Businesses are looking for answers today as to whether they will qualify for that hydro cut announced yesterday by Ontario’s premier. The ministry of Energy says if passed, the proposed legislation would mean a typical residential, small business or farm would see a bill reduction of 25 per cent.
Among those feeling squeezed by skyrocketing rates are big commercial users and farmers.
At every step along the way at DonEvelyn Farms in south end Ottawa, whether it's milking the cows or drying the corn to feed them, there is hydro involved.
The number of cows this farm milks over the last five years hasn't changed significantly. What has changed significantly, though, is how much it costs to milk them.
“It's shocking when you first look at them,” says farmer Vera Mitchell, as she looks over her hydro bills. Mitchell, who helps run DonEvelyn farms with her family, says her hydro bills hover at $90,000 a year; that's a 63% increase in five years.
“When our costs keep going up,” she says, “it's discouraging to see what's going down while others are getting incremental pay increases.”
The Liberal government's announcement to cut hydro costs will benefit homeowners and small businesses like dry cleaners and convenience stores, providing they use less than 250-thousand kilowatt hours a year or their peak demand is below 50 kilowatts.
“But this would exclude businesses such as larger restaurants, welding shops, medium and large office buildings and big box retailers,” explained Natasha Demetriades, with the Ministry of Energy.
Still,businesses and farmers wonder what's in for them as their hydro costs go through the roof.
“It's time this government did something for small business,” says Gino Milito with the Osgoode Ward Business Association, “because we are fundamentally a part of this economy to move it forward and at this time we are not getting what we deserve.”
The MPP for Ottawa-West Nepean, Bob Chiarelli, says these cuts will have a significant impact on people's bottom line.
‘A lot of people are excited about the prospect of having lower electricity rates,” Chiarelli said at a news conference today in Ottawa, shaking off suggestions that these cuts have sparked skepticism, “there's never a decision the provincial government makes that doesn't have some skepticism so the truth will be in how it's implemented and in the bills as they come out.”
Vera Mitchell will wait to see when that happens.
“If you've been a farmer all your life, you don't expect any windfalls,” she says, “they don't happen very often.”