ONTARIO—The eight percent savings on Ontario resident’s electricity bills to begin January 1, 2017, as announced in the Throne Speech by Lieutenant Governor Elizabeth Dowdeswell, has been met with cautious optimism.
“It’s a small step, and it’s good news, but there is much more to do on the energy front,” stated Michael Mantha, MPP for Algoma-Manitoulin.
“Whether in Kenora, Sudbury, Belleville, London, or Barrie, your government has listened and has heard your concerns,” said Lieutenant Governor Dowdeswell. “It recognizes that the cost of electricity is now stretching family budgets. It will therefore act on an idea it has heard from many individuals and groups.”
“Your government will introduce legislation that would rebate-directly on consumers residential electricity bills-an amount equal to the provincial portion of the Harmonized Sales Tax, an eight percent savings,” said the Lieutenant Governor, noting that small businesses will also receive the rebate.
“Additionally, in recognition of the unique and special circumstances associated with the electricity cost-of-service for rural ratepayers, the existing rural support program would be significantly enhanced to provide even more on-bill savings for Ontario’s eligible rural customers,” Lt. Gov. Dowdeswell continued. “Eligible rural customers would receive these additional savings, which would result in an on-bill monthly saving of about 20 percent-approximately $45 a month.”
“The province also intends to implement new measures to ensure that Ontario commercial and industrial ratepayers can also benefit from lower electricity costs,” said Lt. Gov. Dowdeswell.
The lieutenant governor also noted Ontario’s previous steps to assist with some of North America’s highest electricity rates, such as the removal of Hydro One’s debt retirement charge and through the launch of the Ontario Electricity Support Program.
“From our perspective as municipalities it is good news,” said Al Spacek, president of the Federation of Northern Ontario Municipalities (FONOM). “FONOM has repeatedly raised the issue of increasing energy costs for Northerners, including residents, small businesses and industry. We are pleased that the government has committed to assisting these groups with their energy costs by introducing legislation that would rebate the province’s share of the Harmonized Sales Tax from residential and small business electricity bills as well as supporting industry by expanding and lowering the threshold of eligibility for the Industrial Convention Initiative (ICI).”
“The province also committed to further reductions for rural residents by significantly enhancing existing rural support programs. While the details are limited, we look forward to further clarification on the actual benefits that rural residents will experience,” said Mr. Spacek. However, “FONOM maintains that the government should also be working towards a long-term solution to stop overall energy costs from rising.”
Tanya Giles of Spring Bay, who accumulated a total of 1,958 signatures on a petition calling for the province to take steps to reduce hydro costs, and not to privatize sell off Hydro One, said the Throne speech announcement, “is a step in the right direction.” However, “there is to be another increase in hydro costs in January with the cap and trade system. With the announcement made (Monday) is that going to mean a decrease in hydro costs?”
“We should be positive about all of this, but one thing I find interesting is that the province took this action after the Liberals lost a by-election in Scarborough,” said Ms. Giles. “They held the seat in Scarborough since 1999 but lost the by-election and now Mr. Cho is in the seat.” She noted as well most of the line loss fees for hydro are in delivery charges.
“And she (Premier Kathleen Wynne) is passing the buck to Glenn Thibeault, (Minister of Energy),” said Ms. Giles, “I’m calling on Mr. Thibeault to put pressure on the Ontario Energy Board (which sets hydro rates).”
Ms. Giles added, “I have a house in Spring Bay that sits empty and I still have to pay $60 a month for hydro-for zero consumption. Someone has to be held accountable for this type of thing.”
“The Throne Speech was the opportunity for this government to step up and take action on the energy crisis,” said Mr. Mantha. “The announcement was a step in the right direction, and it will mean savings of about $40-50 for some people, but it will stop the wrong headed decision by the government to sell Hydro One. You don’t sell one the province’s best revenue making sources.”
Mr. Mantha is also concerned that in the Throne Speech the government “is refusing to deal with cuts in hospital budgets, and there was no mention except for one sentence of the Ring of Fire; it is really, really disappointing, something that First Nations and Ontario as a whole have been waiting for.”
Mr. Mantha pointed out the steps the province is taking in terms of Hydro One is something that he had called for in 2011. “In 2011, after I had been first elected, I put forward a private member’s bill that called for the same action now announced in the Throne Speech and the Liberals called me a reckless rookie. And again in 2013 they turned down the idea. Now six years later this has become a Liberal idea. It’s all about Ontarians who need a break now on hydro costs. We (government) will be debating this until January, but seniors and people on low income, everyone, are challenged with costs now. I think action should be taken immediately.”
There is already another hydro rate increase slated for November, said Mr. Mantha. “It’s frustrating. The premier visited this area this summer, and received the strong message to deal with the energy crisis, reduce hydro rates and stop the sale of Hydro One, and deal with health care issues. She heard this on Manitoulin, Espanola, Elliot Lake and everywhere in Northern Ontario. The announcement is a small step, and something we have been calling on for six years. But there is much more to do on the energy front.”