Even keeping the lights on will soon cost you more of your hard-earned money, with an upcoming electricity rate hike in the works that will cost the average Toronto resident over $40 per year more than what they currently pay.

Back in November, Toronto Hydro applied with the Ontario Energy Board, seeking the green light to approve hiked-up electricity distribution rates and other charges. These increased rates would take effect in just over one year, on January 1, 2025, and last until December 31, 2029.

Buried deep in documents shared by Toronto Hydro, the energy provider reveals that the average residential customer is expected to pay an additional average of $3.44 per month annually under the new rates.

The rate change would peak at $3.97 in 2028 before dipping back down to $2.86 for the final year of the five-year period.

Small businesses requiring fewer than 50 kilowatts are facing even harsher rate hikes in 2025, and would see bills rise by an average of $10.20 per month. Small businesses would be on the hook for the highest bills in 2025, paying $14.18 more monthly, before dropping to an increase of $7.29 per month by the final year of the rate hike.

Larger businesses requiring upwards of 50 kilowatts will be charged at an even steeper rate, paying a monthly average increase of $183.98, or over $2,200 annually.

Technically, these charges do not cover the actual electricity used, but instead act as a delivery charge for said power.

Toronto Hydro argues that such increases are necessary to fund the provider's planned investment of approximately $5.9 billion, which it states is required for "expanding, modernizing and sustaining the foundations of a safe and reliable grid to serve the current and future electricity needs of the homes and businesses of Toronto."

The energy provider also claims that people are just fine with paying more, citing an online survey where 84 per cent of respondents "supported the draft plan and its associated rate impacts."