MANITOULIN—Words like ‘gouging’ have been used by provincial opposition politicians, while local politicians and residents of Manitoulin Island and the area have also raised concerns with skyrocketing rate increases, as well as Hydro One’s purchase of a US gas and electricity utility, Avista, that saddles the company with $6 billion in new debt that puts Ontario ratepayers at risk of further rate increases, the MPP says.
“The report by the Fraser Institute, and others, is basically acknowledging what we have been saying for a long time: that further privatization of Hydro One means higher bills to consumers, which are Ontario taxpayers,” stated Algoma-Manitoulin MPP Michael Mantha.
CBC News reported on July 20 that the price of electricity grew significantly higher in Ontario than anywhere else in Canada over the past decade, according to a study by the Fraser Institute. The report by the Fraser Institute, which used data from Statistics Canada, shows from 2008 to 2016 residential hydro costs in Ontario rose 71 percent, while the average increase across Canada totaled 34 percent.
The study, called “Evaluating Electricity Price Growth in Ontario,” also shows that electricity prices in the province increased at nearly four times the overall rate of inflation from 2008 to 2015.
“What should surprise people out of this is the dramatic extent to which Ontarians are paying so much more for power than their fellow Canadians, and of course their US neighbours as well,” said Kenneth Green, the Fraser Institute’s senior director of natural resource studies, in a statement.
“Compared to other provinces, Ontarians are paying much more for their electricity and the rate’s going up faster than the other goods and services in the economy,” Mr. Green said in an interview with CBC Toronto.
Using data compiled by Hydro-Quebec, the study compares the hydro bill (including taxes) for a typical household using 1,000 kWh per month in selected cities, as of 2016: Montreal, $83.08; Winnipeg, $97.50; Calgary, $109.19; Vancouver, $114.38; Halifax, $166.80; Ottawa, $182.51; Toronto, $201.23.
“Policy changes by the Ontario government have been the leading drivers of increased prices,” the report purports. The report points the blame at the continued generation of an excess supply of power in the province, despite diminishing demand, as well as the Liberal government’s decisions to pay premium prices to spur wind and solar energy development in the province.
Ontario NDP Energy Critic Peter Tabuns issued a statement on the Fraser Institute report. “The report released by the Fraser Institute shows that Ontario families are being gouged, paying the highest prices for hydro in the nation. That report underscores the need to bring hydro back into public hands so we can regain control over skyrocketing bills.” Electricity rates are set by the still public Ontario Energy Board, however.
Mr. Tabuns claims another 20 percent hike to delivery rates is being considered. “On top of that,” he said. “We learned that Hydro One will buy and merge with American utility giant Avista. A move to create a huge multinational utility that means even less control and even more financial risk for Ontarians.”
“The government has been boasting about getting the province out of coal use, and then they buy this American company,” said Mr. Mantha. “Until Hydro One is back in public hands we will continue to see an increase in everyone’s hydro bill.”
CUPE Ontario President Fred Hahn said, “under public control the company’s Hydro One mandate was to deliver reliable and affordable power to Ontarians. Now it’s a private, predatory company focused on profits and building a private multi-national electricity empire.”
“They’re taking on billions in debt that the people of Ontario will have to cover if their gamble doesn’t payoff,” Mr. Hahn said in a release. “This is not good for Ontario and now it’s not good for the people of Oregon, Washington and Alaska.”
Tanya Giles of Spring Bay and ‘Take Back’ Hydro said “it just doesn’t stop. We have the highest rates for hydro in the country and it is growing. And now the Hydro One has purchased Avista and our rates are going to increase even further. Where does it stop?”
