Time is money, and it’s time to stop “thinking” about power solutions and start “doing”.
Many individuals have been looking forward to a report issued by the Province of Ontario detailing a plan to tackle the trend of rising electricity prices across the province, specifically within the industrial sectors.
Spanning from April to July of this year (2019), the Province of Ontario traveled to 9 cities speaking with industry leaders about what could be done to help businesses focus on their business lines rather than spend significant amounts of time and resources managing peak demand periods.
The report made it clear that, as companies continue to search for ways to stay competitive day to day, policy makers are planning to talk, discuss and consult in hopes of arriving at a solution. Perhaps this is adequate, but for most business owners - a more detailed answer is needed.
The recent provincial consultation tour pointed to several primary areas of concern shared by industrial businesses regarding their electricity consumption. Unsurprisingly so, the main takeaway was that businesses are feeling the pinch from their electricity prices, and are frustrated by the unpredictability of their bills.
For businesses to avoid astronomically high electricity bills, they are forced to play the Global Adjustment mitigation “game”, as their bills are simply too expensive not to play.
The Industrial Conservation Initiative (ICI) and the Northern Industrial Electricity Rate (NIER) Program are set up to help companies stay competitive, but it is observed that there is still a lot to be achieved here. With some proposals being put forward by industry leaders, these could still manage to be reworked in order to help businesses regardless of where they are located in the province. Another takeaway from these interchanges was that customers wanted more clarification about what they pay, and how their fees are determined.
The overall complexities of electricity bills are becoming increasingly burdensome for most businesses. As a result, the province is proposing more discussions and consultations as legislators try to figure out how to help businesses with their costs, time management and investment opportunities.
As we further speculate the recent report, what initiatives will the province be looking to implement moving forward?
Well, there were three main initiatives that were highlighted. Firstly, the province will be looking to improve and simplify industrial electricity bills. Next, they are going to review how the monthly Global Adjustment charge is estimated while looking for ways to make it work better for businesses. Lastly, they will work to improve how the Independent Electricity System Operator publishes data, with a goal for consumers to be able to use real-time information to make their decisions on whether or not to stay on-line during demand peaks.
But for many within the industry, these conclusions are simply not enough - and seem a little too much like more political pandering, with more talk and discussions. However at this point, there is a progressive need for concrete action.
With a clear focus on what can be done, businesses are ready for action.
There has never been more of a need for energy management strategies to be incorporated into a company’s vision. At T&T Power Group, we have helped companies initiate this change.
In certain cases, consumers have been able to go off-grid and create islanded installations - and regardless of the electricity price or reliability of the utility, industry participants can still carry on doing “business as usual”. The business case for cogeneration or prime power applications will continue to see returns that begin within five years.
From the discussions and conclusions that can be drawn from these recent provincial reports, it would seem that policy makers may still be trying to figure out a solution well after your strategy pays for itself. But imagine if you were able to operate with peace of mind, and again return to focusing on managing your business line — not your electricity consumption.
“Talk is cheap, and action is expensive. Don’t talk about it until you’re able to afford the action”
- Bar Refaeli
As traditionally accurate as the above quote may be, it is obvious that some aspects of it may be more presently pertinent than others. In today’s energy landscape, talk certainly is cheap - and the actions that are needed can seem expensive or even challenging to initiate. However, without appropriate action, the talk will continue… and the same issues will exponentially escalate.
If you’re ready to “talk about action”, our T&T Power Group will be here to help you navigate these issues.