Residential electricity rates

Understanding current rates and how they're set.

Residential rate change

As of January 1, 2019, the Delivery Charge on your bill increased. The rates reflect changes in distribution rates as approved by the Ontario Energy Board (OEB) as part of Toronto Hydro’s 2015-2019 rates application, as well as changes in transmission, generation and other commodity costs.

View more information about the rate change

Types of electricity rates

Time-of-Use (TOU) rates

The Ontario Energy Board (OEB) has announced new electricity prices in effect for your consumption between May 1, 2018 and April 30, 2019.

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.

Winter pricing period, effective November 1, 2018 to April 30, 2019

TOU period Hours Price
On-Peak Weekdays from 7 a.m. to 11 a.m. and 5 p.m. to 7 p.m. 13.2¢ per kWh
Mid-Peak Weekdays from 11 a.m. to 5 p.m. 9.4¢ per kWh
Off-Peak Weekdays from 7 p.m. to 7 a.m. and all day weekends and holidays 6.5¢ 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.

If you’re on Regulated Price Plan Tiered Pricing, your consumption in kWhs is separated into two price tiers under the government’s Regulated Price Plan (RPP). Customers will be charged one rate for the first 1000 kWhs of use per 30 days, while electricity consumed in excess of this threshold will be priced at a different rate.

The price threshold (the amount of electricity consumption that is charged at the lower price) will change twice a year for residential consumers. The price threshold will be 1,000 kWhs per 30 days during the winter season (November 1 to April 30) and 600 kWhs during the summer season (May 1 to October 31). This allows you to use more electricity at a lower price in the winter. For additional information, visit the Ontario Energy Board (OEB).

Tiered rates pricing - per 30 days

Price tier Description Price
Tier 1 Up to 1,000 kWh/month 7.7¢ per kWh
Tier 2 More than 1,000 kWh/month 8.9¢ 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.

You may choose to purchase your electricity by entering a contract with a licensed electricity retailer. Your contract specifies a fixed electricity price for a set number of years. Please note that the fixed price is not regulated by the Ontario Energy Board. Read more information on electricity retailers.

Under the Fair Hydro Act, 2017, customers like you who have signed a contract with an energy retailer will share the benefit of reduced electricity bill as those customers under the Regulated Price Plan. Effective May 1, 2018, the Ontario Energy Board has set a credit of 4.4¢/kWh 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, 2018 through to April 30, 2019.

Delivery charges

The Delivery Charge covers the cost of delivering electricity from the generator to Toronto Hydro, and then to your home or business. This includes the costs to build and maintain the transmission and distribution lines, towers and poles and to operate provincial and local electricity systems.

Toronto Hydro received approval from the Ontario Energy Board (OEB) to change its Delivery Charge, effective January 1, 2019.

The Delivery Charge covers the cost of delivering electricity from the generator to Toronto Hydro, and then to your home or business. This includes the costs to build and maintain the transmission and distribution lines, towers and poles and to operate provincial and local electricity systems. Some of these charges are fixed and do not change from month-to-month. Others are variable and increase or decrease depending on the amount of electricity that you use.

The Delivery Charge also includes the cost of electricity lost or consumed as heat through distributing electricity from equipment such as wires and transformers, before it gets to your home. Toronto Hydro collects and pays this money to its suppliers. Costs collected for transmission and operating the provincial grid are passed on, without mark-up, to Hydro One.

Transmission charge

This charge covers the costs involved to transmit electricity from generators to the city. Toronto Hydro passes this cost through to you, without mark-up. The increase in the Transmission Charge, by 0.123¢ per kWh, reflects the cost of transmission services provided by Hydro One to Toronto Hydro.

Charge: 1.499¢/kWh

Customer charges

Customer charges total $40.07 per 30 days and include the Customer Charge and fixed Rate Riders outlined below.
Customer Charge
The Customer Charge, together with the Distribution Charge, covers the costs Toronto Hydro incurs to deliver electricity to your home, building and maintaining the distribution system, administration, and billing. The increase of $4.85, approved by the OEB, reflects an increase in Toronto Hydro’s costs to provide distribution services. As mandated by the OEB, the distribution charge is gradually moving to a fully fixed monthly customer charge. During the transition period, the fixed customer charge will be progressively increased and the consumption-based distribution charge will be reduced.
Charge: $37.48 per 30 days
Rate Rider for Smart Metering Entity Charge
On March 1, 2018, the OEB approved a decrease of Smart Metering Entity Charge to be collected from customers effective April 1, 2018, on behalf of the Smart Meter Entity (SME). This charge recovers costs incurred by the SME to collect, manage, store and retrieve information related to the metering of these 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 removal of conventional meters.
Charge: $0.28 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: $0.10 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: $0.03 per 30 days
Rate Rider for Application of IFRS – 2014 Derecognition
This charge reflects required changes in accounting rules affecting distribution rates.
Charge: $0.46 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: $0.88 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: $0.28 per 30 days

Distribution charges

Distribution charges total 0.599¢/kWh and include the Distribution Charge and most variable Rate Riders outlined below.

