Ontario Helping Small and Medium-Sized Businesses Lower Electricity Costs

New pilot program will increase consumer choice and support provincial grid

December 14, 2022


Table of Contents

  1. Content
  2. Quick Facts
  3. Additional Resources
  4. Related Topics

TORONTO – The Ontario government is launching a new pilot program to explore dynamic electricity pricing and its ability to lower electricity bills for small and medium-sized businesses including retail stores, commercial offices and farms. This new program builds on the government’s commitment to give consumers more control of their energy bills while benefiting the provincial grid.

“Keeping electricity costs down for businesses helps create jobs and promote economic development,” said Todd Smith, Minister of Energy. “That’s why we’re launching our new dynamic pricing pilot to give them more choice in how they use and are billed for electricity – just like we’ve done for residential consumers.”

The pilots will test alternate pricing structures that encourage participants to shift electricity consumption to hours where electricity demand is low, helping to reduce costs for businesses. The pilots will help inform the government on the potential for alternate pricing options to provide electricity system benefits and in turn, lower electricity bills for all customers.

Small and medium-sized businesses, farms and community centres that are included in the Class B electricity rate class and don’t have access to time-of-use or tiered rates may be eligible to participate in the new pilot program.

This builds on the government’s commitment to provide more choice to all electricity consumers. Residential and some small business consumers already have the opportunity to select the price plan – Time-of-Use or Tiered – that keeps their bills lowest. The government is also launching a new ultra-low overnight electricity price plan that will be available to consumers next year, helping to support the adoption of electric vehicles.

The government has directed the Independent Electricity System Operator (IESO) to work with the Ontario Energy Board (OEB) to deliver these dynamic pricing pilots. The OEB plans to open applications for the program by the end of 2022.

Quick Facts

  • The government is keeping electricity costs down for all businesses through its Comprehensive Electricity Plan which is reducing electricity costs by between 15 to 17 per cent.
  • “Dynamic” pricing refers to prices that vary depending on the weekday or hour of the day.

Additional Resources

Manage energy costs for your business

Learn more about the dynamic pricing pilots

Related Topics

Business and Economy

Information about Ontario’s economy and how to do business here. Includes economic development opportunities, research funding, tax credits for business and the Ontario Budget. Learn more

Environment and Energy

Learn more about how Ontario protects and restores wildlife and the environment. Includes information on conservation and the electricity system. Learn more