Ontario Hydro consumers getting “screwed” by Liberal Government!

Posted: March 15, 2013 in Uncategorized

There is no polite way of saying this!

Open your Hydro Bill on any given month and ponder what all the charges are and why your paying so “GD much” for what your trying to conserve!

Has your “usage” decreased YET your paying more? Of course! That’s the major complaint these days with every single “consumer (sucker)” who uses electricity in Ontario.

Have you gone to your local appliance store lately and “upgraded” to a new “efficient and energy conservative electrical appliance”?

Most have. After being bombarded by the continually outrageous advertising claims by the Liberal propaganda machine that we have to “conserve, monitor and take advantage of the modern electrical equipment” available in this “new age of environmental awareness” that we should all be winners and see our Hydro Bills reflect a new “sustainable future”!

Hogwash! Pure and unadulterated BS!

What the Ontario Government has done , vis a vis their bloated electrical agencies like the OEB, the OPA and eventually Hydro One, the agency that does the “dirty work” of gouging your last few hard earned dollars out of your pay cheques, is to screw you out of $$$ to pay for their scandalous mishandling of Government-run parasitic organizations like E Health, ORNGE and lately their vote grabbing gas plant relocations (among many others)!

No new taxes? RIGHT! Not considered a tax, but these electrical use increases hurt just as much as a tax hike because at the end of the day you have less money on your pocket for food, rent, and heat and mortgage payments.

What to do. Where do we turn for some sense of fair play and honest dialogue on a system gone totally insane?

Don’t expect our “newly appointed” Premier Wynne to address this “highway robbery” any time soon!

Are you one of the poor souls who have called Hydro One lately for an explanation why your usage has gone down yet your being billed twice as much for your consumption?

Good luck with that one! The poor guy or gal who you finally get on the other end of your phone gives you such a mind numbing explanation that before they end their “programmed diatribe” your ready to stick your fork into a 220 outlet!

Here’s a fairly simple explanation why these poor souls at Hydro One can’t answer your most basic questions!

Hydro One distributing More Bad News with Your Bill

Those of us throughout the province who still receive their Hydro One bill in paper format may have noticed their recent one contained two inserts. One of them had six (6) “money-saving programs” they said “you can count on” and it had coupons to let you “save instantly”. It also offered free pickup of that old fridge or freezer, a freeprogrammable thermostat and no-cost (kind of free) assistance to manage your electricity use. I think we all know that nothing in life is free but Hydro One and the other local distribution companies (LDC) must somehow feel that we ratepayers are all gullible.The second insert was one headlined “Delivery Rates are Increasing” and this one conveyed the bad news – we would be paying more! This one said the increase was needed to replace and maintain equipment, keep up with customer growth, upgrade their stations and transformers and to “connect renewable generation projects” such as wind, solar, etc. The latter is covered off as necessary and all as “part of the government’s Green Energy Act and Long-Term Energy Plan.” This brochure goes on to tell you how much it will add to your bill making it seem minor but we all know that delivery costs have actually climbed by more then the cost of electricity over the past few years. That free stuff mentioned in the other insert isn’t mentioned as a cost but its not “free” and it does nothing to save the average household anything. Why would you have them haul away your old fridge or freezer if you can’t afford to purchase a new “energy efficient” one! 

Receipt of the bill sent me off to the Ontario Energy Board’s website where they have historical data (Yearbook of Distributors) back to 2005 on all of Ontario’s LDC, including Hydro One Networks. The 2012 information hasn’t been filed yet so any comparison must be to the 2011 numbers which were posted back in the summer of 2012. The following will provide some idea of how those Hydro One delivery rates changed in the 6 years from year-end 2005 to 2011.

Looking back to 2005, Hydro One claimed they had 1,151,989 customers who consumed 24.061 billion kilowatt hours (kWh) meaning the average consumption level was 20,886 kWh (equivalent to 20.9 megawatt hours [MWh]) and at the year end of 2011 their monopoly customer base had increased by 58,606, (+5%) to 1,210,695 and average consumption had fallen to 19.5 MWh for a decrease of 6.8%. So in 2011 Hydro One actually distributed less electricity (please note the calculations do not include line losses which we get billed for) so the question becomes how did that affect their revenue stream and their profitability?

Normally a company selling less of a product or service would see a revenue decline and unless they reduced their costs their profits would suffer. That rule works well in the private sector but in the publicly owned and publicly regulated energy sector in Ontario you can kiss that rule of thumb goodbye.

