By: Cheaper utility bills | posted in News & Stories |
Date: August 8th, 2010
Adam White is the head of the Association of Major Power Consumer of Ontario or AMPCO. He is also a lobbyist for big manufacturing, mining and forest products firms.
White says, “What I’ve been telling my clients is, their bills are going to increase…”, power prices are marching inevitably higher in Ontario, and the only salvation for big users is to make do with less.
“The only solution for companies to remain competitive is to really accelerate their investment in becoming more efficient, to use less power. Because if you are going to use the same amount of power here as your competitors in other jurisdictions, then you’re going to be priced out of the market.”
A study conducted for AMPCO by Navigant Consulting in 2006 showed that Canadian industries paid about one-third less for power than U.S. industries thorough the 1990s. The gap narrowed after 2001, and had closed by 2005.
Some of that blamed for the increasing cost is green energy, but White says he is more concern about the increasing cost of the delivering of power through the wires.
“Green energy’s going to play a role, but the item that’s been accelerating escalation the most is the wires side.”
“We look out through 2013, 2014, and the delivered price of electricity is going to increase every year for the next several years,” he says. “And a big chunk of that increase is being driven by distribution and transmission, not green energy.”
The propose electricity rates from Hydro One asked for an increase of 15.7% in 2011 and 9.6% in 2012. There are some new construction projects to building new lines to carry output from refurbished reactors at Bruce Power.
White also point out many of the local hydro utilities is increasing their rates to boost profits for their shareholders. In fact, the Ontario Energy Board (OEB) recently increased the return that local hydro utilities are allowed to earn for their owners.
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