Ontario Reducing Electricity Costs for Businesses in the North
Province Enhancing Rate Stability, Supporting Jobs and Growth
Ontario is reducing electricity costs by up to 25 per cent for some of the biggest job creators in Northern Ontario, including mining and forestry companies, to boost their competitiveness and help them continue to grow.
The province is providing support for large and industrial businesses through the improved Northern Industrial Electricity Rate (NIER) program, ensuring more stable electricity costs. This support will enable them to better plan for long-term growth and continue to create and sustain good jobs in Northern Ontario.
The updated program will make a positive impact on participating companies by:
- Extending the NIER program participation term from three to five years, ensuring businesses can count on greater rate stability for longer
- Accepting more new companies into the program sooner so that more businesses can benefit from more stable rates
- Connecting the rebate level to current electricity usage more accurately
- Encouraging participants to report on activities they are undertaking to address climate change within their organizations.
Reducing electricity costs for large and industrial businesses and supporting good jobs is part of our plan to create jobs, grow our economy and help people in their everyday lives.
- The NIER program will continue to invest up to $120 million each year to assist Northern Ontario’s largest industrial electricity users reduce their energy costs.
- Participating companies receive a rebate of up to $20 million per year.
- Since the program was launched in 2010, approximately $784 million has been disbursed to participating facilities.
- Currently, there are 19 Northern Ontario industrial companies representing 26 facilities participating in the program.
- Mining site operators, Tahoe Canada in Timmins and St. Andrew Goldfields in Matheson, are the most recent recipients for funding through the improved NIER program.
- NIER rebates will now be based on the three-year average actual electricity consumption between 2013-2016 rather than 2011-12 consumption.
“Our government recognizes the unique challenges that large and industrial businesses face in the North. The NIER program will continue to help Northern Ontario’s large and industrial electricity consumers reduce their energy costs, create and sustain jobs and improve their global competitiveness.”
“These significant developments to the Northern Industrial Electricity Rate Program are part of our government’s ongoing commitment to reduce electricity costs for businesses in the North. Improvements to the program will extend participation periods for businesses, create greater certainty for investment and ensure that industries remain competitive and support jobs in Northern communities.”
“Ontario’s largest mining companies require considerable amounts of energy to operate their facilities. The government’s updates to the Northern Industrial Electricity Rate program will allow more of our members to save significantly on their energy costs, better plan for the future, reinvest in their operations and create jobs.”