Premier Wynne Cutting Hydro Rates by 25 Per Cent

Changes should take place this Spring

Ontario Premier Kathleen Wynne’s Liberal government plans on slashing down Hydro rates by 25 per cent, according to The Toronto Star.

The rate will maintain with inflation over the next four years. The 17 per cent cut to Hydro is topped by Wynne’s 8% harmonized sales tax rebate that came into effect January 1, totaling to 25 per cent.

The move to bring down bubbling Hydro rates came Wednesday during a cabinet meeting, as Wynne and the Liberals aim to improve their depleting approval ratings. Liberals say they will be able to cut costs as they will be “smoothing out” by extending the periods of contracts for electricity generation like natural gas-fired power plants, nuclear reactors and wind turbines.

Thursday Morning, Wynne spoke out on the pending changes:

For too long, governments – my own included – have made mistakes in the way we’ve structured Ontario’s electricity system. That has resulted in rates that are unfairly high. It’s time to fix those mistakes in ways that work for today and for the future.

Extending the normally 20-year contracts to longer periods, the Liberal government says it will save the province about $1.5 Billion annually.

The plan is to bring said changes in as soon as possible. “We’re looking right now at doing some very quick, tangible rebates that people will see in the very, very near future,” said Energy Minister Glenn Thibeault at Tuesday’s announcement.

Once the legislature passes, residents will see an adjustment on the “global adjustment” line of their Hydro bill.

Liberals also revealed they plan to initiate subsidized rates, including bringing down the costly “delivery charge” for rural customers, and 100% discount for First Nations on reserves.

Image courtesy Jennifer Boyer via Flickr