Skip to content

North may be hit with higher electricity prices (7/02)

Officials in the City of Greater Sudbury have expressed opposition to a proposal that calls for electricity prices to be set based on where people live in the province.

Officials in the City of Greater Sudbury have expressed opposition to a proposal that calls for electricity prices to be set based on where people live in the province.

The government's proposed zone rate system for Ontario's deregulated electricity market would introduce a new system that charges consumers based on where they live. Consumers who reside close to the province's major power plants, mainly in southern Ontario, would receive cheaper electricity.

City officials say this system could ultimately result in higher rates for Northern Ontario and other rural areas of the province, and could hinder economic growth in the North.

Major private energy producers are promoting the system. The proposal is being studied by Ontario's Independent Electricity Market Operator.