From National Post · Randall Denley · · 50s
Ontario's Hydro Subsidies Unsustainable
Ontario's government faces pressure to end costly hydro bill subsidies as deficits grow.
In brief
Ontario's government faces pressure to end costly hydro bill subsidies as deficits grow. Ontario's government cannot afford to keep subsidizing hydro bills as deficits rise. Originally reported by National Post.
Premier Ford's fiscal update
Premier Doug Ford's government reports higher deficit and delayed budget balance.
Ontario energy rebate cap
Government caps Ontario Energy Rebate at 1,200 kilowatt-hours monthly for residential users.
Subsidy reduction plan
Power-rate subsidy cuts from 23.5 per cent to 15.7 per cent next year.
Subsidy cost impact
Subsidies cost $6.9 billion last year, up from $4.2 billion in 2020.
Political strategy
Government avoids cutting subsidies to prevent accusations of raising bills.
Historical context
Subsidies began in 2017 after 2018 election campaign focused on power costs.
The takeaway
Ontario's government cannot afford to keep subsidizing hydro bills as deficits rise.
