Canadian Manufacturing

Food and Beverage Ontario proposes changes to industrial electricity rates

FBO is asking Ontario to make electricity bills simpler, lower and predictable

May 28, 2019  by CMO Staff

Guelph – Food and Beverage Ontario will be releasing its submission to the Ontario government’s consultation on industrial electricity rates at the organization’s annual conference on May 28.

The submission makes a case for public policy reform that will ease the pressure on Ontario food and beverage manufacturing businesses to help create jobs in our province.

“The Ontario government is on the right track to make Ontario even more open for business. We look forward to working with the government to address high and unpredictable electricity prices,” said Norm Beal, CEO, Food and Beverage Ontario. “Business, and specifically manufacturing, is the economic engine of the province, providing jobs and stability for the people of Ontario.”

FBO is asking the Ontario government to make electricity bills simpler, lower and predictable so that the electricity a business consumes relates to the amount due on the electricity bill.

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“Businesses need predictability in electricity prices to be competitive. Kisko is a GTA-based company that makes freezies and recently we experienced a 23% increase from one electricity bill to the next after consuming less electricity,” said Mark Josephs, CEO, Kisko Products and Food and Beverage Ontario Director.

Specifically, Food and Beverage Ontario recommends:

  1. Remove all, or a significant portion, of the costs contained in the Global Adjustment from Ontario businesses’ electricity bills, either by transferring the costs to the provincial government or some other means. This change would have the effects of stabilizing and lowering the costs of electricity, thereby making Ontario even more open for business. It would also restore some semblance of a price signal thereby supporting rational decision-making and increasing conservation.
  2. Eliminate the unfairness of the Industrial Conservation Initiative which sees smaller companies subsidizing larger ones, but without increasing electricity bills of those larger ratepayers. This will require a more fundamental change by removing costs from the system, rather than just adjusting the existing cost structure.
  3. Increase the transparency and consistency of electricity bills so all industrial ratepayers in Ontario have better information to make better business decisions and to increase the accountability to the system’s users by those who manage the system.

To receive a copy of the organization’s latest paper on industrial electricity pricing, register for the 2019 Annual Conference – Creating Growth in an Era of Uncertainty.