Hydro cuts to make 'real difference' to small businesses, premier says

Premier Kathleen Wynne says her government's plan to slash hydro rates by up to 25 per cent this summer will help small businesses.

Wynne was in Guelph Thursday morning speaking to the owners of an independently-owned flower shop and bookstore.

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"This will make a real difference to businesses that are on main street, that are family businesses, that are serving communities," Wynne told CBC News during her stop in The Bookshelf.

The reduction will be "substantial" for small businesses and will "make a huge difference to their bottom line," she said.

"When I've talked about the reductions, I've talked about mom-and-pop shops, so they're family, community businesses that we want to thrive," Wynne said.

Reduced costs means more chance to invest

Barb Minett of The Bookshelf said the reduced rates will help them with green energy projects, like adding solar panels to the roof of the building, which also houses Miijidaa restaurant, a cinema and the eBar.

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"We can invest in more things," she told the premier during a conversation in front of the media.

Ben Minett said the cost of electricity can reach $4,000 a month for the entire building.

Wynne said the cost reduction will come from spreading the cost of paying for green energy projects out over a longer period of time.

"If we had it to do again, we'd probably spread those costs over a longer time to start out with. That would have been the fairer thing to do," she said.

'A good start'

Jason Dendekker and Francine Saliba are a young couple who opened The Bloom Room Floral Company on Queen Street in May 2016.

"Being a florist, we have two coolers that are running 24 hours a day. The space also has to be temperature controlled, so definitely within the summer months, we are running air conditioner. And this is about 2,500 square feet so that does substantially add up," Dendekker said.

"It goes, it averages anywhere from $500 to $700 a month."

When asked if the reductions go far enough to help them, Saliba said the province "had to start somewhere" and Dendekker called it "a great start."

"I think it's going to work well for small business owners and rural property," he said. "Everybody within Ontario is definitely going to see a difference in their hydro bills, and I think that's a good step and a good start."