Globe advice to Ontario: you’re in a hole, stop digging!
From the Globe and mail, advice to Ontario: your electricity policy is kneecapping consumers and business.
Ontario’s low-voltage electricity policy
The first rule of political holes: If you get into one, stop digging. When it passed the 2009 Green Energy Act, Ontario’s Liberal government built itself the political equivalent of a giant, supercharged auger. A half-decade later, the government still hasn’t figured out how to turn the machine off. And the hole keeps getting deeper.
The act, a misguided industrial strategy masquerading as an environmental plan, has been driving up electricity prices ever since its passage. On Monday, a government that continues to search for ways out of this fiasco of its own making released its latest long-term energy plan. Electricity prices are expected to continue to climb sharply in the coming years – though less sharply than previously estimated. It’s a promise to keep digging, just more slowly.According to the latest government estimates, Ontario residential electricity rates will rise 9.6 per cent next year, 5.8 per cent in 2015 and 15 per cent in 2016. Ten years from now, the average family will be paying 50 percent more than today. All of that is well above the rate of inflation.
The pain would be even greater if government were not subsidizing residential electricity bills with something known as the Ontario Clean Energy Benefit – which has nothing to do with clean energy, and is not beneficial. It’s a straight, $1-billion-dollar-a-year payment from taxpayers to electricity users – your right pocket is paying your left – financed through deficit spending.
For the full editorial, read here.