Industry welcomes extended industrial electricity rate: program saves large industrial companies up to $20m per year in hydro costs.

• Author: Migneault, Jonathan
• Position: MINING

The Ontario government has announced it plans on making the Northern Industrial Electricity Rate (NIER) Program permanent.

Sudbury MPP Glenn Thibeault made the announcement in Sudbury while Northern Development and Mines Minister Michael Gravelle held a press conference on the issue in Thunder Bay on April 17.

"Many of the major industries have been talking to me about the importance of this program," Thibeault said.

Ontario is committing to an ongoing program, beyond March 2016, with continued investment of up to $120 million per year. The government will also undertake a review on the efficiency and effectiveness of the program and options for a sustainable approach.

The Northern Industrial Electricity Rate Program was introduced as a three-year program in 2010, and was extended in 2012, for qualifying Northern industrial customers.

It aims to offset higher energy costs in the North due to climate and distance to markets.

The program allows Northern Ontario's large industrial electricity consumers to receive a rebate of two cents per kilowatt-hour with individual rebates up to $20 million per year, per company.

Currently, there are 16 Northern Ontario industrial companies representing 23 facilities participating in the program. On average, industrial electricity prices may be reduced by up to 25 per cent through the program.

To date, the Northern Industrial Electricity Rate Program has disbursed more than $546 million.

"Industry feedback from the program has been extremely positive within our region. For industries that continue to face high energy costs, the NIER program helps to lower these costs while maintaining global competitiveness and helping to sustain local jobs," said Kapuskasing Mayor Alan Spacek, president of the Federation of Northern Ontario Municipalities, in a press release.

Marc Boissonneault, vice-president of Glencore's Sudbury operations, said the program has...