Ontario rolls out 'ultra low' overnight hydro rate to encourage demand shift

Hydro customers across Ontario can soon choose a new "ultra-low"overnightrate, aimed at people who use more electricity at night, includingelectricvehicle owners who need to charge their cars.

Energy Minister Todd Smith says the new rate will be 2.4 cents per kilowatt hour everydaybetween 11 p.m. and 7 a.m., which is67 per cent lower than the current off-peak rate.

If customers choose that plan it will be in exchange for a higher on-peak rate.

Smith says it could appeal to customers who electrically heat their home, charge theirelectricvehicleovernightor who are shift workers.

"The new ultra-low overnight price plan will give families and small businesses who use more electricity overnight more ways to save," Smithsaid in a statement.

He says the new rate isa way to shift demand to a period when it is typically lower and when Ontario produces excess electricity, adding that it could save customers$90 per year.

Starting May 1, Toronto Hydro, London Hydro, Centre Wellington Hydro, Hearst Power, Renfrew Hydro, Wasaga Distribution, and Sioux Lookout Hydro will offer the new pricing, and all utilities will be required to offer it within six months.