There is no question that the price of electricity in Ontario has been putting pressure on businesses of all sizes. According to a report by the Fraser Institute, the high price of electricity in Ontario is due in part to the imbalance of supply and demand.
Unfortunately, as the report points out, electricity costs in Ontario are among the highest in North America. Industries of all types in the province have been hit hard. “Between 2010 and 2016, large industrial users in Toronto and Ottawa experienced cost spikes of 53 percent and 46 percent, respectively, while the average increase in electric costs for the rest of Canada was only 14 percent,” the report notes.
“In 2016, large industrial users paid almost three times more than consumers in Montreal and Calgary and almost twice the prices paid by large consumers in Vancouver,” the report adds. “Soaring electricity costs in Ontario have placed a significant financial burden on the manufacturing sector and hampered its competitiveness.”
This burden of the price of electricity in Ontario has also taken its toll on the province’s economy. “Ontario’s high electricity prices are responsible for approximately 75,000 job losses in the manufacturing sector from 2008 to 2015,” the Fraser Institute found. Many smaller companies have also indicated that the price of electricity in Ontario is one of their highest operating expenses.
Many businesses have attempted to find ways to save on energy costs and companies. In addition to having our company completing an energy assessment for your business and providing customized energy managements solutions, these simple steps can also help mitigate high electricity costs.
Ways to cut the price of electricity in Ontario:
- Have an energy risk management strategy. Active Business Services offers a range of risk management strategies that help companies mitigate energy market fluctuations. These include various block product solutions, as well as our load following product, which is a fixed price solution that provides businesses the ability to secure a set electricity price for a specific term (e.g. monthly or annually).
- Examine your options. There are a variety of rate reducing programs and incentives offered for industrial consumers. Businesses can find out what solutions are available to them by checking the Government of Ontario website or working with a company like Active Business Services.
- Invest in updated equipment and technology. Fitting your office with energy saving appliances and tools is an important way to reduce electricity costs. Research the EnergyStar rating equipment you have and consider updating it.
- Reduce peak demand. In Ontario, this is key to cutting back on the price of electricity. There are several ways you can adjust your company’s usage during high-peak times including staggering work hours or running your heavy equipment during off-peak times.
With the price of electricity in Ontario negatively impacting some business operations, smart enterprises have been searching for ways to reduce their costs. From cutting back on consumption to using energy-wise equipment there are several ways to save on the cost of electricity for Ontario companies.