TORONTO - Large, industrial power users in Ontario were given a much-hoped for break on electricity pricing Tuesday that the government said would not result in higher rates for consumers and small businesses.

About 200 large companies, including Ford, Imperial Oil, Petro Canada and Vale Inco, will be allowed to shift to time-of-use pricing to lower their electricity costs -- the same pricing plan available to most homeowners, said Energy Minister Brad Duguid.

The power pricing change will help make those large industrial users more competitive, allowing them to reinvest in their businesses and create more jobs, said Duguid.

"It will create energy savings as a result through the conservation that occurs, and ultimately it will save all rate payers in the long run," he said.

"It will reduce the stress on the overall system as consumption shifts off-peak, and that'll reduce the level of investment that we need to make going forward in energy production."

The minister dismissed reports that consumer rates could jump as high as $48 a year because of the change to benefit industrial users as "patently false," and said it would have such a small impact on homeowners as to be effectively neutral.

"It's more likely to be minimal savings, with a small potential for a very, very small, minimal increase," said Duguid. "It's more likely to be minimal savings than any minimal increase."

However, the Opposition said it didn't trust the Liberal government and was convinced consumers would end up with higher bills as a result of the change to help the big industrial power users.

"This is another sneaky, back-room deal by Dalton McGuinty that is going to be taken out of the wallets of average Ontario families," said Progressive Conservative Leader Tim Hudak.

"I just strongly object to the notion that you're giving big business a break on the backs of hard-working consumers, who are already hard hit by the HST and higher hydro bills."

The New Democrats have been pushing for lower industrial electricity rates for years, blaming the loss of 40,000 forestry jobs in northern Ontario on the high cost of power compared with other provinces.

"We certainly have been advocating for a reduced industrial hydro rate, but not at the expense of consumers," said NDP Leader Andrea Horwath.

"I'm skeptical about the government's commitment to giving consumers a break only because of their track record in that regard."

The Association of Major Power Consumers of Ontario has complained for years that energy costs have steadily become less competitive with rates in neighbouring Manitoba and Quebec.

"This is the policy announcement we've been waiting for for a long time," AMPCO spokesman Adam White said Tuesday.

"It's going to help sustain jobs in manufacturing and help put unemployed mill workers and mine workers and line workers in factories back to work, and that's what we want, especially in places like Windsor and the north where we've lost so many jobs."

There have been a number of changes recently that increased electricity costs for Ontario consumers, including the addition of the HST, a $5 monthly charge for smart meters and a new Green Energy fee, which all combined with a hot, muggy summer to drive up bills.

"We wanted to make sure this provision does not negatively impact energy ratepayers," said Duguid.

The higher rates pay for "very significant investments" in the electricity system to create a more stable power grid, he said.

"That investment has brought on 7,000 new megawatts of power, which has helped to stabilize our energy sector and ensure the power is available that Ontarians need," said Duguid.

"That has come with a cost, and that's part of the reason why energy costs are increasing."