Hydro One increased its distribution revenue by $414 million (49.3%) in that six year period and its after tax profit by $140 million (146.3%). The revenue per kWh that Hydro One received in 2005 was slightly under 3.5 cents per kWh and by 2011 it had climbed to 5.3 cents per kWh; a hefty 49.3 % rise to match their revenue gain. The biggest influence on costs in the LDC is the Operations, Management and Administration expenses and looking at those for Hydro One indicates they grew from $341 million in 2005 to $550 million by 2011, a 62 % jump.

What the two above figures indicate is that if you operate a publicly owned monopoly in Ontario which is publicly regulated you can sell less of your product/service, increase your costs and still increase revenues and profit.

The OEB seems to have a penchant for granting Hydro One whatever they ask for so there is no need for them to manage their costs in line with how a private sector business would operate.

In the six years from 2006 to 2011 Hydro One paid dividends to the province in excess of $1.3 billion as well as PILT (payments in lieu of taxes) of another $1.2 billion.

What the above indicates is that Hydro One has become simply an indirect means of taxing the ratepayers of the province during the Liberal regime and the $2.5 billion paid out in the past 6 years has gone to cover the costs of their three biggest scandals, so far. So e-Health, ORNGE and the gas plant moves have been paid for by those 1.2 million Hydro One customers.

It is not a comforting thought to know that; not only is rural Ontario getting stuck with those industrial wind turbines but they are also paying the freight to pick up the bills for a big chunk of the Liberal scandals.

The madness continues in the energy sector.

Parker Gallant,
March 14, 2013

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Comments
  1. niagra hydro says:

    Ok, The Niagra Hydro dam runs at 30% or so, what the f^$# is the issue here with hydro. We have to pay our brothers south of the border to take our excess hydro. Abundance WTF. This is criminal debt on the part of the liberals failed projects and (the non consulted missisauga gas plant bs wynne signed on that) the carbon tax bs put on companies creates job loss like we don’t have enough of that.

  2. Anonymous says:

    If all of us in ontario stopped paying for every service possible that involves our income this province would go tits up and that’s what needs to happen,then say to the government your not telling us what to do no more

  3. Anonymous says:

    I so am so sick and tired of paying for other assholes mistakes just to AL
    Ow hydro one employees a good cheque on my did damn pocket. Now everyone hear me out STOP PAYING THE BILL AND I MEAN ALL OF ONTARIO WHAT ARE THE GOING TO DO WHEN THE GO BANCRUPT hmmmmm CALL ONUS LMAO DON’T THINK SO NOW ALSO PRETTY SAD WHEN LAWS ARE MADE TOO TELLING YOU WHAT YOU CAN AND CAN’T DO IN YOUR OWN VEHICLE WELL NOW DOES THE GOVERNMENT PAY FOR MY VEHICLE INSURANCE NO SIR SO ALL YOU FOOLS IN ONTARIO LISTEN UP ST BEING A FOLLOWER ST PAYING FOR EVERYTHING AND THEN WATCH WHO’S ASSESSMENT THE GOVERNMENT KISSES THEN WE HAVE TO START VOICING OUR OPINIONS AND I MEAN NOW STOP BEING THE GOVERNMENT’S DOORMAT I’M PISSED MAD ABOUT THIS PROVINCE AND I’M ASHAMED TO SAY I’M A CANADIAN BORN AND RAISED IN ONTARIO SCAMMING BASTARDS HOPE THEY ALL FIND OUT IN GOVERNMENT WHEN THEY SOME DAY CAN’T AFFORD TO LIVE WHEN THEIR HIGH IN HOG PENSIONS GET GOBBLED UP WITH THEIR HIGH ROLLER LIFE STYLES

  4. mark truax says:

    smart meters my ass!!,smart gougers would be more accurate,bunch of thieving cock suckers,piss of fucking shit,

