Hydro rate increases are killing jobs and hurting families. Toronto. "Recent increases in hydro rates in Ontario are hitting struggling industries and consumers at the worst time in our history," says Bob Huget, Vice-President Ontario Region for the Communications, Energy and Paperworkers Union of Canada.

"Ontario workers are facing record job losses and at the same time they will have to pay more for household electricity; and industries are going to find it even tougher to balance the bottom line," says Huget.

As of January 1, 2009, transmission rates for all electricity users in Ontario have increased, and a recent decision by the Ontario Energy Board has allowed an increase in rates for the Ontario Power Generation portion of consumers' bills. This will add around 6% to the cost of electricity.

Ontario's embattled forestry and manufacturing sectors are major electricity consumers and are particularly hard-hit by rate increases. "Abitibi-Bowater in Thunder Bay will lay off 1,100 workers starting February 1, 2009, in part due to high production costs - Hydro rates and rate increases are a big part of those high costs."

"In a recession, the last thing that Ontario's forestry and manufacturing industries need are increased costs for electricity. It's time that Ontario started to use energy policy to address our non-competitive energy costs," says Huget. "We need better regulation of Hydro rates to help residential and industrial consumers survive our current economic crisis."

For more information:
Bob Huget,
CEP Ontario Region Vice-President
613-299-9839