Ontario Electricity Prices Drop for Households as Rebate Shrinks

Ontario Electricity Prices Drop for Households as Rebate Shrinks

Yes, the Ontario Energy Board’s announcement on October 16 2026 shows electricity prices under the Regulated Price Plan are decreasing year-over-year. This allows the Ontario Electricity Rebate to drop to 15.7% while the overall rate of increase for customer bills remains consistent with previous years. For a typical residential customer using 700 kWh monthly the OER adjustment will decrease bills by about $23 each month. This net effect could lower electricity costs for many Ontario households starting November 1 2026.

OEB Sets Winter TOU Prices and Tier Adjustments

The OEB updated the Regulated Price Plan rates effective November 1 2026. Winter time-of-use hours begin and the threshold for residential tiered pricing changes to provide an extra 400 kWh per month at the lower winter rate. These updates reflect lower prices compared to the prior year allowing the government rebate cut without exceeding expected bill growth.

Table 1 – Winter TOU Prices Effective November 1 2026

| Winter TOU Price Periods | November 1 2026 TOU Prices | |---------------------------|-----------------------------| | Off-Peak Weekdays | 7 p.m. – 7 a.m. all day weekends and holidays | 9.1¢/kWh | | Mid-Peak Weekdays | 11 a.m. – 5 p.m. | 14.6¢/kWh | | On-Peak Weekdays | 7 a.m. – 11 a.m. and 5 p.m. – 7 p.m. | 18.9¢/kWh |

Residential small business and farm customers may select from time-of-use tiered or ultra low overnight plans. The OEB offers an online bill calculator at oeb.ca/choice to model personal impacts based on usage patterns and chosen plan.

Ontario Electricity Rebate Reduced to 15.7%

The government adjusted the Ontario Electricity Rebate to 15.7% effective November 1 2026. Electricity prices under the OEB’s RPP are decreasing year-over-year which permits the rebate reduction. The overall rate of increase for customer bills will remain consistent with previous years. The total bill impact for individual customers across the province may vary depending on the customer’s electricity usage and the utility that serves them.

For a typical residential customer who uses 700 kWh of electricity per month the OER will decrease bills by about $23.00 each month. This adjustment means households receive a smaller rebate percentage but benefit from the lower base rates set by the OEB. The mechanism ties the rebate directly to the regulated prices so when prices fall the rebate dollar amount shrinks while the net bill change stays in line with historical patterns.

Price Plan Options Explained for Households

Customers choose their pricing structure to match their habits. The ultra low overnight plan targets cheap nighttime use.

Table 2 – Ultra Low Overnight (ULO) Price Plan Effective November 1 2026

| ULO Price Periods (Year-round) | November 1 2026 ULO Prices | |--------------------------------|-----------------------------| | ULO Ultra-Low Overnight | Every day 11 p.m. – 7 a.m. | 3.7¢/kWh | | ULO Weekend Off-Peak | Weekends and holidays 7 a.m. – 11 p.m. | 9.1¢/kWh | | ULO Mid-Peak Weekdays | 7 a.m. – 4 p.m. and 9 p.m. – 11 p.m. | 14.6¢/kWh | | ULO On-Peak Weekdays | 4 p.m. – 9 p.m. | 37.7¢/kWh |

The tiered plan uses blocks of usage with a winter adjustment for residential customers.

Table 3 – Winter Tiered Prices Effective November 1 2026

| Winter Tier Thresholds | November 1 2026 Tiered Prices | |------------------------|---------------------------------| | Tier 1 Residential – first 1,000 kWh/month | Non-residential – first 750 kWh/month | 11.2¢/kWh | | Tier 2 Residential – for electricity used above 1,000 kWh/month | Non-residential – for electricity used above 750 kWh/month | 13.2¢/kWh |

The lower winter threshold gives residential users an additional 400 kWh at the cheaper rate. This helps manage higher winter demand while the seasonal pricing reflects grid conditions. Time-of-use rates charge more during peak hours when demand and costs are higher encouraging shifts in usage such as running appliances overnight or in the morning instead of evening.

These options provide flexibility. Households can compare plans using the OEB calculator to find which best fits their schedule and usage volume. The lower overall price levels mean even with the smaller rebate the typical bill is expected to reflect only the same increase rate as in prior periods.

Bill Support Programs and Winter Protections

Help is available for customers who need assistance with bill payments. Low-income bill payment support programs operate through oeb.ca/billhelp and ontario.ca/yourelectricitybill. The winter disconnection ban prevents distributors from cutting residential service for non-payment between November 15 2026 and April 30 2027. These measures provide additional stability during the colder months when electricity use often rises.

The combination of declining RPP prices and the adjusted rebate aims to keep household energy costs manageable. Small businesses and farms face the same rate structures so operational costs may ease slightly though impacts depend on individual consumption levels. The announcement separates the price decrease mechanism from the rebate percentage change to maintain predictable bill growth.

Overall the November 1 2026 changes reflect a coordinated approach where lower regulated prices support the rebate reduction. Households should monitor their bills once they arrive in November to see the exact impact based on their usage and plan choice. The OEB continues to offer tools and resources to help Ontario households navigate these updates.

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