By: Laura Steiner
The Province of Ontario’s rate reduction on hydro begins July 1, 2017. Energy Minister Glenn Thibeault was at an event in Milton with Halton MPP Indira Naidoo-Harris where he spoke about Ontario’s Fair Hydro Plan.
The legislation was introduced last month that would lower hydro rates by 25%. The measure includes an 8% reduction rate introduced in January. “Ontario’s Fair Hydro Plan will address these concerns by lowering electricity bills for all residential consumers by 25% on average,” Halton MPP Indira Naidoo-Harris said.
Ontario has also assumed responsibility for the Ontario Electricity Support Program (OESP). They’re launching a Rural and Remote Ratepayers program (RRRP), and an affordability fund to enhance the OESP. The cost of the programs is an estimated $2.5 billion over the next 3 years.
The Financial Accountability Officer Stephen LeClair weighed in late last month. According to the FAO the plan will cost Ontarians $45 billion over the next 29 years, and save only $21 billion.
“We’re going to be holding the rate increases for the next four years to the rate of inflation. That’s over the medium term. The long-term is going to be done with our long-term energy plan.” Thibeault stated. The long-term plan will hold estimated costs for the next 20 years.
The Fair Hydro Plan received royal assent June 1, 2017. It comes into force July 1, 2017. Hydro consumers will begin seeing reduced rates on their July bill.