Time-of-Use vs Tiered Pricing

Time-of-use, tiered and ULO are billing choices for the same electricity service

Time-of-use vs tiered pricing is not a rebate in the usual sense. It is a rate-plan choice under Ontario’s Regulated Price Plan, administered through the Ontario Energy Board and your local electricity utility.

With time-of-use pricing, the electricity price changes by time block. Power used in peak periods costs more than power used overnight or on weekends. This can reward households that can move laundry, dishwashing, EV charging and other flexible loads away from weekday peaks.

With tiered pricing, the price is based on how much electricity you use in the billing period. The first block of use is billed at a lower rate, then usage above the threshold is billed at a higher rate. This can suit homes where electricity use is spread through the day and cannot easily be shifted.

Ultra-low overnight pricing, often called ULO, adds a very low overnight period and a higher peak period. It is mainly useful when a large, controllable load can run overnight, such as an EV charger, battery system or some appliance schedules. For a deeper look at that option, see our page on the Ultra-Low Overnight Electricity Rate and our comparison of time-of-use vs ultra-low overnight.

Check the Ontario Energy Board and your utility for current rate amounts before deciding. The structure matters as much as the posted rate.

Most Ontario residential customers can choose, but the best plan depends on your load pattern

Most residential and small business customers on the Regulated Price Plan can choose their electricity price plan through their utility account. Customers with a retailer contract, bulk-metered building, sub-metered condo, certain commercial accounts or special billing arrangement may have different rules.

Your local utility is the enrolment point. In Toronto and the GTA, that could be Toronto Hydro, Alectra, Oakville Hydro, Burlington Hydro, Oshawa Power, Elexicon, Hydro One or another distributor depending on the address. The rate plan affects the commodity portion of the bill, not the physical safety or capacity of the electrical service.

The practical question is how your home actually behaves:

• EV charging: if the vehicle can reliably charge after midnight, ULO or time-of-use can be attractive. If charging happens right after work during peak evening demand, the benefit may disappear.
• Electric heating: baseboards, heat pumps with electric backup, heated floors and garage heaters can run when the thermostat calls. If that call lines up with peak periods, tiered pricing may be simpler unless controls can preheat or schedule safely.
• Home offices: computers, monitors, printers, servers, extra lighting and climate control make daytime use unavoidable. A work-from-home household may not be as flexible as a commuter household.
• High evening appliance use: cooking, dryer loads, dishwasher cycles, pool pumps, dehumidifiers and entertainment equipment can stack on top of peak periods if everyone gets home at the same time.

A bill comparison tool is helpful, but it is backward-looking. If you are adding an EV charger, finishing a basement, installing a hot tub or changing heating equipment, your future load may be different from last year’s bill.

The electrical work is about shifting demand safely, not changing the meter

Changing rate plans is usually an account setting with the utility. The electrician’s role is different: we help make the home capable of using power at the right time without overloading circuits, misusing extension cords or creating nuisance tripping.

That work can include smart switches, timers, load controllers and dedicated circuits. A timer can move a dishwasher, exterior lighting transformer or recirculation pump away from peak periods. A smart switch can schedule lighting, fans or selected plug loads while still allowing manual control. A properly installed load controller can manage a large 240V load where panel capacity is tight.

EV charging is the clearest example. The charger may be capable of scheduled charging, but the branch circuit, breaker size, wire route, GFCI requirements, disconnecting means where required and load calculation still matter. If the panel is close to capacity, a load-management device may avoid unnecessary service work while still allowing overnight charging.

For electric heating, the details are different. A hardwired heater should be on an appropriate circuit with correct breaker sizing, conductor size, thermostat control and clearances. We do not recommend using plug-in heaters as a long-term rate-plan strategy; the safer solution is permanent wiring designed for unattended operation.

An energy audit is useful when the bill does not match what the homeowner expects. We look for the loads that actually matter: EV charging time, electric water heating, baseboard zones, sump or sewage pumps, pool and spa equipment, old lighting, always-on electronics, panel capacity and obvious wiring defects. Rate-plan selection works best when paired with real load information, not guesswork.

Apply through your utility and keep electrical paperwork for new loads

To change between time-of-use, tiered and ULO pricing, start with your local utility account. The process is typically handled online or through customer service. Confirm current eligibility, rates and any switching rules directly with the utility before making the change.

Before applying, collect a few bills and look at usage by time period if your utility portal provides it. For homes with an EV, compare charging logs with the utility time blocks. For home offices, check whether daytime consumption is from work equipment, heating, cooling or other appliances. For electric heating, winter bills are usually more useful than summer bills.

When electrical work is part of the plan, the paperwork matters. For new circuits, EV chargers, panel work, hot tub wiring, generator interlocks or other notifiable work, City Power files ESA notifications where required and arranges inspection. The documents that may be useful for your records include:

• the written estimate and final invoice describing the electrical scope
• ESA notification and inspection documentation where required
• load calculation information for EV chargers, heaters, hot tubs or service upgrades
• equipment documentation for chargers, load controllers, smart switches or timers
• panel labelling showing the new circuit or controlled load

This paperwork does not choose the rate plan for you. It gives you a clean record of what was installed, what loads were added, and that the work was completed through the proper electrical process. That can matter for insurance, condo boards, landlords, future buyers and utility coordination.

For broader incentive research, start with our rebates and electrical programs hub. Some energy upgrades may also relate to the Ontario Home Renovation Savings Program, depending on current rules and eligible measures.

City Power helps make the chosen rate plan practical in the home

City Power Electrical Services is a licensed Ontario electrical contractor, ECRA/ESA #7015314, founded and run by Sam, a licensed electrician with fifteen-plus years in the trade. We serve Toronto and the GTA from our North York office at Sheppard and Don Mills.

For a rate-plan decision, we do not pretend every home should choose the same option. We look at the loads that drive the bill and the electrical limits that determine whether those loads can be shifted safely. A condo with one EV charger, a detached home with electric heat, a family running laundry every evening and a home office with network equipment all need different advice.

Typical ways we help include installing scheduled smart controls, adding dedicated circuits, checking whether an EV charger can charge overnight without overloading the panel, reviewing nuisance breaker trips, correcting overloaded receptacles, and identifying loads that should not be on shared circuits. We also provide free written estimates, clean up fully, and permit work with the ESA where required.

If you are deciding between time-of-use, tiered and ULO, start with your utility’s current rate comparison, then call us when the answer depends on wiring, controls, panel capacity or load shifting. The cheapest rate plan is the one your home can actually use safely.