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On Thursday the Liberal government officially announced after the plan was leaked to the Toronto Star late Tuesday their plan to cut electricity bills by another 17 per cent for residential customers.  The Liberals dressed up the reduction as a 25 per cent cut for ratepayers, but in reality the government already reduced hydro bills by 8 per cent at the beginning of this year, and will introduce legislation this spring to reduce bills another 17 per cent starting this summer.

Although the Liberals included the provincial HST rebate in their new "Fair Hydro Plan," the $1 billion loss in annual government revenue associated with the tax break was conveniently omitted.

The refinancing of the global adjustment to allow for the incoming 17 per cent reduction will have the consequence of at least another $25 billion loss in interest payments alone over the next 30 years.  On top of this, the government will offload $2.5 billion of the cost to taxpayers in the next three years.

According to Progressive Conservative Ontario Energy Critic Todd Smith the overall cost will be much more than the Liberals' assessment.

"Taxpayers and ratepayers are the same people.  This is the cost of the Liberal mismanagement.  $5.7 billion not just this year but for the next 30 years.  This is a maximum $172 billion cost.  I've got two teenage girls at home, their kids are going to be paying for this," said Smith at the press conference.

Whatever the true cost to Ontarians of this "spreading" of cost down the road to the next generation of ratepayers, this new plan doesn't even address potential reductions for Ontario businesses' electricity costs likely to be announced soon.

Shortly after the electricity bill reduction announcement, the Canadian Vehicle Manufacturer Association released a statement.

"Today's announcement by the Ontario government appears to do nothing to address a climate of investment uncertainty related to what has been our number one request to the Province of Ontario the urgent need to address out of control Class A industrial electricity rates that can be as high as 2 to 3 times higher in Ontario than in competing auto jurisdictions."

Then on Friday, Food and Beverage Ontario released a report also asking the government to give electricity cost reductions to "Ontario's job creators."

The clamouring of business for similar rate reliefs will likely be granted by the Liberals.

Energy Minister Glenn Thibeault suggested the government was looking at reductions for all ratepayers the day before the Fair Hydro Plan announcement.

"What I can confirm is we're working hard on a rate mitigation plan that will benefit all ratepayers, not only Ontario families, but we need to include businesses.  And we are working hard to get that out as soon as possible, but no decisions have been made," said Thibeault after question period.

So Ontario's taxpayers should expect even more costs passed on to them in future reductions for Ontario businesses' hydro bills, costs not factored into this latest refinancing plan that already will burn tens-of-billions in added interest payments.

Written by Graeme C. Gordon

The views, opinions and positions expressed by columnists and contributors are the author’s alone. They do not inherently or expressly reflect the views, opinions and/or positions of our publication.