Blackout cost business $823G

County officials say number will likely rise

Simcoe Reformer
Monday, June 05, 2006

Last month’s blackout, which left parts of Norfolk County in the dark for 36 hours, has cost local businesses at least $823,000, says a report from the county.

And that amount is likely to climb higher as responses from a survey by Norfolk’s economic development department continue to come in, the county warned in a press release last night.

Losses include lost business and inventory, additional labour expenses, and being victimized by criminals.

Forty-eight per cent of businesses that responded to the survey said it would take a week or less to recover from the blackout. Ten per cent said it would take more than a month.

About 120 surveys were distributed to Norfolk’s main employers. So far 71 have responded.

The companies employ a total of 1,838 people.

Other findings in the survey are:

• 75 per cent of companies lost revenue as a direct result of the blackout. Cost: $727,835
• 46 per cent experienced additional labour costs. Cost: $57,475
• 21 per cent experienced damage to inventory, equipment or supplies. Cost: $35,600
• three per cent experienced criminal activities. Cost: $2,500
• 42 per cent reported that relationships with customers, clients, or accounts suffered
• 34 per cent reported it would take a day or less to get back to normal while eight per cent estimated it would take a month or less.

The blackout occurred when a car was driven into a transformer station near Caledonia and set on fire. Police continue to investigate. The incident happened after town residents clashed with native protesters who have been occupying a housing development site. Native protesters claim the land belongs to Six Nations.