  5. Hugh Hunter says:

    until we ontario consumers band together,and stop being sheep,nothing will change, I for one , can hardly wait til I can afford to go off the grid< maybe if hydro one LOST a million customers it would be enough impact to change things< im no economist or math expert,but when I get bills around 400$ per month,, Ilive in a less than 1500sq ft home, single, use the stove once a week same with dryer, heat with oil, leave minimal lights on etc etc,,yet some of my bills are higher than neighbours with a bigger house , 2 kids and 4or 5 people , and a pool! something is definately wrong,, I am at the point where I believe the hydro company has NO IDEA how much power is used,,and they simply charge what YOU have been used to paying,, and simply adjust the $ a bit every month , further more (i live in rurual Ontario) thses smart meters are another scam,, they pulled the first experimental meters from the ottawa area when first started,, because they were crap,, and re-installed them in rural ontario! (saved THEM money,,and cost us!) im at the point where I can run my emergency back up generator as cheap or cheaper than hydro,, and that should NEVER be the case! again im no electrician , or math wiz,, and I dont mind paying my FAIR share,,I budgeted 140$ per month when I bought the place 18 years ago< never saw a bill less than 170$, a 150$ a month NOW would be heaven (and fair) they wonder why Ontario has little industry and new manufacturing etc? because the companys cant afford it! they go elsewhere,,,in a province which has MORE places, rivers, etc to produce more electricity than anywhere in the world?, not to mention more jobs created by same? im done for now,,, I guess ill just go it alone with my off grid plan, because the ontario people just wanna be sheeps and feed the big hydro machine and its governments! Hugh Hunter, Pointe au Baril , Ontario,(near parry sound) P.S. why couldnt we SHARE delivery costs,, from point of generation to the :village" main station,, then just pay minimal charge each , to deliver from say a mile away or less,,instead of every household paying from point of origin? something to consider……………

  6. Peter says:

    Considering everything there is little doubt the OEB and Hydro One are sleeping together. If they weren’t, the OEB would not, could not, support Hydro One’s increases. How many millions a year do they (Hydro One) need to make? Just like organized crime might do, they are extorting others of their hard earned money. In this case they have the backing of the Ontario Liberals. Hydro One CEO’s are like just like crack dealers. Once they get you hooked, they have you. Come on. Does the OEB and Hydro One think we are a bunch of drug invested burn outs who can’t see through the fancy worded billing BS.

  7. Richard says:

    Fraud run free these days, Identity theft, computer theft and then comes Hydro one!! Why is it if I commit fraud it’s off to jail I go butHydro one thiefs get fired but leave with a pocket full of money to live the good life. I thought the last time we went through this with Ontario Hydro it was never going to happen again but look at that, over and over. Ontario used to be thrieving from production of everything but when energy is too expensive to produce anything, no production or jobs. Why is it ex politician end up as execs in Hydro One when they can’t plug in a heater and last Ben accountability was supposed to be here now, jail time for all of them!!!

  8. john says:

    For months H 1 failed to send an itemized bill. When questioned I was treated rudely. I paid the monthly budget then suddenly in July rec’d a bill for over $800 to reckon the acct. For a 672 sq. ft home that is well insulated, my consumption (electric heat) had jumped to over $4400 for the year. I’ve been cooking with a low consumption convection element yet my bill climbs higher and higher.

  9. Anonymous says:

    everybody should just move out of ontario maybe then the well stop stealing money from families & kids. KIds have to do without because there family have to choose hydro or clothing.food etc.The are worse than most criminals and should be put in jail.

    • Anonymous says:

      Thats what i am doing im selling my house in ontario & moving to quebec everybody i know there pays about 1 quarter of the price for the same amount of hydro.That savings alone pays for half there mortgage.

  10. There is only one way to stop the “hydro madness”. Do not vote for the Liars (Liberals) ever again!!
    If you know anyone in the GTA tell them to “Stop kissing Wynn’s ass” because she and her thieving cohorts shut down the dreaded gas plants. I, for one, am sick to death of being taxed up the “ying-yang” just to pay for what the people of the GTA want or think they are entitled to. We have to get rid of the Liberals and all their supporters and hope like hell that another political party can clean up their mess and stop this hydro and taxing mess!!!

  11. Anonymous says:

    i friggin pay $155 just delivery charge to get it to my house then i have to pay so they can retire early
    then im 10 minutes late making my payment and they slap me with an $820 security deposit
    meanwhile i have paid over $150,000 to them over my lifetime
    what a crock

  12. Gouging and monopolies are illigal .Are these bastards untouchable?Who can afford to eat anymore..The choice is heat or eat…..sad

  13. Ben Had says:

    Most people in Ontario are like sheep being led to the slaughter. Until the citizens of this province, indeed this country, start to demand accountability from our elected officials they will continue to fleece us.

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