The Daily Press is the city of Timmins broadsheet newspaper.
TIMMINS – It was denied at the time by Xstrata Copper. Yet many in the community continue to blame Ontario’s higher energy costs for the company’s decision that ultimately led to the Timmins smelter closing in 2010.
The fact there is a substantial hydro rate increase on horizon doesn’t bode well particularly in communities in Timmins that depend on resource-based industries which are traditionally high-energy users.
“For our industries, mining and forestry, because they are energy intensive, it’s a job killer,” said MPP Gilles Bisson (NDP – Timmins-James Bay), on the prospect of a rise in hydro rates. Phil Barton, a small business owner in Timmins and president of the city’s chamber of commerce, came close to echoing that view.
“I personally think one of the reasons we lost the met site was due to high energy costs and it is certainly detrimental to many of the other big users of power,” said Barton. “If they have to raise their costs because of energy, perhaps it makes them less competitive in the global marketplace. And that has a ripple effect throughout our whole region, probably more so than in many other regions.”
Energy Minister Bob Chiarelli announced Wednesday that his government will retire the Debt Retirement Charge on hydro bills starting on Jan. 1, 2016, an annual savings of just under $70.
But at the same time, the government intends to bring an end to the Ontario Clean Energy Benefit, which takes 10% off bills, adding about $180 to the average family’s hydro bill.
Chiarelli also announced a new program funded by ratepayers to help low-income earners in the province with the cost of electricity – another $11 more a year on the average hydro bill.
The bottom line for a typical residential ratepayer is their hydro bill will rise by roughly $10 a month, exclusive of any increases in electricity prices.
Bisson summed up the overall impact by suggesting, “The government made what they thought was a good news announcement … saying they were going to take off in 2016 the debt elimination charge that is on the bill, which works out to about 0.7 cents per kilowatt.
“The problem is they also announced they are taking off the Ontario Clean Energy Credit which is 10% off your bill. So in effect what they announced (Wednesday) was a 9% increase on your bill.
“I fail to see the good news in that.”
Barton said, “As a small business owner, our rates in Ontario are already higher than most of the other provinces. I think it’s detrimental to some of the new business that we want to have move into our region and I think we are already losing business to the high rates.”
Asked what can be done about this, Bisson, the local MPP replied, “You’re going to be hearing the budget coming down next Thursday and you’re going to be hearing from us (NDP) some point after that about what we think should have happened, if they don’t do it in the budget.”
For the original version of this article, click here: http://www.timminspress.com/2014/04/24/fears-looming-hydro-hike-will-hurt-industry