How Much Does Electricity Cost In Ontario? (2023)

Electricity is a major factor that connects lives every day. It’s an important part of modern life and essential to Ontario’s economy. People make use of electricity every day to perform some activities such as lighting, heating, refrigerating, cooling, and for performing operations on appliances, computers, machinery, and transportation system.

The cost of electricity in Ontario is on average $0.130 per kWh or $130 monthly as of 2020 but currently, as of Feb 8, 2022, the lower price (¢ per kWh) is 9.8 and the higher price (¢ per kWh) is 11.5. In Ontario, the variable delivery and regulatory charges depend on the OEB bill calculator.

In Canada, Ontario is the second-largest and biggest, therefore rendering various opportunities in the aspect of job security and employment. Electricity improves life for people to have a standard of living. The power generation in Ontario is a mixture of water power, natural gas, nuclear energy, and so many other renewable resources.

Electricity improves the human lifestyle through the invention of freezers and the refrigerator which improves and transforms how people keep and store food. Hospitals, companies rely on electricity to function such as providing lighting, security systems, air conditioning, etc. Generally, electricity improves the quality of work.

How much does electricity cost in Ontario?

Electricity is referred to a flow or movement of electrical charge. It’s a secondary source of energy thereby it’s used by humans every day. The cost of electricity in Ontario as of the effective date on February 8, 2022, is 9.8 (¢ per kWh) at the lower tier price and 11.5(¢ per kWh). The electricity usage is estimated and calculated in kilowatt-hours. A kilowatt-hour means 1000 watts used for one hour.

In Ontario, the kilowatt-hours number multiplied by the rate of kWh equals the cost of usage. The kWh rate is set and determined by the Ontario energy board and it’s set based on time of usage(TOU). The rate is divided and grouped into three divisions which are off-peak hours, mid-peak hours, and on-peak hours. The peak hours change between the winter months and summer months.

The cost of electricity on appliances is estimated by calculating the power used. Electricity prices are revealed through the electricity bill. This states the cost of electricity used by consumers in homes, companies, and other businesses. It also contains the cost of conservation programs. Electricity distributors ensure the delivery or supply power to their consumer’s homes and businesses.

Electricity is a basic want and necessity for human daily life and a core factor that generates revenue to increase a country’s economic growth. The cost of electricity varies greatly across the globe. The price of electricity increase and decrease it changes every day through this customers are charged depending on the seasonal demands

How can I calculate electricity costs in Ontario?

It requires budgeting most times to know and estimate the cost of the electricity consumed. It requires keeping eye on your electricity usage and ensuring the bills are correct. You can use the following steps to calculate your electricity bills

1. Find out the usage of appliances

This is the first step to take if you want to calculate your electricity bill. Some high-power appliances will use at home, by companies, and businesses. These appliances increase the voltage of electricity that will consume. So, find out all the high consuming electricity appliances like refrigerator, air conditioner, etc.

2. Calculate the electricity usage

After finding out the high electrical appliances that consume your electricity, know the watts of electricity that each device and appliance you use every day. This can be done by multiplying all the appliance wattage by the number of hours they use per day.

3. Calculate the cost of electricity for appliances

Calculating each appliance or device requires multiplying the monthly usage in kWh by the rate of electricity as set by the utility company or by the electric plan. For example monthly usage(kWh)× electric rate monthly ($/kWh)= cost of per month approximately.

4. Calculate cost per kWh

This step requires calculating the cost per kWh. To calculate cost per kWh, you will be needing the amount you pay per kWh also called electric rate as set by the supplier of electricity. You need to know the wattage of the appliance or device which can be found on the product.

You can use this formula;

Appliance wattage × number of hours used per day ÷ by 1,000 × electric rates per kWh. This will give you the exact cost per kWh.

What are the factors that determine the electricity rate in Ontario?

1. Location

Your particular location is a vital factor that is used to calculate your electricity bill or to know the cost of your electricity in Ontario. The cost of local fuels differs in a different city the same as the availability of power plant. Both factors influence the rate of your electricity bill directly.

2. Weather

Electricity rate increases, and as electricity consumption increases. Extreme weather and a high temperature usually bring a rise in electricity consumption. People tend to make use of electricity during warmer and summer months which causes demands to rise as well as the cost.

3. Fuel costs

Electricity cannot be generated, developed,  and delivered without fuel. Fuel prices differ greatly from state to state. The electricity rate is directly influenced by the price of fuel in your area.

4. Regulations

Rules and regulations differ from state to state. Some states operate on fully regulated electricity prices, while other states combine regulated and unregulated prices. Electricity regulations include transmission and distribution systems, service and utility commissions, etc.

5. The transmission and distribution

For electricity to be easily available, distribution systems are needed to be built and maintained Furthermore, to build these systems, repairs on power lines, regular upkeep, and relay stations must be created to enable the whole system to keep running smoothly. The maintenance will influence the electricity rate in your area.

Is electricity cost cheaper in Ontario?

Most people in Ontario who spend more time at home during lockdown will at least take a break from their electricity bills. The government has announced that it will reduce the cost of electricity to the current off-peak at the rate of 8.2 (¢ per kWh) on Jan 18, 2022.

Why is electricity cost so high in Ontario?

The increase in the cost of electricity depends on the consumption of electricity. The cost of electricity can become higher in the summer when we make use of air conditioners to keep our houses cool or reversely in winter. This depends on your location

How much is a kWh of electricity in Ontario?

Information about the cost of energy per kWh is written mostly on the electricity bill. Also, almost all energy retailers state and provide their specific rates on their websites, so it becomes very easy to figure it out.


How is electricity working in Ontario?

The energy sector in Ontario is regulated by the Ontario energy board and this board is responsible for the generation of electricity, the transmission of electricity across Ontario. You can search for the licensed list of retailers in Ontario on the OEB website.

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