Ontario is reducing electricity costs by up to 25 per cent for some of the biggest companies in northern Ontario, including mining and forestry companies, to boost their competitiveness and help them continue to grow says a government news release.
It's using the Northern Industrial Electricity Rate (NIER) program to try and stabilize electricity costs.
The updated program will make a positive impact on participating companies by:
- Extending the NIER program participation term from three to five years, ensuring businesses can count on greater rate stability for longer
- Accepting more new companies into the program sooner so that more businesses can benefit from more stable rates
- Connecting the rebate level to current electricity usage more accurately
- Encouraging participants to report on activities they are undertaking to address climate change within their organizations.
"These significant developments to the Northern Industrial Electricity Rate Program are part of our government’s ongoing commitment to reduce electricity costs for businesses in the North," says Glenn Thibeault, Minister of Energy. "Improvements to the program will extend participation periods for businesses, create greater certainty for investment and ensure that industries remain competitive and support jobs in Northern communities."
Not so fast says Nipissing MPP Vic Fedeli.
"It’s unfortunate Ontario, once a prosperous province, now needs to pay businesses in order for them to survive," Fedeli told BayToday. "If it wasn’t for this government’s complete mismanagement of the province’s hydro system, we wouldn’t be in this mess, nor would businesses even need this program.
Participating companies can get up to $120 million each year to reduce their energy costs.
Currently, there are 19 Northern Ontario industrial companies representing 26 facilities participating in the program.
