Ontario reducing burden on industrial electricity ratepayers

Government of Ontario press release – Ontario’s government is pursuing burden reduction measures for industrial electricity ratepayers to help businesses compete, and stimulate growth and investment.

Over the next year, Ontario will help industrial electricity ratepayers focus on their businesses instead of their electricity management practices by establishing an energy concierge service to provide businesses with better customer service and easier access to information about electricity pricing and connection processes.

Ontario is also tasking the Independent Electricity System Operator (IESO) to review and report back on its billing, settlement and customer service processes. This includes identifying opportunities to:

  • Improve and simplify industrial electricity bills;
  • Review how the monthly Global Adjustment (GA) charge is estimated and identify potential enhancements; and,
  • Improve peak demand data publication processes and assess the feasibility of using real-time data to determine the factors that allocate GA costs to consumers.

Further, as part of the government’s continued effort to finding efficiencies in the electricity system, Ontario is also directing IESO to review generation contracts to find opportunities for cost savings.

These measures are based on industry feedback received during extensive industrial electricity price consultations held between April and July 2019.

“Our government is focused on finding workable electricity pricing solutions that will provide the greatest benefit to Ontario,” said Greg Rickford, Minister of Energy, Northern Development and Mines. “Reducing the regulatory burden on businesses can free up resources that can then be invested in areas such as training, new equipment and job creation.”

The government is also in the process of developing further changes to industrial electricity pricing policy informed by what was heard during the industrial electricity price consultations.

“It’s important that we get this right the first time,” said Minister Rickford. “That’s why we’re taking a thoughtful approach and listening carefully to what businesses in Ontario have to say.”

Helping industrial ratepayers is part of the government’s balanced and prudent plan to build Ontario together through ensuring our province is open for business and building a more transparent and accountable electricity system.

Quick Facts

  • Ontario is home to approximately 20,000 industrial electricity consumers that represent about 25 per cent of the province’s total electricity demand.
  • In-person consultation sessions were held in nine cities across Ontario between April and July 2019, with representatives from the automotive, forestry, mining, agriculture, steel, manufacturing and chemical sectors.
  • More than 140 written submissions were received through the online industrial electricity price consultation.

Additional Resources