Ontario Premier Announces Measures to Reduce Hydro Bills

In what may be called trying to clean up the mess she made, Ontario Premier Kathleen Wynne announced yesterday the “Fair Hydro Plan” which is designed to decrease the average residential hydro bill by 25% and cap bill increases for the next four years.

As part of the announcement, Wynne says “Starting this summer, Ontario’s Fair Hydro Plan would provide households with this 25 per cent break. Many small businesses and farms would also benefit from the initiative. People with low incomes and those living in eligible rural communities would receive even greater reductions to their electricity bills.”

All farms are eligible for Rural or Remote Rate Protection (RRRP) program and therefore will benefit, according to the government. Electricity consumers that are eligible for the Regulated Price Plan will ‘benefit from the changes we are making to the Global Adjustment charge.’

If passed, the proposed legislation would mean a typical residential, small business or farm would see a bill reduction of 25%.

Wynne’s government points to two reasons why hydro bills have climbed dramatically in recent years:

  • Past years of under-investment in the electricity system has resulted in the need to invest more than $50 billion in generation, transmission, and distribution assets to ensure the system is clean and reliable
  • The Liberal’s decision to eliminate Ontario’s use of coal for power generation and instead invest in renewable power infrastructure have created additional costs

…more to come.

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