Our Priorities

Ontario currently applies the federal benchmark carbon price through the Emissions Performance Standard (EPS) to the wholesale price of electricity, but this process needs review and reform. The current approach – in which the cost of carbon passes through the Hourly Ontario Energy Price (HOEP) – is contributing to increasing upward pressure on this portion of costs, and that pressure will continue to rise until 2030 if unaddressed.  

Beyond 2030, Ontario industry lacks a roadmap for policy that outlines what the landscape for taxing carbon emissions on power generation looks like.

Notwithstanding the material impact of these increases to industrial consumers in Ontario, the current approach does nothing to meaningfully reduce greenhouse gas (GHG) emissions, modify generator behavior, or generate revenue for the province which could be reinvested in decarbonization initiatives. Industrial consumers require a solution that Ontario can seamlessly implement that is fair and equitable, results in no market distortion, and does not require additional subsidization from the provincial treasury.

Existing programs for industrial electricity pricing help, but a one-size-fits-all approach is challenging in an economy as diverse as Ontario’s and many industries are struggling with the rigidity of existing rate programs.

Jurisdictions across North America offer a suite of rate structures tailored to specific industries and load characteristics, as well as electricity incentives for economic development and industrial retention.

As the landscape for capital attraction becomes more competitive, Ontario’s electricity rate policies need to respond to the different options our neighbours are offering their largest energy users.

Ontario is on the cusp of the largest investment in new electricity infrastructure in a generation, designed to maintain the reliability of the province’s energy system, facilitate growth, and reduce emissions across the economy. The province has recognized through the Comprehensive Electricity Plan (CEP) that the costs of environmental policy should not be entirely borne by electricity ratepayers.

The philosophy must apply to investments in new generation required to maintain Ontario’s grid as among the cleanest in North America while working to make it more cost-competitive among our North American peers. AMPCO supports a responsible plan for cost allocation in the province to meet energy demand in a affordable and sustainable way.