Budget Fallout: Sale of Hydro One concerns Windsor businesses

A plan to sell 60 per cent of Hydro One presented in the 2015 Ontario budget has business owners in the Windsor-Essex area worried about more rate hikes forcing them to pass the costs onto their customers.

High hydro costs is the top concern for business owners in the area, according to a recent poll done by the Windsor-Essex Regional Chamber of Commerce.

"We used to be one of the lowest cost jurisdictions in North America and now we're one of the highest and it's impacting our competitive position," said Matt Marchand president of the chamber.

Hydro rates hurting businesses

Ontario Hydro customers will experience another increase come May 1. Opposition members at Queens Park warn rates may go up again with the provincial plan to sell off 60 per cent of Hydro One.

"The new Hydro One will not set rates for consumers which will remain the job of the independent OntarioEnergy Board," said Finance Minister Charles Sousain thebudget speech.

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Mike Jabbour, the owner of Baker's Bar and Grill, told CBC News his hydro rates have almost doubled since last year and if they go up any more he'll be forced to increase his prices.

"All my customers are regular, it's a neighbourhood restaurant, and most of them retired," said Jabbour. "That's going to affect them...my profit goes down for sure."

He tries to keep costs down by doing a lot of the work himself and shopping for deals, but there's only so much he can do.

"Even downtown I see a lot of restaurants closing down, the expenses are unbelievable," said Jabbour.

Ideas to reduce costs

Marchand said nearby jurisdictions such as Michigan and New York are luring away businesses and corporations with the promise of much lower energy costs.

"One of our key members in our agricultural community moved his operation to Ohio because of lower energy costs," saidMarchand. "That isthe kind of evidence we're finding not just among the agriculture sector, which is our number one or number two sector in Ontario...but it's also on the industry side as well."

The chamber of commerce recently held forums where people came forward with ideas on how to bring down hydro rates, such as buying hydro from Manitoba and Quebec.

Marchand saidthe Ontario chamber will be releasing a solution-based report within the next two weeks which will provide more ideas.