Ontario’s high power rates could be a deterrent for companies to locate in the province. According to the Association of Major Power Consumers of Ontario, industrial customers within the province pay approximately $85 per megawatt hour, which is more than double in comparison to rates in Manitoba, Quebec and rates in Michigan, USA. This has been a major concern for existing manufacturers within Ontario as well as mayors of Ontario cities and towns.

According to Sarnia Mayor Mike Bradley: “The No. 1 issue that comes to the top of the list on almost every project that might locate here is the cost of power. Chemical plants, in particular, are heavy users of power so there’s a good payback, but we need the province to make sure we’re competitive with our American friends.”

According to Ontario Hydro, Ontario ranks fourth-highest in energy costs amongst the provinces for 2011, behind only to Saskatchewan, Nova Scotia and Prince Edward Island.  However, there are several initiatives and programs available to companies in Ontario to manage their energy costs and consumption:

  • saveONenergy – retrofit program that provides substantial financial incentives to encourage the replacement of existing equipment with energy efficient equipment and new control systems.
  • Ontario Power Authority (OPA) Conservation Fund – program that provides up to 50% to 100% of eligible project costs to support new and innovative electricity conservation initiatives designed to enable Ontario businesses to reduce their electricity demand.   
  • ecoENERGY Efficiency for Industry – program that provides financial assistance of up to $25,000 to assist companies to achieve energy management standards and to accelerate energy efficient investments in Canada’s industrial sector.
  •  Industrial Electricity Incentive Program – program that assists with the management of electricity demand by encouraging increased industrial production through electricity-based price adjustments for eligible electricity consumption.
  • Industrial Conservation Initiative – incentive for industrial companies to shift their energy consumption to off-peak hours to save on energy costs.

These initiatives and programs can play a vital role in keeping Ontario businesses competitive against national and global competition. Contact NorthBridge Consultants to discuss how to take advantage of the aforementioned energy programs.