Hampton says high electricity rates are hurting Northwestern Ontario’s economy

Howard Hampton
MPP Kenora/RR

Queen’s Park - Ontario NDP Leader and Kenora-Rainy River MPP Howard Hampton says a recent Manitoba Hydro report confirms that industrial electricity rates in Ontario are the highest in the country and residential electricity rates are second highest in Canada.
Hampton says the recent study by Manitoba Hydro entitled “Utility Rate Comparisons: Survey of Canadian Electricity Bills, Effective May 1, 2005,” illustrates how the McGuinty government’s policy of driving electricity rates through the roof is killing jobs and industries across Northern Ontario.
“Escalating hydro rates and increased privatization of electricity generation are a very real danger to the economy of communities across the North,” Hampton said. “Industries like pulp and paper must compete against mills in Manitoba, Quebec and British Columbia where industrial hydro rates are less than half of what industries pay here.”
A large paper mill in Northern Ontario using 30 million kW/h of electricity would receive a monthly hydro bill of $2, 263,493. If that mill were located in British Columbia the monthly bill would only be $1,076,000 and if that mill were located in Manitoba, the monthly bill would be only $948,000.
In the report industrial rates were based on an average Market Price of Electricity from May 2004 to April 2005 of 5.40 cents per kW/h. However, since May 1, 2005 the average market price for electricity has jumped to 6.49 cents per kW/h.
“The McGuinty government is continuing the same path of hydro deregulation as the former Conservative government and driving up hydro prices for consumers and industries,” Hampton said. “The McGuinty government needs to address the crisis facing the Northern Ontario economy because of their high cost electricity policy.”