Wednesday, November 24, 2010

The real cost of TOU

The utilities and the government are nonchalantly brushing off claims that hydro customers in Ontario can't save money by shifting their consumption to off peak hours. The reason for that is simple, the TOU rates quoted don't include the fixed base charges, which include delivery, regulatory fees, and debt retirement charges. And the HST.

Once you factor in those added costs, off-peak use only has a 33% advantage over on-peak. Also consider that under the old system, the cost of electricity at any time was about 5.5 cents, it's no wonder that TOU is a losing proposition for the consumer.

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