Time-of-Use vs Tiered pricing (Ontario): what really changes
Most confusion comes from assuming your “rate” is a single number. It usually isn’t.
Plain-language summary: TOU changes price by time of day. Tiered changes price after you use a certain amount.
Neither one changes delivery charges — which is why shifting usage doesn’t always change the total bill the way people expect.
Time-of-Use (TOU): price depends on the clock
- Electricity costs differ by time period (for example, higher during peak times).
- If you shift usage to lower-price periods, your usage cost may drop.
- Your total bill may still be influenced heavily by delivery and other charges.
Tiered pricing: price depends on how much you use
- Your first block of usage is priced at one level, then additional usage at another.
- Households with predictable, lower usage sometimes prefer the simplicity.
The mistake most people make
People focus on TOU/Tiered and ignore delivery and system cost recovery charges. So they do the work of shifting usage… and see less impact than expected.
Next: If your bill shocked you, start with Why your bill changed.