Newly unearthed documents suggest Ontario’s Liberal government could have saved hydro customers $1.5 billion by terminating an agreement with Samsung, but decided against it.
The papers, uncovered by Progressive Conservative Finance Critic Vic Fedeli, relate to the 2009 Samsung green energy agreement that would take $10.5 billion from Ontario hydro bills, and pay it to a Samsung consortium over 20 years. In return, Samsung would deliver green energy and build factories in the province, employing 900 people.
Four years into the deal, however, a confidential document from staff at the Ministry of Energy advised the government it could save hydro customers $5.2 billion by terminating the agreement. This was because the Korean consortium was missing contract targets and deadlines on electricity projects that Ontario didn’t even need anymore.
But instead of calling off the deal, the Liberals renegotiated the contract to save only $3.7 billion –leaving $1.5 billion in hydro savings on the table.
“Even though we don’t need the power, and even though we can get out of this for nothing, (the Liberals) already told the public how important this deal is,” Fedeli told CTV Toronto, suggesting that the government ignored the potential savings “just to save face.” Read article