Ontario electricity rates, average monthly costs, and how to reduce your hydro bill
If you're an Ontario resident wondering what your neighbours pay for electricity, you're not alone. Hydro bills are one of the biggest household expenses in the province — and they've been rising steadily. This guide covers the 2026 Ontario Energy Board (OEB) rates, average bills by city, and practical ways to cut your costs.
Ontario uses a Time-of-Use (TOU) pricing model set by the Ontario Energy Board. Rates vary by when you use power:
| Period | When | Rate (per kWh) |
|---|---|---|
| On-Peak | Weekdays 7am–11am and 5pm–7pm | 14.4¢ |
| Mid-Peak | Weekdays 11am–5pm | 10.2¢ |
| Off-Peak | Weekdays 7pm–7am, all weekends | 7.4¢ |
Alternatively, customers can opt for Tiered pricing: 9.7¢/kWh for the first 600 kWh/month (winter) or 1,000 kWh/month (summer), then 11.3¢/kWh above that threshold.
The average Ontario household uses approximately 750–900 kWh per month. Based on 2026 OEB rates plus regulatory charges, the typical monthly hydro bill including delivery, regulatory, and debt retirement charges breaks down as follows:
| Household Type | Monthly Usage | Estimated Bill |
|---|---|---|
| 1-bedroom apartment | 350–500 kWh | $75–$110 |
| 2-bedroom apartment | 500–700 kWh | $110–$155 |
| Small house (detached) | 700–900 kWh | $155–$210 |
| Large house (4+ bedrooms) | 900–1,400 kWh | $210–$320 |
| House with EV charging | 1,200–1,800 kWh | $265–$400 |
Bills vary by city because delivery charges differ between local distribution companies (LDCs). Toronto Hydro, Hydro Ottawa, and Enbridge Gas all have different rate structures:
| City | Average Monthly Bill | Local Distributor |
|---|---|---|
| Toronto | $135–$190 | Toronto Hydro |
| Ottawa | $145–$200 | Hydro Ottawa |
| Mississauga | $140–$195 | Alectra Utilities |
| Brampton | $140–$195 | Alectra Utilities |
| Hamilton | $135–$185 | Alectra Utilities |
| London | $130–$175 | London Hydro |
| Windsor | $125–$170 | ENWIN Utilities |
| Kingston | $140–$190 | Utilities Kingston |
| Sudbury | $145–$200 | Greater Sudbury Utilities |
| Thunder Bay | $150–$210 | Thunder Bay Hydro |
Many Ontarians are surprised to learn that the commodity cost of electricity is only part of their bill. Here's the typical breakdown:
| Charge | Description | Approximate Share |
|---|---|---|
| Electricity (commodity) | Actual energy consumed | 35–45% |
| Delivery | Getting power to your home | 30–38% |
| Regulatory charges | Ontario Power Authority costs | 8–12% |
| Debt Retirement Charge | Legacy Ontario Hydro debt | Phased out for most |
| HST (13%) | Applied to most charges | 13% |
| Monthly fixed charge | Account maintenance | ~$13/month |
If your hydro bill is a financial burden, Ontario offers several programs:
Low-income households may qualify for a monthly on-bill credit ranging from $35 to $113 depending on household income and size. Applications are processed through the Independent Electricity System Operator (IESO).
Customers on First Nations reserves receive a 100% credit on delivery charges.
Offers free energy efficiency upgrades for low-income households — things like smart thermostats, LED lighting, and insulation — which can reduce monthly bills by $20–$60.
Ontario's electricity costs are among the highest in Canada. Several factors contribute:
Run dishwasher, laundry, and EV charging after 7pm or on weekends to pay 7.4¢/kWh instead of 14.4¢.
An Ecobee or Nest can reduce heating/cooling costs by 15–20%, saving $20–$40/month.
Switching all bulbs to LED reduces lighting costs by up to 75% — around $5–$15/month saved.
Weatherstripping and caulking windows/doors can cut heating costs by 10–15%.
Washing clothes in cold water reduces energy per load by about 90%. Saves $10–$20/month.
Phantom loads (TVs, game consoles, chargers) can account for 5–10% of your bill.
| Province | Average Rate | Average Monthly Bill |
|---|---|---|
| Ontario | 14.4¢/kWh (peak) | $130–$200 |
| BC | 12.9¢/kWh | $90–$140 |
| Alberta | Variable (~13–18¢) | $120–$180 |
| Quebec | 7.0¢/kWh (Tier 1) | $60–$100 |
| Manitoba | 9.9¢/kWh | $90–$130 |
| Nova Scotia | 18.0¢/kWh | $150–$230 |
One way to reduce the sting of high hydro bills is to get more from your bank account. KOHO's high-interest savings features and cash back on everyday purchases can effectively reduce the real cost of monthly expenses.
Use our referral link to earn a $100 bonus with KOHO — Canada's smart spending account. Earn cash back on groceries, transit, and bills to offset your hydro costs.
Claim Your $100 Bonus →The average Ontario household pays between $130 and $200 per month for electricity in 2026, depending on home size, city, and usage habits. The provincial average sits around $155–$170/month for a typical detached house.
Your bill lists consumption in kWh, broken into on-peak, mid-peak, and off-peak usage if you're on TOU pricing. Delivery, regulatory charges, and HST are listed separately. The total is the sum of all these components.
Ontario's TOU rates are the same year-round, but total bills tend to be higher in winter due to greater heating demand (for electric baseboard heaters) and shorter days requiring more lighting. Summer can spike for air conditioning.
In Ontario, the commodity portion of your bill can be purchased from a Retail Electricity Provider (REP) instead of your local utility. However, many consumer advocates warn that REP rates are often higher than regulated rates — read contracts carefully.
For more financial tools, visit our mortgage calculator to plan your housing costs alongside utility expenses.