All hands on deck: that’s what we’re hearing from Doug Ford and the conservative government.
We’re seeing a lowering of electricity rates for consumers of ontario during the covid-19 pandemic, and in order to help, the government is implementing a number of measures. we have put together a video series explaining these.
Moreover, we see it at the pumps, with current rates inching towards under $0.70 per litre. The deadlines for filing your taxes have been pushed back, and other stimulus packages have been implemented to lessen the severity felt by the average working Canadian.
What do these new measures mean for the larger manufacturing plants, or industries in Ontario?
For example, the rate payers that have a peak demand greater than 50kW? Class A and B consumers pay HOEP and global adjustment fees. Will these scaled-back protection measures affect their monthly operating costs? The answer is no.
These large energy consumers will have to restructure their processes to keep production, and manufacturing (essential businesses) running, while determining how to mitigate risks of running in peak times. How long can we hope that a feasible plan will be implemented by this government or the next that will look at the bigger issues of the incurred debt from previous investments? With the bottom falling out of the oil market, and a government still trying to figure out their next move, cogeneration or prime power strategies grow increasingly reliable and cost effective.
The surcharges are here, and the present government is spending $5.6 billion to subsidize electricity prices at the current rates. With the current elimination of peak times for the average electricity consumer in the province coming in at $161 million; the duality of these costs begins to paint the dire need for action, especially for the Class consumers.
Will these new sweeping electricity rate changes affect people in Canada?
Is there any change to keeping the lights on in the province?
Nope, the power will stay on.
However, for Class A and B consumers they will need to carry on as usual. Along with all essential industries right now, they are tasked to put the economy on their shoulders, keep the supply chains operating, and work to keep the economy functioning behind the front lines.
Perhaps it is time to let the government look after the people, which they are obviously very good at. But with regards to our electricity supply, perhaps it is the industries themselves that need to be looking to add power generation capabilities to a local micro-grid to ensure locked-in rates and manage efficiencies, all the while using proven technology that can get us closer to global environmental benchmarks.
For our provincial government that is tasked with the tremendous responsibility of to ensuring citizens are protected and secure during these times of uncertainty, plans to recalibrate hydro prices and the accompanying surcharges continue to be matters they must address.
These are trying times indeed. Where will these stimulus packages be funded from… the taxpayer? Can we adjust global adjustment fees in uncertain times? When does the crest break?
Stay tuned and power on.
Maybe it's time you gave T&T Power Group a call. We can help you generate, distribute and apply electrical solutions to your facility - and we do consulting from coast to coast.