EMC's Energy Group is a member-driven initiative designed to ensure manufacturers have the best information possible: To better manage energy costs and consumption, make informed decisions and achieve cost savings through custom strategies, efficiencies and leveraging the significant volume of participating EMC members. Through our Energy team, we are continuously monitoring the energy market and evolution of industry issues, opportunities and changes that may impact your business.
As you have no doubt heard in the news, the Ontario Government has been under tremendous pressure throughout the past year, to rein in the high cost of electricity in the Province. It appears that further changes to Ontario’s electricity market are imminent and could be announced as early as Thursday March 2nd, with the Wynne Government expected to cut electricity bills. These changes would be in addition to the previously announced 8% rebate for residential and small business consumers.
EMC’s Energy Team anticipates these changes will impact the Global Adjustment portion of the utility bill.
Early indications are the impact of the reduction in costs could be as much as 17%, which the government would achieve by amortizing the life of contracted power generation over a longer time frame. This could result in immediate savings in GA costs of more than $1.5 billion per year… and benefit our manufacturers. Another measure likely to be implemented is transferring the cost of the Ontario Electricity Support Program to the tax base instead of the hydro ratepayers picking up the cost.
Details of this plan have not yet been officially released, however our team is monitoring developments closely and will advise further once the Province makes their announcement.
Please feel free to contact myself, Karen Playfoot (firstname.lastname@example.org) or Gillian Pollock-Snow (email@example.com) any time, should you have questions or to discuss any issues in the energy market that are of interest to your organization.