Canadian Manufacturers and Exporters Congratulates the Ontario Government for Taking Steps to Reduce Electricity Prices

TORONTO -
Manufacturers welcome the Government of Ontario's decision to defer a portion of Global Adjustment (GA) charges for industrial and commercial electricity consumers that do not participate in the Regulated Price Plan.
"Manufacturers are pleased the government listened to Canadian Manufacturers & Exporters (CME) member recommendations and is taking action to reduce Ontario electricity bills immediately," said Dennis Darby, President & CEO of CME.
"The majority of manufacturers have identified cash flow as their top concern during the crisis, "added Darby. "The GA system would have caused a nearly $2 billion cost surge to Ontario manufacturers this year. This new initiative by the government is on top of the billions in support already provided to help manufacturers weather this unprecedented storm. All these measures are a great start in helping businesses of all sizes stay afloat during the crisis and, keeping Ontarians employed."
"We call on the Ontario government to continue to consider the impact of electricity costs on the manufacturing sector, even after the COVID-19 crisis is resolved," stated Darby. "High prices are putting Ontario manufacturers at a significant competitive disadvantage and, discourages investments." A recent report from London Economics International (LEI) found that when compared to jurisdictions with similar manufacturing industries, Ontario's electricity prices can be up to 75% more expensive.
To provide companies with temporary immediate relief on their electricity bills, the Ontario government is deferring a portion of Global Adjustment (GA) charges for industrial and commercial electricity consumers that do not participate in the Regulated Price Plan (RPP), starting from April 2020. The GA rate for smaller industrial and commercial consumers (i.e., Class B) has been set at $115 per megawatt-hour, which is roughly in line with the March 2020 value. Large industrial and commercial consumers (i.e., Class A) will receive the same percentage reduction in GA charges as Class B consumers.
The Ontario government intends to keep this relief in place through the end of June 2020, subject to necessary extensions and approvals to implement this initiative.
Industrial and commercial electricity consumers will automatically see this relief reflected on their bills. Consumers who have already received their April bill should see an adjustment on a future bill.
The government intends to bring forward subsequent amendments that would, if approved, recover the deferred GA charges (excluding interest) from industrial and commercial electricity consumers over a 12-month period beginning in January 2021.
Related News

Energy experts: US electric grid not designed to withstand the impacts of climate change
NEW YORK - As heat ramps up ahead of what forecasters say will be a hotter than normal summer, electricity experts and officials are warning that states may not have enough power to meet demand in the coming months. And many of the nation's grid operators are also not taking climate change into account in their planning, even as extreme weather becomes more frequent and more severe.
Power operators in the Central US, in their summer readiness report, have already predicted "insufficient firm resources to cover summer peak forecasts." That assessment accounted for historical weather and the latest NOAA outlook that…