Wednesday, December 16, 2015

Happy New Year: Ontario’s 2016 Power Rate Shell Game

Ontario power rates will increase dramatically in 2016 but tracking the changes will be challenging. The multi-dimensional, inter-temporal shell game of Ontario power rates will kick into overdrive. Here are a few of Official Ontario’s tricks to watch.

Back on November 1, consumers got whacked with a 12.6% year-over-year increase in the commodity portion of their bills. The rapid escalation of Global Adjustment costs in recent months — $1.1 billion for November alone — suggests another great leap forward for the commodity price come next May.

January 1, the Ontario Clean Energy Benefit (OCEB) disappears. The OCEB is a vote buying scheme McGuinty set up to help him over the top in the 2011 election. When it served McGuinty’s interest to justify raising rates, McGuinty’s marketing pitch was all about protecting our grandchildren. When folks started to pick up on the costs of McGuinty’s schemes, he moved to cover up those costs by sticking them to our grandchildren. The OCEB today transfers 10% of the household power bill to future generations by way of the provincial deficit. Eliminating the OCEB will jack up rates by 11% (not 10%).  (more...)


Get off this train.



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