Hydro ratepayers could see up to a 30% reduction on their energy bills under a new plan crafted by Ontario's New Democrats.
Party leader Andrea Horwath unveiled the 13-page plan at Queen's Park on Monday.
“It’s time for the people of Ontario to pay less for and own more of our hydro,” said Horwath. “Affordable, reliable public power will be the backbone of the electricity system under an NDP government.”
The proposal would see the end of mandatory time-of-use billing, would cap profits for private producers, and see rural residents paying the same as those in urban settings for delivery.
Maintaining the practice meant to shift energy consumption to off-peak hours isn't working, the New Democrats plan to move to a fixed rate of 10.3 cents per kilowatt hour. They said eliminating time-of-use billing would take "significant stress off families and save money for people unable to shift demand to off-peak hours."
Also key to the NDP plan is the buy back of the 30% of shares in Hydro One the Liberal government has sold. The buy back would cost between $3.3-billion and $4.1-billion and would be financed through the province's share of its Hydro One profits in no more than eight years, according to the NDP.
The party would push the federal government to eliminate its portion of the HST on hydro bills, while at the same time scraping the provincial portion permanently. The Liberal government began waiving the 8% provincial portion of the HST on hydro bills on January 1 in the form of a rebate.
The NDP would also establish a panel to renegotiate expensive private power contracts and stop power from being exported for a fraction of the price it costs to generate it.
“Electricity isn’t a luxury. It shouldn’t be priced like one,” said Horwath. “Instead of subsidizing hydro bills by taking money from hospitals and schools, I’ll lower the cost of power. Families will see immediate relief, and permanent change on their hydro bills.”