Distribution Charge
The Distribution Charge, together with the Customer Charge, covers the costs Toronto Hydro incurs to deliver electricity to your home, build and maintain the distribution system, administration and billing. The OEB approved a decrease of distribution charge by -0.510¢/kWh. As mandated by the OEB, the distribution charge is gradually moving to a fully fixed monthly customer charge. During the transition period, the fixed customer charge will be progressively increased and the consumption-based distribution charge will be reduced.
Charge: 0.553¢/kWh
Rate Rider for Disposition of Deferral/Variance Account
The credit reflects the clearance of residual balances for accounts relating to variances for a number of energy related pass through costs.
Credit: (0.052¢)/kWh
Rate Rider for Disposition of LRAM Variance Account
This charge reflects variances between OEB-approved and actual conservation program results.
Charge: 0.095¢/kWh
Rate Rider for Disposition of Capacity Based Recovery Variance Sub-Account
The charge recovers the difference between the cost of CBR program in the wholesale energy market and CBR amounts billed to Class B customers.
Charge: 0.003¢/kWh
Rate Rider for Disposition of Global Adjustment Variance Account
This charge 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).
Charge: 0.068¢/kWh

Toronto Hydro received approval from the Energy Board (OEB) to change its Delivery rates effective January 1, 2019.

The Delivery Charge covers the cost of delivering electricity from the generator to Toronto Hydro, and then to your home or business. This includes the costs to build and maintain the transmission and distribution lines, towers and poles and to operate provincial and local electricity systems. Some of these charges are fixed and do not change from month-to-month. Others are variable and increase or decrease depending on the amount of electricity that you use.

The Delivery Charge also includes the cost of electricity lost or consumed as heat through distributing electricity from equipment such as wires and transformers, before it gets to your home. Toronto Hydro collects and pays this money to its suppliers. Costs collected for transmission and operating the provincial grid are passed on, without mark-up, to Hydro One.

Transmission charge

This charge covers the costs involved to transmit electricity from generators to the city. Toronto Hydro passes this cost through to you, without mark-up. The increase in the Transmission Charge by 0.123¢ per kWh reflects the cost of transmission services provided by Hydro One to Toronto Hydro.

Charge: 1.499¢/kWh

Customer charges

Customer charges amount to $31.65 per 30 days and include the Customer Charge and fixed Rate Riders outlined below.

Customer Charge
The Customer Charge, together with the Distribution Charge, covers the costs Toronto Hydro incurs to deliver electricity to your home, building and maintaining the distribution system, administration, and billing. The increase of $3.78, approved by the OEB, reflects an increase in Toronto Hydro’s costs to provide distribution services. As mandated by the OEB, the distribution charge is gradually moving to a fully fixed monthly customer charge. During the transition period, the fixed customer charge will be progressively increased and the consumption-based distribution charge will be reduced.
Charge: $30.58 per 30 days
Rate Rider for Smart Metering Entity Charge Rate Rider
On March 1, 2018 the OEB approved a decrease of Smart Metering Entity Charge to be collected from Residential and General Service < 50 kW customers effective April 1, 2018, on behalf of the Smart Meter Entity (SME). This charge recovers costs incurred by the SME to collect, manage, store and retrieve information related to the metering of these customers’ electricity usage in Ontario.
Charge: $0.56 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: $0.04 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: $0.01 per 30 days
Rate Rider for Application of IFRS – 2014 Derecognition
This charge reflects required changes in accounting rules affecting distribution rates.
Charge: $0.18 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: $0.19 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: $0.09 per 30 days

Distribution charges

Distribution charges amount to 0.921¢/kWh and include Distribution Charge and most variable Rate Riders outlined below.

Distribution Charge
The Distribution Charge, together with the Customer Charge, covers the costs Toronto Hydro incurs to deliver electricity to your home, build and maintain the distribution system, administration and billing. The OEB approved a decrease of distribution charge by -0.781¢/kWh. As mandated by the OEB, the distribution charge is gradually moving to a fully fixed monthly customer charge. During the transition period, the fixed customer charge will be progressively increased and the consumption-based distribution charge will be reduced.
Charge: 0.846¢/kWh
Rate Rider for Disposition of Deferral/Variance Account
The credit reflects the clearance of residual balances for accounts relating to variances for a number of energy related pass through costs.
Charge: (0.054¢)/kWh
Rate Rider for Disposition of LRAM Variance Account
This charge reflects variances between OEB-approved and actual conservation program results.
Charge: 0.126¢/kWh
Rate Rider for Disposition of Capacity Based Recovery Variance Sub-Account
The charge recovers the difference between the cost of CBR program in the wholesale energy market and CBR amounts billed to Class B customers.
Charge: 0.003¢/kWh
Rate Rider for Disposition of Global Adjustment Variance Account
This charge 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), enrolled with a retailer contract.
Charge: 0.068¢/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: 0.39 ¢/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

Other charges/credits may include miscellaneous adjustments to prior billed electricity amounts, or charges for other specific services. View a list of specific service charges that may be applied to your bill statement.

As of January 1, 2016, the Debt Retirement Charge (DRC) is no longer applied to residential and qualifying bulk metered multi-unit residential customers. For more information, visit the Ministry of Finance.

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.

On January 1, 2017, your electricity costs went down 8%. Ontario’s government is reducing electricity costs by rebating an amount equal to the provincial portion of the HST on your monthly hydro bill. That’s an 8% rebate for Ontario families, and on average will mean $130 more in your pocket each year. This is part of Ontario’s plan to help people with the costs of everyday living by reducing electricity costs.

Across Ontario, about five million residential consumers, farms and small businesses will benefit from this rebate. Toronto Hydro has implemented these savings onto your bill on January 1, 2017. For information on 8% Provincial Rebate, please visit the Ministry of Energy, Northern Development and Mines.

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 are being billed the higher tiered rate of the Regulated Price Plan.

If you have any questions, please contact us through our online form or speak with one of our Customer Care representatives at 416‑542‑8000.