disposition of Deferral/Variance Account
This charge or credit reflects the clearance of residual balances for accounts relating to variances for a number of energy related pass through costs.
Charge: $(0.00049) per kWh
Rate Rider for Disposition of Capacity Based Recovery Variance (CBR) Sub-Account
This charge recovers the difference between the cost of the CBR program in the wholesale energy market and CBR amounts billed to Class B customers.
Charge: $(0.00003) per kWh
Rate Rider for Disposition of Global Adjustment Variance Account
This credit reflects the variance between Global Adjustment paid to the IESO and collected from customers. This Rate Rider only applies to customers who are not on the Regulated Price Plan (Non-RPP) and were Class B customers within 2016 period.
Charge: $0.00068 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
Rate Rider for Recovery of the Gain on the Sale of Named Properties
The charge recovers the difference between the estimated gains reflected in past rates and the actual gains achieved from the sale of properties.
Charge: $0.0741 per kVA per 30 days
Rate Rider for Recovery of Hydro One Capital Contributions Variance
The recovery reflects the difference between amounts included in past rates for Hydro One capital payments and actual payments.
Charge: $0.0312 per kVA per 30 days
Rate Rider for Application of IFRS – 2014 Derecognition
This charge reflects required changes in accounting rules affecting distribution rates.
Charge: $0.5133 per kVA per 30 days
Rate Rider for Recovery of 2016 Foregone Revenue
This charge reflects the OEB approved costs to operate Toronto Hydro’s distribution system during the first two months of 2016 that were not previously collected.
Charge: $0.0478 per kVA per 30 days
Rate Rider for Disposition of Deferral/Variance Account
This charge or credit reflects the clearance of residual balances for accounts relating to variances for a number of energy related pass through costs.
Charge: $(0.1687) per kVA per 30 days
Rate Rider for Disposition of Capacity Based Recovery Variance Sub-Account
This charge recovers the difference between the cost of the CBR program in the wholesale energy market and CBR amounts billed to Class B customers.
Charge: $0.0092 per kVA per 30 days
Rate Rider for Disposition of Global Adjustment Variance Account
This credit reflects the variance between Global Adjustment paid to the IESO and collected from customers. This Rate Rider only applies to customers who are not on the Regulated Price Plan (Non-RPP) and were Class B customers within 2016 period.
Charge: $0.00068 per kWh

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.