Ontario Provides Stable Electricity Pricing for Industrial and Commercial Companies
TORONTO - The Ontario government is helping large industrial and commercial companies return to full levels of operation without the fear of electricity costs spiking by providing more stable electricity pricing for two years. Effective immediately, companies that participate in the Industrial Conservation Initiative (ICI) will not be required to reduce their electricity usage during peak hours, as their proportion of Global Adjustment (GA) charges for these companies will be frozen.
"Ontario's industrial and commercial electricity consumers continue to experience unprecedented economic challenges during COVID-19," said Greg Rickford, Minister of Energy, Northern Development and Mines. "Today's announcement will allow large industrial employers to focus on getting their operations up and running and employees back to work, instead of adjusting operations in response to peak electricity demand hours."
Due to COVID-19, electricity consumption in Ontario has been below average and the province is forecast to have a reliable supply of electricity to accommodate increased usage. Peak hours generally occur during the summer when the weather is hot and electricity demand from cooling systems is high.
"Today's action will reduce the burden of anticipating and responding to peak hours for more than 1,300 ICI participants with 2,000 primarily industrial facilities in Ontario," said Bill Walker, Associate Minister of Energy. "Now these large employers can focus on getting their operations back up and running at full tilt."
The government previously announced it was providing temporary relief for industrial and commercial electricity consumers that do not participate in the Regulated Price Plan (RPP) by deferring a portion of GA charges for April, May and June 2020.
- ICI provides an incentive for eligible electricity consumers to reduce their consumption during peak hours to reduce their costs.
- New ICI participants for the 2021-22 program year will not be affected; they will be assessed on their electricity consumption during peak hours in 2020-21.