Established in 1980, Northern Ontario Business provides Canadians and international investors with relevant, current and insightful editorial content and business news information about Ontario’s vibrant and resource-rich North.
Dave Robinson is an economist with the Institute for Northern Ontario Research and Development at Laurentian University. drobinson@laurentian.ca
Timmins lost 670 Xstrata jobs because Quebec has lower electricity prices than Ontario. Cliffs is making noises about refining in Manitoba because Manitoba offers cheaper electricity rates. Industries in Manitoba and Quebec pay under three cents per kilowatt hour, plus distribution costs, while in Ontario they pay a spot market rate that can be double that. Should we lower the price of electricity for industry in the North?
The price of electricity is actually a very political topic. Quebec and Manitoba offer low prices to attract businesses. Much of that business comes from Ontario. We call this a ‘beggar-thy-neighbor policy’ because it makes one province richer by making another province poorer.