Ontario moving forward with 'ultra-low' overnight electricity rate

A thermostat can be seen above. (AP Photo/Eric Risberg)

The Ontario government says it's advancing plans to create an "ultra-low" overnight electricity rate.

According to the government, if the proposed plan was in place today it would offer electricity at 2.5 cents per kilowatt-hour, which is 70 per cent lower than the current off-peak rate.

Ultra-low overnight rates would come into effect everyday between 11 p.m. and 7 a.m.

In a news release Tuesday, Ministry of Energy Todd Smith said he asked Ontario's independent energy regulator, the Ontario Energy Board (OEB), to come up with a plan for a new ultra-low electricity rate.

According to the government, the OEB proposed a new electricity pricing structure that will be presented as a third option to customers, in addition to the current time-of-use and tiered plans.

"Introducing the ultra-low overnight electricity rate will help our efforts to make life more affordable for Ontario families by keeping costs down and saving them up to $90 per year while reducing EV charging costs," Ministry of Energy Todd Smith said. "Our government has put families back in control of their energy bills and we will continue this work by delivering a third electricity price plan for customers across Ontario."

According to the government, the delivery of a new ultra-low overnight rate is possible because Ontario continues to have excess electricity during overnight hours.

The government said it intends on making the new price plan available to customers by April 2023.