Smart meter customers will see an increase on electricity bills next month, the Ontario Energy Board said on Monday.

An average increase of $2.11 per month on hydro bills for customers with smart meters will come into effect on Nov. 1.

The increase affects about 3.1 million residential and small business customers on "time of use" billing.

For a customer who typically uses 800 killowatt hours per month the increase means a 1.8 per cent price rise.

Customers not on a smart meter will see an increase of only 20 cents per month. But the break in the bill disappears in summer when rates will go a little higher than for people on smart meters.