Hefty hydro rates are hurting small businesses and residents in Centretown, and costs are set to climb even higher.
This winter has been fairly typical – cold and dark. But unlike past winters, hydro electricity is more expensive, with rates expected to rise 42 per cent by 2018, according to the Ontario government’s long-term energy plan.
Small businesses are particularly vulnerable to added operating costs, says Lori Mellor, executive director of Preston Street BIA.
"Small business people are usually pretty good about getting upgrades to make sure their hydro usage is minimized," Mellor says. "And still they’re seeing incredible increases in their costs."
The rising cost of hydro affects more than just the utility bill, Mellor says. "If hydro rates go up, then all of the supplies that they need to do their business go up."
The Ottawa Council of BIAs, representing 18 BIAs, wrote to Ontario Energy Minister Bob Chiarelli asking for a freeze on hydro increases. The letter urged the government to "work on the side of Ottawa retailers," citing the value of small businesses for job creation in the economy.
The goal of the letter is to get the Ontario government to examine how higher hydro will affect small businesses before raising rates. "A freeze on proposed increases until they’ve steadied the impact on business. Because I think they just have no idea what they’re doing here," Mellor says.
"Our government has no plans to introduce a moratorium on electricity rate increases," said Mark Smith, the senior media relations co-ordinator for the ministry of energy, in an email. "A moratorium on electricity rates would result in these costs not being recovered, leading to the accumulation of debt."
Businesses are encouraged to take advantage of conservation initiatives and rebates to save energy and money, Smith says.
The time-of-day billing structure is a big challenge for small businesses. "The real issue right now is the time of day, really killing small business owners because that is your peak business hours. So you’re paying the highest hydro rate in the times you absolutely have to be open for business," says Mellor.
High hydro costs aren’t just hurting the bottom line for businesses – increased utility bills are hard on renters too.
Meg McCallum is the manager of the membership and communications department for Centretown Citizens Ottawa Corporation, a non-profit housing corporation that promotes affordable housing in the area.
Many CCOC residents are responsible for their utility bills. Many low-income people live in subsidized housing, but utilities come at full price.
"There’s a whole movement around the idea of energy poverty and the fact that people are struggling so much to pay the rising cost of utility bills," McCallum says.
This leaves a lot of tenants struggling to make ends meet, and sometimes having to decide between paying to keep the lights on or buying groceries for the week. "They aren’t fun choices to have to make," McCallum says.