There is some mixed local reaction to the plan to cut Ontario hydro rates by 25 per cent, announced by Premier Kathleen Wynne Thursday.
Under the Fair Hydro Plan, beginning this summer, all residential hydro customers, many small businesses and farms, people with low incomes and those living in eligible rural communities would benefit from the rate reduction.
The 25 per cent reduction includes the eight per cent rebate introduced in January.
The government has stated it will bring the 25 per cent hydro rate reduction into being by refinancing payments on improvements it has made to the province’s hydro system.
Those improvements, the government said in its announcement Thursday, include $50 billion in generation, transmission and distribution of electricity and elimination of coal in electricity generation.
“This announcement is great news,” said Giordan Zin, PUC supervisor of communications, speaking to SooToday Thursday.
“This is exactly what the Electricity Distributors Association (EDA, a lobby group which PUC is associated with) has been calling for, it’s what we’ve been calling for, we are pleased to see the government take substantial action on this issue.”
“It doesn’t really change the PUC’s operations, but what this does is give the benefit to the consumers who have needed it for some time,” Zin said, adding “anyone who’s paying a Sault PUC rate is already paying some of the lowest delivery charges in the province.”
However, Joe Krmpotich, NDP candidate for the Sault riding in a yet-to-be-called provincial byelection, isn’t as enthused with the Liberal government’s plan.
“The interest costs (involved with refinancing in the Liberal plan) could be over $14 billion over a 30 year period,” Krmpotich said.
Under the Liberal plan, rate increases over the next four years would be held to the rate of inflation for everyone.
“There’s no cap after those four years and the rates will shoot up again,” Krmpotich said.
“They’re claiming they’re going to reduce the residential bills by 25 per cent, but the problem we have is it doesn’t address the costs of privatization of Hydro One and oversupply of electricity,” Krmpotich told SooToday.
“It’s very important to return Hydro One to public ownership and control, ensuring it serves the public interest.”
The NDP has stated it has a plan to cut electricity rates by up to 30 per cent.
Andrea Horwath, Ontario NDP leader, will be in Sault Ste. Marie Friday and in Echo Bay Saturday to meet with mayors of small communities, and it is presumed Horwath will have more details on the NDP’s own plan to cut hydro rates.
Ross Romano, Progressive Conservative candidate for the Sault riding, was not available for comment Thursday, but a news release from the Ontario PC party stated the Liberal Fair Hydro Plan is a “scheme devised to lower electricity bills by burdening Ontarians with $14 billion in new interest payments over 30 years.”
“The Ontario PCs are the only party that will stop the fire sale of Hydro One, prevent more pay hikes to energy executives, and stop signing more expensive wind and solar contracts by repealing the Green Energy Act ,” stated the Tory news release.