Ontario’s electricity rates were not reduced as promised by Premier Doug Ford, merely shifted from consumers to taxpayers, says a new report from the Fraser Institute.
The challenge is long-term contracts signed with wind and solar producers who are not only granted high prices, but also priority to market into the grid.
And rather than lowering rates, the Fraser Institute says the Global Adjustment increased by 13 percent between June 2018 and 2019.
The Ford government offset those increases with subsidies for residential consumers.
“These taxpayer subsidies keep Ontarians in the dark about the true costs of electricity, and keep policymakers from focusing on real solutions,” said the report.
If electricity costs were really lowered, it “would also help restore Ontario’s competitiveness,” the report said.
