The Ontario Energy Board’s off-peak (7pm-7am) time-of-use rate is currently 6.5 cents per kWh. However, it is well known that during overnight hours (11pm-7am), Ontario’s electricity supply is usually higher than its electricity demand. This results in shutting down or exporting our electricity at a financial loss, and this reduced revenue must be replaced by increased costs to taxpayers or ratepayers.
Therefore, the Ontario Energy Board should introduce a reduced overnight time-of-use rate of 2 or 3 cents per kWh between 11pm-7am. This will improve Ontario’s financial and environmental sustainability by:
1) Encouraging some electricity consumption to shift to overnight, resulting in less natural gas peaker plant operation during the day.
2) Encouraging adoption of electric vehicles, since they are mostly charged overnight.
3) Increasing revenue for Ontario’s overnight electricity, which will prevent cost increases for Ontario taxpayers and ratepayers.