On November 1, Ontario is introducing a new electricity pricing plan — if you work from home, you might want to switch to it

When the Ontario Energy Board - or OEB - announced last month that fixed rates in response to COVID-19 were ending Nov. 1 and that it was now offering two options for billing, John Purvis, a retiree from Colborne, Ont., found himself with more questions than answers.

The two options - time-of-use pricing, where customers are billed different amounts for peak, mid-peak and off-peak hours, and tiered pricing, which provides up to 1,000 kWh (kilowatt hours) in winter for a flat hourly rate and a higher rate for usage exceeding that level - have some consumers feeling left in the dark about what's right for them.

Is there a program or phone app that will let me know what my daily usage is and when I'm reaching my first-tier limit if I use tiered pricing?" Purvis asked. I don't want sticker shock at the end of the month."

The rate hike and pricing choices have left many people wondering what it all means for their daily hydro use - and indeed, their monthly bills.

During the onslaught of the pandemic in March, the Ontario government initiated a fixed rate for residential electricity use of 12.8 cents per kilowatt hour (kWh), no matter what the time of day. As of Nov. 1, that rate will disappear and the total bill for a typical residential customer will increase by about two per cent, according to the OEB.

Now, however, Ontarians will be able to choose between the previous standard time-of-use (TOU) pricing and tiered pricing.

We are offering customers the flexibility to choose an electricity price plan that best suits their lifestyle and keeps their bills low," said Alex Puddifant, spokesperson for the Ontario ministry of energy, northern development and mines. The previous government offered a one-size-fits-all approach when it came to electricity pricing plans. We've listened to the concerns of Ontarians and are offering choice to hardworking Ontarians," Puddifant said in an email.

Under TOU prices this winter, consumers will pay 21.7 cents per kWh during peak hours, 15 cents in mid-peak hours and 10.5 cents in off-peak hours. Customers pay a lower rate when demand is low.

Peak hours are from 7 a.m. to 11 a.m. and 5 p.m. to 7 p.m. on weekdays. Mid-peak pricing is in effect from 11 a.m. to 5 p.m. on weekdays, and off-peak prices kick in from 7 p.m. to 7 a.m. on weekdays, and all day Saturday and Sunday.

Using tiered pricing, consumers pay a 12.6 cents per kWh for up to 1,000 kWh (in winter) and a 14.6 cents per kWh for any usage above that level. Rates may change for the summer under either plan, since the OEB usually reviews them twice a year.

These price increases are separate from delivery charges, which are determined by your utility, such as Toronto Hydro, with each charge appearing separately on your bill.

Your utility is also the place to request information about whether you're reaching your tier limit, says OEB spokesperson Mary Ellen Beninger.

John Lawford, executive director and general counsel for the Ottawa-based Public Interest Advocacy Centre, says the OEB's pricing options are simply a smokescreen to obscure the real news, which is the price hike.

Just know that you're getting a price increase - that's what's getting snuck by us," Lawford said. I would like to see COVID pricing continue through the winter."

The OEB has created a calculator for those who want to compare the prices they'll pay for electricity under TOU pricing and the tiered scheme, which is available on its website. Consumers will need at least one past bill to plug in rate information for a comparison.

The province also assists customers in making a decision by offering two examples on its website, which suggest time-of-use rates may work best for people who are out of the house and use less electricity during the weekday, and tiered rates may be the way to go for people using more electricity during the weekday.

Guy Holborn, director of the Ivey Energy Centre at Western University, tested out the calculator based on a typical household; the average residential use per month is 700 kWh. In November, the TOU bill would be $118; the tiered bill would be $114.

A consumer would probably save about three per cent on monthly bills, which could offset the increase, although monthly usage varies, with consumers generally using the least electricity in May and the most in July," Holborn said. Each household should spend a few minutes using the rate calculator to determine their exact savings."

Back in Colborne, Purvis is also running the numbers based on his household bills.

My assumption is that the OEB is trying to make things better for the customer, but they're making money either way," he said.

If you want to remain with TOU pricing, you can stand pat; your TOU scheme will continue. If you prefer tiered pricing you must request a switch through your utility; Toronto Hydro customers can do so online.

Once the information is submitted, it takes time to process. Toronto Hydro suggests you submit your form or online request more than 10 business days before the start of your next billing period for it to take effect for that period.

If you make the request too close to the start of your billing period, the utility won't be able to incorporate it in time for your next bill. You will need to wait a second billing cycle before the tiered pricing system takes effect.

At present, if you make the change from TOU to tiered pricing and are unhappy with the result, you can switch back. Of course, it will mean filling out another form, submitting it, and waiting for the change to take hold.

The third option is to use an energy retailer to get a long-term deal for your electricity at a fixed price. However, be careful; you'll want to ensure that you really will be saving money over time. Many retailers lock you into a contract and breaking that contract could come with high penalties.

There is no way you are going to gain more money by dealing with a retailer," Lawford said. Don't discuss your energy contract with anyone right now; this change in pricing and options is between you and your utility.

Any change in government billing practices always leads to opportunistic fraud."

For those consumers worried about their ability to pay their electricity bill, take heart. Both electric and natural gas utilities are banned from disconnecting residential customers for nonpayment from Nov. 15 until April 30, Beninger says.

In addition, there are assistance programs available. The COVID-19 Energy Assistance Program (CEAP) provides eligible residential electricity and natural gas customers a one-time, on-bill credit to help catch up on energy bills and resume regular payments. The Ontario Electricity Support Program (OESP) provides low-income consumers with a monthly on-bill credit on an ongoing basis to help reduce their electricity bill.

Elaine Smith is a Toronto-based writer and a freelance contributor for the Star. Reach her via email: ersmithwriter@gmail.com