50,000 smaller Ontario manufacturers miss out on the 17 per-cent cut to electricity bills

Although it may not be a deliberate oversight, thousands of businesses — nearly 50,000 — missed out on the recent 17% cut to electricity bills. Literally, they are “between” two programs — too big for one program, too small for the other.

 

Small to mid-sized manufacturers may be left out of electricity rate incentives in Ontario.

 

The program cuts were initiated by the previous Liberal government, reducing bills for residential electricity consumers, and 500,000 or so manufacturers. Although the program was expanded, it missed out, perhaps on a technicality, 50,000 smaller companies in Ontario, including manufacturing, industrial, commercial and municipal facilities.

 

“We feel that a lot of manufacturers are the middle child that is completely left out,” said Jocelyn Bamford, from the Coalition of Concerned Manufacturers.

 

Currently, the Ontario Ministry is not certain how many “fell between the cracks” on the expanded industrial program, but it’s likely “thousands” said Glenn Thibeault, Energy Minister.

 

 

Competitive issues

Aside from affordability, the Coalition cited concerns over competitiveness and pricing. Given how much power is typically used in manufacturing, it can impact either pricing or the bottom line profit.

In a story on Canadian Manufacturing, the president and CEO of Kisko Freezies, Mark Josephs said he paid $277,000 in 2017 for hydro, a full $100,000 more than in 2015. His firm is, apparently, among those who will not immediately see a benefit from the reduced rates.

The minister is aware of the issue: “The two to four percent, while I know that’s modest, there is the Save on Energy (conservation) programs that they can use as well and we’re encouraging that.” He indicated they will continue working with the companies in the middle. Many of the smaller manufacturers do not have the margin to absorb increased costs. Even a modest drop in hydro costs would make a difference in competitiveness or profit.

Did you miss this?

Other Popular Stories

  • Inter Pipeline will spend $2.6 billion to transport bitumen to oil sands projects
  • Industrial chemicals producers report second-most profitable year
  • Helicopter flight simulator to train offshore rig pilots in Newfoundland
  • Regina refinery will reuse all water with GE wastewater technology
  • World's building industry told to decarbonize, cut emissions drastically
  • Engineering and building under water — how is it done, and the modern use of Cofferdams
  • Largest biomass power plant in NA set to open in Atikokan
  • Google Increasing Artificial Intelligence in Military Spy Drones
  • Trucking industry moving toward use of EOBRs
  • Bombardier flies new CSeries jet for first time
  • GM investing $250 million at Ingersoll plant
  • Solar Powered Cars — how practical is it; who is working on it; when is it coming? 5 companies profiled.
  • Canada's auto sales soar; Toyota passes 100K mark for hybrids
  • $1 billion injection from Quebec government will keep Bombardier aloft
  • Williams Advance Engineering Develops Ground-Breaking Aerofoil
  • Bid deadline today for Canada's new search and rescue aircraft
  • Engineers being heroes: helping bring much-needed water to some of the 1.8 billion people who desperately need it
  • TransCanada submits new, more costly proposal for Energy East pipeline
  • Canada one of the world’s most energy-intensive countries: 15 percent energy reduction possible through lighting, computer and HVAC retrofitting: Conference Board of Canada Report
  • Government investment, weakening dollar, stronger US economy could spell relief for Canada's manufacturers
Scroll to Top