Starting May 1, 2026, Ontario households are expected to see an increase in their electricity bills as the Ontario Energy Board (OEB) implements changes to its summer Regulated Price Plan structure. This update affects both residential and small business customers who are part of the Regulated Price Plan.
The adjustments include a shift in the on-peak hours to the middle of the day, coinciding with the highest demand for air conditioning, and a reduction in the tiered pricing threshold from 1,000 kilowatt hours (kWh) to 600 kWh per month. These changes will lead to higher costs for electricity consumed during peak daytime hours and will push households that exceed the new threshold into the more expensive Tier 2 rate sooner.
These modifications come in the wake of significant electricity rate increases in November 2025, which saw a rise of approximately 29 to 30 percent across all Regulated Price Plan options. While the Ontario government increased the Ontario Electricity Rebate from 13.1 percent to 23.5 percent to alleviate some of the financial burden, many households will still experience increased monthly costs.
What Is Changing on May 1, 2026
Three key changes will take effect on May 1, 2026:
Summer Time of Use periods begin
The peak hours for electricity will shift to weekdays between 11 AM and 5 PM. Mid-peak hours will now be from 7 AM to 11 AM and 5 PM to 7 PM, while off-peak hours will apply from 7 PM to 7 AM on weekdays and include all hours on weekends and statutory holidays.
Tiered threshold drops by 40 percent
For residential customers under the Tiered plan, the threshold for moving from the lower Tier 1 rate to the higher Tier 2 rate will decrease from 1,000 kWh to 600 kWh per month. Small business customers will see a similar reduction from 750 kWh to 600 kWh.
Ultra Low Overnight rates and periods remain unchanged
The Ultra Low Overnight (ULO) plan, which was introduced in May 2023, will continue to offer its competitive overnight rate of 3.9 cents per kWh between 11 PM and 7 AM, unaffected by the summer pricing changes.
Ontario Summer Time of Use Rates and Hours for 2026
The rates for Time of Use pricing, which is the default for most residential customers, were established on November 1, 2025, and will remain in effect until October 31, 2026. The rates are as follows:
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- Off-peak: 9.8 cents per kWh (7 PM to 7 AM on weekdays, plus all weekends and holidays)
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- Mid-peak: 15.7 cents per kWh (7 AM to 11 AM and 5 PM to 7 PM on weekdays)
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- On-peak: 20.3 cents per kWh (11 AM to 5 PM on weekdays)
How the May 1 Change Will Hit Your Bill
The combined impact of the new Time of Use periods and the lowered tiered threshold will vary based on individual consumption patterns. Below are estimated impacts for different monthly usage scenarios:
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- 500 kWh: Slightly higher due to increased midday air conditioning usage.
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- 700 kWh: Estimated increase of $3 to $6.
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- 1,000 kWh: Estimated increase of $6 to $10.
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- 1,400 kWh: Estimated increase of $10 to $18.
These estimates reflect the electricity line of your bill before the Ontario Electricity Rebate is applied. After this rebate, typical summer bills for homes using 700 kWh will range from $130 to $160.
Ontario Electricity Rebate Continues at 23.5 Percent
The Ontario Electricity Rebate, which was increased to 23.5 percent in November 2025 to mitigate the impact of rising rates, will continue to be applied automatically to eligible residential and small business bills. This rebate can result in annual savings of between $320 and $480 for the average household, depending on consumption patterns.
How to Switch Your Pricing Plan
Eligible customers can choose between Time of Use, Tiered, and Ultra Low Overnight pricing plans at any time without penalties. To switch plans, customers should:
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- Contact their local electricity distributor.
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- Submit the Customer Choice Request Form online, by mail, or in person.
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- Wait up to ten business days for the change to be processed.
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- Note that the new plan will take effect at the start of the next billing period after confirmation.
Frequently Asked Questions
Do businesses pay the same time of use rates as residential customers?
Yes, small business customers with a peak demand under 50 kilowatts qualify for the same Regulated Price Plan rates as residential customers. However, the Tiered threshold for small businesses is 600 kWh in summer, unlike the 1,000 kWh threshold for residential customers in winter.
If I signed a contract with an energy retailer, do the May 1 changes still apply to me?
No. Customers who have a fixed-rate contract with a licensed electricity retailer will continue to pay the contract rate, which is unaffected by the OEB’s Regulated Price Plan changes.
Are there assistance programs for low-income Ontario households struggling with hydro bills?
Yes, the Ontario Electricity Support Program provides monthly credits to qualifying low-income households, while the Low Income Energy Assistance Program offers one-time emergency grants for households at risk of disconnection.
Reality Check
As electricity rates continue to rise, it’s essential for consumers to understand how these changes may impact their finances. Households that exceed the new thresholds for Tiered pricing or consume more electricity during peak hours should remain vigilant and consider adjusting their usage habits. Additionally, those considering switching pricing plans should review their consumption patterns to select the most cost-effective option.
For the most accurate and updated information, always refer to the Ontario Energy Board’s official website.
