Ontario just announced a new change to electricity prices that could save customers a pretty penny, especially night owls and electric car owners.

The province announced a new "ultra-low overnight" price plan on Tuesday, which it claims will "provide consumers with more ways to keep costs down, save money and take control of their energy bills" once in effect on May 1.

Customers of local providers, including Toronto Hydro, London Hydro, Centre Wellington Hydro, Hearst Power, Renfrew Hydro, Wasaga Distribution, and Sioux Lookout Hydro, will be able opt-in for the ultra-low rate next month, which the province touts can save customers up to $90 per year.

"Our government has put families back in control of their energy bills, and the new Ultra-Low Overnight price plan will give families and small businesses who use more electricity overnight more ways to save," said Todd Smith, Minister of Energy.

"Starting May 1, customers can opt-in to the new ultra-low electricity price plan which could save them up to $90 per year, while at the same time making our grid more efficient, helping to reduce costs for all ratepayers."

Today Minister Smith announced the launch of the new Ultra-Low Overnight electricity price plan.

Local utilities are launching the new price plan starting May 1, giving customers more choice in how they pay.https://t.co/2yuQrVqR5Y pic.twitter.com/Y8TcLtCKvz

— Ontario Energy (@ONenergy) April 11, 2023

Customers will now have three options for electricity plans, adding to the existing Time-of-Use (TOU) and Tiered plans offered in Ontario.

The plan caters to people using the bulk of their electricity during off-peak hours, like shift workers or customers that rely on overnight electrical vehicle charging.

Its rate of 2.4 cents per kilowatt-hour (kWh) is 67 per cent lower than the current off-peak rate, though these savings come with much higher rates for electricity use during peak periods of demand.

As cheap as those off-peak prices may be, customers would pay a whopping ten times that rate during on-peak periods of weekdays from 4 p.m. to 9 p.m. Rates include 7.4 cents per kWh during weekend off-peak hours and 10.2 cents per kWh for mid-peak usage hours.

Savings for customers are just one side of the equation, and by shifting demand to off-peak hours, the province projects potential capacity cost savings for the electricity system of up to $5.7 million per year province-wide.

The province's latest energy price cut comes just a few months after a broader off-peak electricity price decrease that went into effect on November 1.

According to the Ontario Energy Board, that decrease averaged out to a savings of almost $14 per month per customer.