Operating a heat pump is usually cost comparable with a furnace, yet people often see their winter electricity bill “rise.” What’s going on? Aren't heat pumps more efficient?
Yes! They are, but something is happening that has more to do with accounting than energy efficiency.
Firstly, you’re now heating with electricity rather than gas. That means you're paying your winter heating bill to Toronto Hydro instead of Enbridge. That’s key because Enbridge has a different billing system than Toronto Hydro.
Enbridge spreads the cost of your winter gas use over the whole year. In other words, your January gas bill never feels crazy because you’re still paying it off (in increments) in June! Enbridge calls this the Equal Monthly Payment Plan, or just Equal Billing for short.
Equal billing has a psychological advantage: it feels better to pay a bill off in small chunks over the year, rather than in one lump sum. But most people pay the full sum of their electricity bill every month.
The good news is that Toronto Hydro also offers equal billing, which can really take the sting out of winter electricity bills. They call it the Equal Payment Plan, and you can switch to it in your Toronto Hydro account. You can also call their customer support line (416-542-8000).