TOU Rates by Province: How to Save Money on Energy Bills in Canada
Time-of-use electricity rates influence household energy costs depending on when and how you consume power. While some may see this pricing structure as an obstacle to saving money, it can actually be leveraged carefully to save you money month after month.
The first step is understanding how these rates work in your province or territory and using an alternative power source to offset peak rates. Here’s a comprehensive guide to using TOU rates to your advantage.
What Are Time-of-Use (TOU) Electricity Rates?
Time-of-use rates are variable pricing rates determined by the time of day and the season. Most TOU rate structures use peak, mid-peak, and off-peak hours to determine how much energy consumption costs at that particular time. For example, peak hours tend to be the late afternoon to early evening, when most people are home and running appliances like dishwashers, showers, and laundry units. Off-peak hours are typically overnight and early morning.
The rate differences between peak and off-peak hours can vary widely, with some people paying 2-3 times more for energy during peak hours than off-peak hours.
While this rate structure may frustrate residents, its purpose is to reduce the strain on the electric grid during periods of high demand. By incentivizing use during lower-demand periods, utility companies can better disperse the demand on their electrical infrastructure and remain resilient.
If you plan your usage around TOU rates, you can also rely on stored energy from a portable power station during peak hours, reducing dependence on the grid when electricity costs the most.
How TOU Rates Vary Across Canada
TOU rate structures differ between Canadian provinces and territories, with some offering mandatory programs and others providing optional plans.
Ontario
Hydro One and local distribution companies run Ontario’s grid. This province uses a three-tier system with peak, mid-peak, and off-peak hours considered. Rates also differ between the summer and winter since the average house uses more power in the winter, when frigid temperatures demand indoor heating.
Typical peak hours and rates in Ontario are from 11 am-5 pm on weekdays during the summer and 7 am-11 am and 5 pm-7 pm during the winter (15.8 cents/kWh). Off-peak hours fall on weekends, holidays, and overnight from 7 pm-7 am (7.6 cents/kWh), while mid-peak hours are from 7 am-11 am and 5 pm-7 pm during the summer and 11 am-5 pm during the winter (12.2 cents/kWh).
British Columbia
BC Hydro offers an optional TOU program for customers using its peak, off-peak, and overnight hours structure. Peak times are from 4-9 pm on weekdays and include a 5-cent surcharge per kWh. While there’s no discount for off-peak electricity use, residents will get a 5-cent discount per kWh of electricity used overnight between 11 pm and 7 am.
Alberta
Alberta’s Regulated Rate Option (RR) varies by region, with some utilities, like EPCOR, offering TOU options. TOU rates are not yet widespread in Alberta, but ATCO Energy is currently running programs to test them. Current competition in the market allows residents to shop around for the best rates, and as TOU structures become more widespread, they may be a promising option for some.
Quebec
Starting December 1, 2026, a TOU rate will be available for Rate D-eligible customers who can reduce their consumption during on-peak hours. Customers must submit a request to Hydro Quebec, use a grid-tied electrical system like the EcoFlow DELTA Pro 3 Solar Generator (PV400W), and get a communicating meter installed. You also can’t be signed up for Net Metering to be eligible.
Under this contract, residents will pay 10.72 cents/kWh up to 10 kWh and 21.964 cents/kWh beyond that for on-peak hours (6 am-10 am and 4 pm-8 pm during winter and 4 pm-8 pm during summer, excluding weekends and holidays).
Residents will pay 6.906 cents/kWh up to 20 kWh and 10.652 cents/kWh beyond that during off-peak hours, which are all hours that are not on-peak or overnight hours. During overnight hours, from 11 pm-6 am, residents will pay 4.972 cents/kWh up to 15 kWh and 4.972 cents/kWh beyond that.
Atlantic Provinces
Atlantic provinces like Nova Scotia, New Brunswick, Newfoundland, and Labrador have a lower TOU implementation.
However, Nova Scotia is piloting programs for customers with thermal storage heating systems such as room units, furnaces, or in-floor heating. These customers have different rates during off-peak, on-peak, and mid-peak hours. For the winter, the hours and rates are:
On-peak: 7 am-12 pm and 4 pm-11 pm, 24.195 cents/kWh
Mid-peak: 12 pm-4 pm, 19.617 cents/kWh
Off-peak: 11 pm-7 am, 12.340 cents/kWh
In non-winter seasons (March-November), customers pay 19.617 cents/kWh during mid-peak hours of 7 am-11 pm and 12.340 cents/kWh for 11 pm-7 am off-peak hours. Weekends and holidays are all off-peak at 12.340 cents/kWh.
Newfoundland and Labrador use standard pricing rates, with adjustments to peak (7 am-10 pm weekdays between December and March, and 8 am-10 pm weekdays from April to November) and off-peak periods (all other hours) for non-firm rate customers. While these rates are not provided in advance, the same formula will calculate the non-firm energy rate for all customers.
Tips To Maximize TOU Savings
Use backup power during peak hours. Consider renewable energy systems with solar battery storage, like EcoFlow 175W Rigid Solar Panels and the EcoFlow DELTA Pro Ultra.
Shift the use of major appliances to off-peak periods.
Pay attention to timing differences between winter and summer electricity bills.
Program washing machines and dishwashers to run overnight.
Use a timer for your water heater.
Install smart AC thermostats and energy monitoring systems.
Adjust your home heating and cooling schedules.
Take advantage of weekend and holiday off-peak hours all day.
EcoFlow DELTA Pro 3 Solar Generator (PV400W)
Frequently Asked Questions
What Are the Cheapest Times to Use Electricity in Canada?
The cheapest times to use electricity if you’re on a time-of-use rate plan in Canada are generally overnight, early morning, weekends, and holidays. Peak hours tend to fall during the morning, afternoon, and early evening. Check to verify differences between summer and winter hours as well.
Do All Provinces Use TOU Pricing?
Not all provinces use time-of-use pricing, but it’s available as an option in most areas. Ontario has the most comprehensive implementation of TOU plans. British Columbia, Quebec, and Alberta have some availability for TOU plans, and adoption in Atlantic Canada is limited.
TOU Rate Strategies Reduce Energy Costs in Canada
TOU rates vary among Canadian provinces and territories. If this electricity pricing option is available, consider if you could save by shifting your activities to off-peak hours or using a backup energy source, like the EcoFlow DELTA Pro Ultra. This renewable energy generation and storage system can supplement power when energy is most expensive, allowing you to capitalize on the savings during off-peak hours and reduce your bills long-term.