Ontario gives us 25% tariff for electricity exports

Ontario imposed a surcharge of 25% -or about 7 US dollars per MWh on Monday, after being converted into US dollars, for power exports to the USA, from which the province expects an average of USD 208,000 to 278,000 per day.

Ontario could increase its “tariff response fee” or stop electricity exports in the USA depending on the measures of the Trump government, according to the province.

According to Ontario Premier Doug Ford, which was imposed by the Trump administration in Canada in Canada, which was imposed by the Trump administration in Canada, ontario is to introduce fees for its US exports.

“President Trump’s tariffs are a disaster for the US economy. They make life for American families and companies more expensive, ”said Ford in A press release. “Until the threat of tariffs has finally disappeared, Ontario will not return.”

Ontario generators sold around 12 million MWh in the United States in 2023 in the three electrical connections between the province and the USA. a letter Monday sent to Ontarios network operator from the Ontario Minister of Energy and Electrification Stephen Lecce.

As part of Ontarios Plan, the US companies pay the electricity costs of exported electricity, including the 25% surcharge, to the electricity participant, which exported the electricity, the costs for exported electricity. The independent electricity system operator of Ontario will obtain the contract from the market participant.

On March 4, President Trump imposed 25% tariffs for imports from Canada and Mexico plus a fee of 10% for energy imports. Two days later, he delayed the tariff at some imports, but kept the tariffs for energy imports. However, the energy tariff applies to crude oil, natural gas and other products, as from a federal register on March 6, in which electricity is not mentioned.

The tariffs for energy imports will increase the supply costs, disturb the markets and create uncertainty, said New York governor Kathy Hochul, D, and Chuck Schumer, head of the Senate, said in DN.Y. A letter to state energy agencies on Monday to state energy agencies.

“They are not only economically harmful, but also dangerously short -sighted,” said Hochul and Schumer. “Even worse, the guideline is so badly written that it remains unclear whether electricity imports are subject to the tariff so that our network operators and suppliers remain in the floating.”

Among other things, they urged state authorities to consider an entry -level indicator of pension calculations.

ISO-NE, NYISO tariffs plague arsact

In the meantime, the market for ISO New England and the New York Independent System operator supported the plans of the network operators to set up a process for potential tariffs for electricity imports from Canada, as was made on Monday at the Federal Energy Regulatory Commission.

Customs on Canadian imports of electricity would affect the system flows and the power supply mix, market costs and the prices paid by consumers. The ISO-N market monitor said.

“Clarity is important in order to enable market participants and system operators on the wholesale markets, to assess the effects and to include the best available information in the meeting of business decisions and to react to the best available information – and ultimately that the consequences match reliability and affordability for consumers,” said the market monitor.

Strom imports from Canada have made 5% to 14% of the annual power supply of ISO-N in the past five years, according to the market monitor. ISO-NE estimates that a tariff of 10% would cost $ 66 million a year.

Nyiso proposed to collect the import dust with a deduction to the income paid to the importer Market monitor of the GRID operator saidIt is unclear whether import duties are imposed on electricity.

The public citizen asked Ferc In order not to reject the proposals from ISO-NE and NYISO and not to charge the lattice operators in the authority.

The US customs and border protection is responsible for the assessment and collection of services, said the Consumer Watchdog Group. “So far, the CBP has not given any clear and enforceable instructions for setting up a legally operated tariff classification or a collective mechanism for Canadian hydropower imports,” said Public Citizen. “Any attempt to force tasks without removing these defects is procedural errors and incompatible with the Commercial Act.”