Parker Gallant summarizes the electricity situation as of July 14th, but things got more complicated with the release of final July global adjustment figures on the 17th.
New splits for global adjustment classes took effect July 1, and for the new 12-month period the “class A” scheme hasn’t worked to shift cost away from large users nearly as well as it has in the past.
Industry can’t handle higher prices, but it’s high time the “stakeholders” turned their attention to actual cost controls – such as Spain’s action on renewable energy contracts – instead of sleight of hand tricks to get preferential treatments for their sector.
Over the past several months there has been a constant din of noise from all business segments in Ontario about the high price of electricity and its effects. Electricity prices have risen as they have absorbed the high costs of 20-year contracts for renewable energy in the form of wind and solar as additions to Ontario’s electricity grid. Ontario currently has a huge surplus which results in as much as 20 per cent of our generation exported at fire sale prices. Couple that with a drop in demand, annual spending of $400 million on conservation messages, smart meters that allow time of use (TOU) pricing and the Hydro One, OPG and other Ministry of Energy employees enjoying wages and benefits that outstrip the private sector means electricity bills for all segments of businesses and households are now a drain on the economy versus an attraction for new business and the…
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