Hydro One: Privatized, but not so good for ratepayers

Rather than pursuing a real privatization, the Liberal government is in fact turning
Hydro One into a perverse public-private partnership where shareholders gain the
upper hand at the expense of ratepayers.

The Ontario government’s $1.66-billion sale of 13.6 per cent of its electricity distribution monopoly, Ontario Hydro, has gathered comments from all sides. Most of the commentary has been negative. An exception was an op-ed on this page from Brady Yauch, of the Consumers Policy Institute. Yauch said he supports the sale, based in part on his view that “the mandate of the (Ontario Energy Board) to protect ratepayers will be made clearer.” He also stated that “the OEB will be better positioned to ensure that Hydro One operates like a private company in a competitive environment.”

Privatizing government-owned power businesses, if it can lessen political influence over the province’s ongoing electricity crisis, has the potential to benefit ratepayers. However, rather than pursuing a real privatization, the Liberal government is in fact turning Hydro One into a perverse public-private partnership where shareholders gain the upper hand at the expense of ratepayers.

Central to the government’s plans to jack up Hydro One’s value are new regulatory rules. Ratepayers lose at every turn.  (more...)

Hydro One: Privatized, but not so good for ratepayers

Further analysis:

Hydro One’s Future

How may an energy user seek rate stability?

Ontario electricity rates going up Nov. 1