Ontario auditor finds hydro consumers pay billions extra for Liberal’s decisions

auditor general lyskAuditor General’s Report 2015 

CTV News, Keith Leslie, Canadian Press
TORONTO — Auditor general Bonnie Lysyk says Ontario electricity customers paid $37 billion for the Liberal government’s decisions to ignore its own planning process for new power projects, and warns that’s just one factor driving up hydro rates.

“We found the electricity planning process had effectively broken down over the past decade,” she said. “Instead of following the legislated process, the Ministry of Energy itself effectively assumed responsibility for electricity planning.”

The ministry issued two policy plans and 93 directives that “did not fully consider the state of the electricity market” and at times went against the advice of the Ontario Power Authority. “Ontario electricity ratepayers have had to pay billions for these decisions,” said Lysyk.

The electricity portion of hydro bills rose 70 per cent between 2006 and 2014, which Lysyk said cost consumers $37 billion dollars in so-called Global Adjustment payments to generators — and will cost ratepayers another $133 billion by 2032.

Energy Minister Bob Chiarelli said the Global Adjustment is needed to encourage more companies to get into energy generation, and doesn’t mean people paid too much for hydro. “The words over paying don’t enter into the equation,” he said. “What it is the true costs of providing generation in the province of Ontario, which is added onto the wholesale price because it is not sufficient to cover off the generators.”

The auditor found hydro customers will also pay a total of $9.2 billion more for wind and solar projects under the Liberals’ 20-year guaranteed-price program for renewable energy than they would have paid under the old program. Read article

1 thought on “Ontario auditor finds hydro consumers pay billions extra for Liberal’s decisions

  1. It will continue to get worse.. Trudeau ( new celebrity ) in Power .. Is holding hands with Wynne..
    And we get to hold the garbage .

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