Customer Choice Billing – “Time-of-Use” or “Tiered pricing”

If you’re a residential or small business customer that pays Time-of-Use (“TOU”) electricity prices by default, you may elect to switch to Tiered prices if desired.

To switch from TOU to Tiered prices, you must notify Hearst Power by completing an election form, available online at HPDC customer Election Form or by contacting us via email at service@hearstpower.com or via telephone at 705-372-2815

If you want to learn more or wish to compare scenarios using the Customer Choice calculator, you can visit oeb.ca/choice.

About TOU Prices

With TOU prices, the price depends on when you use electricity. You can help manage your electricity costs by shifting your usage to lower price periods when possible.

There are three TOU periods:

Off-peak: When demand for electricity is lowest. Ontario households use most of their electricity – nearly two thirds of it – during off-peak hours.

Mid-peak: When demand for electricity is moderate. These periods are during the daytime, but not the busiest times of day.

On-peak: When demand for electricity is generally higher. These are the busier times of day – generally when people are cooking, starting up their computers and running heaters or air conditioners.

People use electricity differently depending on the season, so the TOU price periods are different in the winter than they are in the summer.

About Tiered Prices

With Tiered prices, you can use a certain amount of electricity each month at a lower price. Once that limit (called a threshold) is exceeded, a higher price applies. For residential customers, the threshold normally changes with the season to reflect changing usage patterns – for example, there are fewer hours of daylight in the winter and some customers use electric heating.

In the winter period (November 1 – April 30), the Tier threshold for residential customers is 1,000 kWh so that households can use more power at the lower price. In the summer period (May 1 – October 31), the Tier threshold for residential customers is 600 kWh.

For small business customers, the Tier threshold is 750 kWh all year round.

Tiered prices give you the flexibility to use electricity at any time of day at the same price, although that price will change if you exceed the threshold during the month.

Considering a Switch?

Are you thinking about opting out of TOU prices in favour of Tiered prices? Here are a few things to consider. Make sure you have some of your recent electricity bills handy as you go through the information below.  Most of the information you will need is on the Electricity line of your bill.  When choosing your price plan, consider the following:

Your current price plan

Do you pay TOU or Tiered prices for your electricity? If you’re unsure, take a look at the Electricity line of your bill. Most residential and small business customers in Ontario pay TOU prices.

Your usage

How much electricity do you use in a month? If you’re unsure, take a look at the Electricity line on your bill. You might also want to look at the historical usage graph on your bill, which shows your average daily usage over the past 12-month period.

Your consumption pattern

When you use electricity can be another factor in your choice. Historically, the typical residential customer who paid TOU prices has used nearly two thirds of their power at off-peak times – the time when the lowest TOU price applies. The other third of their power used was typically split equally between on- and mid-peak times. Look at the Electricity line of your bill to see how much power you use in each of the three TOU price periods.

Seasonal changes and time of year

As described above, the TOU price periods and Tier thresholds change with the season and are different during the winter (November 1 – April 30) and summer (May 1 – October 31) periods. Does the amount of electricity you use change based on the season?

If you’re thinking about switching, you should pay close attention to how much electricity you use in a month, because on Tiered pricing the price is higher for every kWh of electricity that you use above the Tier threshold of 1,000 kWh in the winter or 600 kWh in the summer. For instance, if you heat your home electrically, your monthly use in the winter may be higher. And the same goes for the summer if you need to run your air conditioner.

With TOU prices, the price depends on when you use electricity. Although the TOU price periods also change with the season, the electricity you use after 7 p.m. every day, and all the time on weekends and holidays, is charged at the lowest price under TOU all year round.

Lifestyle and daily habits

Are you often home during the day on weekdays, so that shifting your usage is more challenging? Do you have large appliances that you need to run during the day on weekdays? Can you shift more of that usage to nighttime or weekend hours?

Small business

If you’re a small business owner, some of the same factors mentioned earlier also apply – how much electricity do you use each month, and when do you use it? Keep in mind that the Tier threshold for small business customers is 750 kWh all year round. And not all small businesses are the same. A large restaurant with several ovens running in the evening may have a very different electricity usage pattern than a small salon that’s only open during the day. So may a dry cleaner compared to a convenience store, or a clothing store compared to a bakery.