The government says consumer rates won't increase because large, industrial power users in Ontario will be allowed to shift to time-of-use pricing to lower their electricity costs.
Energy Minister Brad Duguid says the pricing change for 42 large electricity users including Ford, Imperial Oil, Petro Canada and Vale Inco will help make them more competitive.
Duguid says the change for industrial users will have such a small impact on homeowners and small businesses as to be effectively neutral.
He says reports that consumer rates could jump as high as $48 dollars a year are patently false, and notes they could even decrease marginally in some cases.
The Association of Major Power Consumers of Ontario has complained that energy costs have steadily become less competitive with rates in neighbouring Manitoba and Quebec.
There have been a number of changes recently that increased electricity costs for consumers, including the addition of the HST, but Duguid says higher rates pay for a more stable power system.
