Ontario Government Perpetuates Poor Electricity Policy

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Ontario Government Perpetuates Poor Electricity Policy


  • The sharply rising cost of electricity in Ontario for more than a decade has been a major drain on both the province’s economy and its public finances. Electricity prices for hydro consumers have risen by more than 50 percent since 2001, especially after the attempt to shift to renewable energy sources with the Green Energy Act in 2009.
  • While ratepayers have seen prices increase sharply, governments have attempted to cushion the impact by subsidizing the difference between what customers pay and the actual price paid to producers. This has shifted the burden of electricity costs from ratepayers to taxpayers.
  • Both of these trends have continued under the Ford government. Consumers of electricity continue to see prices rise, especially large and medium-sized businesses.
  • Meanwhile, producers continue to receive government subsidies to produce costly power that often exceeds Ontario’s demand.
  • Subsidizing hydro prices continues to add to Ontario’s already large and growing public debt.

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