Cancel wind power contracts to get electricity bills down: the Fraser Institute
Wind power revenue is from the Global Adjustment subsidy, not actual power sales. Recent moves by government to cancel new contracts won’t get electricity bills down (but will stop them from going up) — more action needed says the Fraser Institute
October 4, 2018
A new report from the Fraser Institute says that decisive action is needed on Ontario’s wind and solar contracts of the new government under Premier Doug Ford is serious about getting consumers’ electricity bills down.
“Energy poverty” is a new watchword in the province as the Liberal governments’ renewable energy policies, which were not based on any kind of cost-benefit analysis, boosted electricity customers’ power bills sky-high, forcing many families to have to choose to “heat or eat.” The association of food banks noted electricity bills as a critical factor in poverty in its 2016 “Hunger Report.”
Moves by the Ford government to cancel new renewables projects, including three huge wind power projects, may stop future increases but they won’t get current bills down.
“The logical next step for the government would be to use its legislative powers to cancel funding commitments under the FIT contracts. This would reduce the GA by almost 40 percent, resulting in an approximately 24 percent reduction in residential electricity prices.
In addition to cancelling the existing FIT contracts, the Ontario government could take further action to reform various other components of the GA, including reducing payments to the relatively new small-scale hydroelectric plants of Ontario Power Generation (OPG) and cutting funding for unneeded conservations programs. In order to quantify the potential consumer price reductions from such measures it would be necessary to examine detailed GA allocation accounts, which have not been released publicly.”
Read the report from the Fraser Institute here: https://www.fraserinstitute.org/studies/electricity-reform-in-ontario-getting-power-prices-down