Ontario cuts electricity prices following COVID-19 shutdowns of businesses and schools

Ontario is cutting residential electricity prices and offering businesses hit by the Omicron shutdown $10,000 grants to help them through the latest restrictions

Thestar.com
Jan. 10, 2022
Rob Ferguson

Keeping more power on because of Omicron?

With more Ontarians working and learning from home, Ontario is once again temporarily cutting electricity prices and providing another round of $10,000 grants for businesses like bars, gyms and theatres that have been shut down by the latest COVID-19 restrictions and classroom closures that took effect this week.

“We know that spending more time at home means using more electricity during the day when prices are higher. That’s why we are moving to off-peak electricity rates 24 hours per day, seven days a week,” Energy Minister Todd Smith said Friday.

The price break lowers hydro costs to 8.2 cents per kilowatt-hour -- less than half the current peak daily rate -- for 21 days starting Jan. 18 and applies automatically to residential, small business and farm customers.

That means consumers are still paying full rates for keeping TVs and computers on all day for the first two weeks of the current restrictions.

The small business relief grants provide a flat $10,000 to offset losses with bars and restaurants reduced to takeout only and other businesses such as theatres, gyms, museums, zoos, galleries, meeting and event spaces, and conference and convention centres shuttered until at least Jan. 26.

Businesses that qualified previously for the Ontario small business support grant program will be pre-screened for eligibility and won’t need to reapply, but newly established or newly eligible businesses will have to apply once an online portal opens “in the coming weeks,” the government said.

Payments won’t begin until February, which opposition parties said is a long delay for businesses hard-hit by several rounds of shutdowns in the last two years.

“There can’t be a long delay,” said Liberal Leader Steven Del Duca.

Dany Kelly of the Canadian Federation of Independent Business said the grants are “good news” but warned they will be “entirely insufficient” if lockdowns go on for longer than three weeks.

“The grant won’t help those affected by deep capacity restrictions, like retail, suppliers to locked down industries, those losing customers because of fear of Omicron or those who are affected by ‘work from home’ orders, like dry cleaners. More comprehensive help is needed,” he added in a statement released on Twitter.

Last month, Ontario auditor general Bonnie Lysyk slammed the government for having lax controls on earlier aid for businesses, finding a rush to get money out the door resulted in almost $1 billion sent to thousands of businesses that weren’t eligible for it or were given more than their losses warranted.

Premier Doug Ford’s government said online applications for the previously announced Ontario business costs rebate program will open Jan. 18 to help businesses with property tax and energy bills.