19 August 2010 18:16 [Source: ICIS news]
For the province's combined refining-chemical sector, the annual savings could come to an estimated Canadian dollar (C$) 17m/year ($16.5m)/year, David Podruzny, vice president for economics at the Chemistry Industry Association of Canada (CIAC), told ICIS.
“This is a very significant reduction,” he said.
The change affects the calculation of
The global adjustment levy had soared in recent times, Podruzny said. Depending on the month, it sometimes doubled producers’ monthly electricity bills, he said.
Under the new formula, due to come into effect on 1 January, the levy would be based on a customer's consumption during the five peak-demand days of the year, rather than the total volume of electricity used.
The change was designed to encourage companies to reduce their electricity demand during peak times, Podruzny said.
With the change, electricity prices would rise when demand was high and fall when demand was low, he said.
Producers or consumers that raised their demand in peak time would pay more.
Producers running on a batch or shift basis could reduce electricity demand in peak times, which would translate to an even lower global adjustment levy for them.
The change provided businesses with an incentive to manage their electricity use more responsibly, particularly on hot, smoggy days that placed the biggest strain on
It would result in more controllable electricity costs for
Ottawa-based CIAC had previously criticised
High electricity costs were cited in a number of permanent plant shutdowns in
Earlier, the trade group also lauded an important tax reform in Ontario that established a new value-added tax system in the province, comparable with those in the EU and most industrialised countries.
Major chemical firms with production in
In related news,
($1 = C$1.03)
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