Open this photo in gallery Power lines run out of the the Hydro One Claireville Transfer Station, in Vaughan, Ont. Tim Fraser/The Globe and Mail

Ontario is temporarily slashing hydro rates for families, farmers and small businesses amid the COVID-19 crisis.

Premier Doug Ford, alongside Energy Minister Greg Rickford, announced Tuesday that the province will lower rates for at least six weeks to offset higher consumption as more people work from home or remain in self-isolation.

“We know this is a challenging time for all Ontarians who are doing the right thing by staying home. We realize this means people are using more electricity during the day,” Mr. Ford said at Queen’s Park.

Story continues below advertisement

“To help families and households across the province, we are switching to off-peak, ‘time of use’ electricity rates, saving customers over 50 per cent compared to peak rates, for the next 45 days.”

Mr. Ford said small business and farmers will also be eligible for reduced rates.

“This means you will pay the lowest rate possible, 24 hours a day, seven days a week,” he said.

The estimated cost will be $162-million in lost revenue, Mr. Rickford later said.

“No action is required from electricity consumers. This change will happen automatically,” he said.

The Ontario Energy Board is also extending the current ban on electricity disconnection for households and small businesses that fail to pay their utility bills to July 31.

Starting Tuesday, rates will be lowered to the current off-peak rate of 10.1 cents per kilowatt hour. Currently, the mid-peak rate is 14.4 cents and the on-peak rate is 20.8 cents. On-peak hours are 7 a.m. to 11 a.m. and 5 p.m. to 7 p.m. on weekdays; off-peak hours are 7 p.m. to 7 a.m., as well as weekends and holidays.

Story continues below advertisement

The government estimates families will save more than $20 per month, while small businesses will save $150 and farms will save more than $300.

Mr. Ford recently said “relief” is coming to Ontario families who are staying home during the coronavirus pandemic, adding that his government wants to give people flexibility during difficult times, allowing them to do laundry or run the dishwasher any time of day.

Ontario Premier Doug Ford is ordering the closure of all non-essential businesses in the province to help deal with the spread of COVID-19. Ford says the order will be effective Tuesday at 11:59 p.m. and will be in place for at least 14 days. He says he will release the list of businesses Tuesday that will be allowed to stay open, but food will remain on the grocery store shelves and people will still have access to medication. The Canadian Press

Sign up for the Coronavirus Update newsletter to read the day’s essential coronavirus news, features and explainers written by Globe reporters.