Your Next Hydro Bill Could Be 29% Higher — Without Warning

Let's be honest. Trying to understand your hydro bill is frustrating. It feels like you need a finance degree just to read the rates.

A significant shift in Ontario’s electricity pricing just happened on November 1st, 2025. You probably saw a small increase on your bill, but that number is very misleading. It’s hiding a huge, dramatic story about the true cost of power in our province.

As a homeowner, this matters directly to you and your wallet. It's not just about managing how much energy you use. It’s about making sure you aren't paying extra because of a major strategic shift far outside your control.

Here are the four surprising facts you need to know about these changes and what they mean for your utility bills.

Note: Fact 4 is the most important for you as a tax paying resident.

1. The True Cost of Power Jumped by Nearly 30%—It's Being Hidden

When you opened your bill, you likely saw an increase of only $10 to $12 per month. If you’re a typical household, that sounds manageable.

But here’s the surprise: the real cost to supply electricity jumped by a massive 29 percent. It went from 9.94 cents to 12.79 cents per kilowatt-hour (kWh).

So, why didn't your bill shoot up by that 29%? The provincial government is intentionally masking this dramatic cost spike. They achieved this by increasing the Ontario Electricity Rebate (OER) from 13.1% to 23.5%.

What this means for your bill:

• Short-Term Good News: The rebate is working. It's likely covering about $36 of the increased cost. This keeps your monthly bill increase minimal for now.

• Long-Term Bad News: The true price of electricity is significantly higher. That true cost has to be paid eventually. This leads us to our next point.

2. You’re Paying for "Affordable" Hydro Twice

That massive rebate isn't coming out of thin air. Energy experts are calling this rebate a "multi-billion dollar taxpayer subsidy." It's designed to hide the true cost of generating power.

The government spent $5.8 billion in 2023 to lower hydro bills. This new, bigger rebate will add billions more. It contributes directly to the provincial deficit.

What this means for your wallet:

• You, as an Ontario resident, pay for the subsidy through your tax dollars.

• The paradox is simple: you are essentially paying for "affordable" hydro power twice. Once through the rates on your bill, and again through your taxes to fund the rebate that makes the bill look lower. This approach is expensive and creates long-term financial strain for the province. You, the taxpayer, bear that burden.

3. The Main Reason for the Spike In Hydro Bill is an Expensive Strategy Shift

Why did the supply cost jump by 29% in the first place? It's mostly due to higher spending on nuclear power.

The government is making a huge, long-term bet on nuclear energy. They aim for it to supply over 70% of Ontario's electricity by 2050. While this promises stable energy, nuclear is an incredibly expensive option.

Studies suggest electricity from new nuclear facilities could cost more than three times as much as solar power. It could be up to 3.6 times more than on-shore wind power.

What this means for your future utility bills:

• The underlying costs of our electricity system are now locked into a high-cost path.

• Even if the current rebate keeps your bill steady, this structure suggests long-term pressure for rates to climb further. This makes your decisions about home energy efficiency more important than ever.

4. Your Rate Plan Could Now Be a Costly Trap

This is the most critical point for you right now. The recent rate changes did not affect all plans equally. Staying on the wrong plan could now cost you significantly more.

If you are on the Time-of-Use (TOU) plan, all three of your rate periods have increased sharply:

On-peak hours (7–11 a.m. and 5–7 p.m. weekdays): 20.3 cents/kWh, up from 15.8 cents.

Mid-peak hours (11 a.m.–5 p.m. weekdays): 15.7 cents/kWh, up from 12.2 cents.

Off-peak hours (weekends and statutory holidays): 9.8 cents/kWh, up from 7.6 cents.

Source: Ontario Energy Board

The most dramatic increase occurred in the popular Ultra-Low Overnight (ULO) plan. If you use a lot of power during any of the peak times, you need to check your plan immediately.

Look at the jumps across all four TOU rate periods. Even the cheapest times saw a huge increase:

TOU Rate Component	Old Rate (Pre-Nov 1st)	New Rate (Post-Nov 1st)	Cost Increase
Ultra-Low Overnight (11 p.m. – 7 a.m.)	2.8 cents/kWh	3.9 cents/kWh	39.3%
Weekend Off-Peak (7 a.m. – 11 p.m.)	7.6 cents/kWh	9.8 cents/kWh	28.9%
Mid-Peak (7 a.m. – 4 p.m. & 9 p.m. – 11 p.m.)	12.2 cents/kWh	15.7 cents/kWh	28.7%
On-Peak (4 p.m.–9 p.m. Weekdays)	28.4 cents/kWh	39.1 cents/kWh	37.7% Jump!

Source: Ontario Energy Board

What this means for your household habits:

• If you are on TOU and run appliances during the On-Peak window (4 p.m. to 9 p.m.), you are now paying a huge premium. This 37.7% jump can quickly undo any savings you get overnight.

• The "Ultra-Low" rate itself jumped by nearly 40%. This affects people who charge EVs or use electric heating overnight. You're still saving, but the cost of saving has risen drastically.

• What you should do now: You must be proactive! If you haven't checked your plan in a while, do it now. Go to your local utility's website and check your usage. Make sure your daily habits still align with your current Time-of-Use, Tiered, or Ultra-Low Overnight plan.

Take Control of What You Can

The changes show a clear paradox: your hydro bill looks fine, but the true cost of power is soaring. It's paid for by your tax dollars to fund an expensive, long-term strategy.

As a homeowner, you can’t change the provincial energy policy. But you can control your consumption and efficiency. That's where home comfort solutions come in as your best defence.

First, check your rate plan against your habits (as advised above). Then, the most important step you can take is considering home upgrades.

Things like smart thermostats, high-efficiency furnaces, and R60 home insulation give you more control over when and how much energy you use.

In an increasingly expensive energy landscape, managing your home's efficiency is your strongest protection against rising costs.

If you have decided by now to upgrade your home, feel free to contact Energy Canada Home Comfort for your energy-efficient home upgrade needs.