March 24, 2020
In what has become unprecedented times, both the Ontario Government and Federal Government have passed regulations to reduce costs for those who are most affected by the COVID-19 outbreak. From mortgage deferrals to child care benefit increases we’ve seen the leadership come together to release a wide array of subsidies.
The most recent release, Electricity Relief for families and small business, has sparked some questions for those essential companies still running manufacturing.
The short answer is there is there is no relief program in sight for industrial, commercial or manufacturing at this time.
The relief program offers a reduction in the mid-peak and on-peak hours typically associated with household loads. Given many families are now operating ovens, washers, dryers and generally using more electricity during day-time hours, this relief makes a lot of sense for everyone bunkering down at home.
The small business companies that this program would support would still qualify for time of use rates and typically be operations such as public laundromats or other offices deemed essential services at this time.
The most interesting fall out from this isolation period will be the effect on Global Adjustment rates through the summer. With many companies electing to shut down production we have seen a steady decline in the Ontario Demand Curve. Fewer larger electricity users should create higher Global Adjustment rates through the proceeding months.
As always, we will monitor the impact on our client base and provide expert insight into the complicated energy marketplace.
If you have any questions regarding how this might affect your upcoming billing please reach out to email@example.com to further the discussion.