Monday, February 7, 2011

Ontario to launch $1 million blitz to explain soaring energy costs

Robert Benzie
Queen’s Park Bureau Chief

OTTAWA—Premier Dalton McGuinty is hitting Ontarians where they live to explain rising energy prices and what’s being done to help.

Queen’s Park is distributing a six-page pamphlet this week to every household in Ontario as part of a public-relations blitz to tout the new 10 per cent discount on electricity.

The Star obtained an advance copy of the leaflet, which is costing about $1 million to mail out.
“What we’re trying to convey is why we’re doing this,” McGuinty said late Saturday after a 40-minute speech to 300 Liberals at the party’s pre-election policy conference here.

“It is a major undertaking, but we’ve come a long way since the days of 2003 and 2004 when it was touch and go with respect to our capacity to meet electricity demand in Ontario,” the premier said.

While generation is more plentiful and less polluting, electricity bills have skyrocketed and are expected to increase an additional 46 per cent over the next five years.

“We’re now in a position where we’ve got a reliable supply and we’re doing it in a really smart way. We’re doing it in a way that creates thousands of new jobs,” said McGuinty, referring to the Green Energy Act that subsidizes clean wind and solar generators with hopes of creating 50,000 new jobs over three years.

“It’s cleaning up our air so I just want to give Ontarians a sense of why we’re doing this and what we’ve been able to achieve together,” he said.

But with an election looming Oct. 6 and Progressive Conservative Leader Tim Hudak and NDP Leader Andrea Horwath appealing to voter concerns on pocketbook issues, McGuinty launched a 10 per cent hydro rate discount as of Jan. 1.

Known as the Clean Energy Benefit, the measure will cost the treasury, already struggling with an $18.7 billion budget deficit, more than $1 billion a year.

“It’s going to convey to Ontarians that we’re sensitive to their household finances and that we’re trying to help,” insisted the premier.

The six-page brochure, entitled “Electricity prices are changing. Find out why,” is ostensibly a non-partisan document that was approved for release by Auditor General Jim McCarter.
Still, it echoes the themes in the PowerPoint presentation McGuinty has been making across the province in recent weeks.

“Like in a lot of places around the world, electricity prices in Ontario are going up. Why? Ontario is building the infrastructure we need to make sure the lights stay on, now and in the future,” the document states.

It goes on to boast how eight coal-fired generation plants have been closed and the last will be mothballed in 2014.

As well, the leaflet heralds how $9 billion in private-sector investment has been committed in the past year for renewable energy projects and that Ontario has more than 700 wind turbines — up from 10 when the Liberals were elected in 2003.

(The controversial $7 billion deal with Samsung accounts for the lion’s share of that, although the South Korean company is not mentioned by name.)

But this shift has come at a price because green energy is heavily subsidized with generators being paid up to 80 cents a kilowatt hour for electricity that costs about 4 cents from nuclear plants.

Hence the 10 per cent discount.

“The average household will see savings of about $150 this year. The credit will be applied directly to your electricity bill for the next five years,” the pamphlet states.

Horwath, for her part, said Sunday that the Liberals’ moves are cold comfort for worried Ontario families.

“I don’t know how they neutralize this (as an election issue),” said the NDP leader, pointing out that the 13 per cent harmonized sales tax on energy bills is walloping consumers.

“Everywhere I go, I am hearing from families about the cost of household bills,” said Horwath, whose party is promising to scrap the 8 per cent provincial portion of the HST from energy costs and raise corporate taxes to foot the tab.

Tory MPP Lisa MacLeod (Nepean-Carleton), whose party has yet to disclose its plans for tax relief, said McGuinty is out of touch with families.

“The reality is that hydro bills and the HST have become a really big burden on the family budget. We’re hearing it every day,” said MacLeod.

“It’s a little too late for them to be giving credits or the like. Right now, families realize they’re in a very dire strait in paying many of their bills and I don’t think the hydro scheme they’ve put in place is at all helping Ontario families.”


  1. Darn right hydro is killing us! And just try being even one day late on paying your skyrocketing bill. Hydro is on the phone with their pre-recorded message demanding payment. A couple of days later you get the letter in the mail saying if you don't pay by Friday that your hydro might be cut off! WTF?????? We already practically live in the dark, heat by wood where possible, cook on the barbecue and hang the frigging laundry out on the line in the dead of winter just to keep our bills at about $300 a month. When I heard that they GAVE AWAY $6 million worth of hydro last month I just about flipped. Why not SELL the stuff and let us, the poor suckers who have to pay the "debt recovery", have a little debt recovery ourselves. Why not use that $6 million from selling the excess hydro towards that debt recovery and allow us some relief? Don't they have anyone with half a brain over there making the decisions? Be afraid. Be very afraid!

    As for the Liberal government, they have completely lost my trust and more importantly, my vote! The HST completely devours what's left of any "disposable" income we used to have. If you don't believe we are taxed to death, read exactly what taxes you are paying next time you are standing in the freezing cold pumping gas. Let's see, there's the 13% HST, 10% Federal tax, and 14.7% sales tax. HUH? I thought HST was both federal and provincial sales taxes combined yet here is the government in all its true greediness, doubling the taxes at the pump. Yessirree, if gas is $1.00 per litre, you are paying a whopping 37.7 cents per litre in TAX! You read that right. If we weren't taxed to death on gas, we'd pay only 62.3 cents per litre. Doesn't make sense when you consider we are an OIL PRODUCING COUNTRY. Get with the program people. After all, other oil producing countries enjoy paying only 10 cents per litre.

  2. I recently had a problem with Hydro one myself. I my bills have increased approximately 20% same time last year. This includes our little 20% discount. My frustration led me to email Dwight Duncan Minister whom I know personally and I received the most insulting email back crediting himself with easing our finacial situation by the meager 10% rebate, forwarding me the Minister of Energies contact information to complain to him...blah blah you get the drift. What an insult. At this point my frustration led me to open my own twitter and facebook account to vent. This is how I found your own great site. I'm so into any help you would like in your endeavour to sue Hydro! Best regards Alanna

  3. The frustration being felt by most Ontario families needs to gain a louder public voice - I will circulate this blog to everyone I know and ask them to do the same. I will also forward the link to every media outlet and demand they put pressure on Premier Dalton McGuinty in light of the upcoming election. What irks me most as regards the Debt Recovery scheme as it appears to me, it is a double dip tax: the monies loaned to Hydro One by the government are in effect OUR tax dollars that we are now obliged to pay to Hydro One to pay back to the government. Secondly, where is the account reporting on this Debt? These monies have been collected from we the users for over a decade - just how big is this Debt and where is the Balance Sheet reporting its status.

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