Try as athey may the Liberal’s daily spin and BS statements about how great it is to be drained to the point of poverty when Ontarians receive their monthly Hydro Bills they just quite can’t admit their energy policies are not only corrupted and dysfunctional but the real story is much more damning!
If it isn’t the “Debt Reduction Charge” it’s now the “Global Adjustment” that has taken over the inflated price for electricity ion Ontario.
Why don’t these political culprits just call it what it is………….. “Screw you, citizen of Ontario, for using electricity that we are managing” !
(April 25, 2014) Ontario’s latest plan to tackle higher energy bills misses the point entirely. ENERGY PROBE
Ontario’s Ministry of Energy is doing everything it can to try and tame soaring energy costs – except, of course, ending the lucrative renewable energy contracts that are the main culprit in higher electricity bills for ratepayers.
This week Energy Minister Bob Chiarelli announced that the province would be ending the unpopular Debt Retirement Charge (DRC) currently paid by all ratepayers in the province. The province estimates that getting rid of the DRC will knock about $5.60 a month off the average household electricity bill.
Yet, in the same announcement, the government says it is “working with the Ontario Energy Board” in developing another program to help the province’s low income families deal with higher energy bills. That’s because, while the government will be ending the DRC at the end of 2015, it will also be ending the Ontario Clean Energy Benefit, which offers a 10% discount on all electricity bills in the province.
The Ontario Clean Energy Benefit was put in place in 2010 to “help Ontarians with the costs of turning on more clean power” and reduces the bill for the average household by about $15 per month. When that program ends, ratepayers will be stuck with bills that are, on average, more than $9 higher – as the $5.60 gained from no longer paying the DRC each month is more than offset by the $15 increase as a result of the expiry of the Clean Energy Benefit.
Chiarelli and the Ontario government are missing the point. The market price of power on the province’s electricity market has been falling consistently in recent years – a result of weaker demand in the wake of the last recession, less industrial output and greater conservation. But consumers haven’t benefited from that drop because that falling price of power is being more than offset by the Global Adjustment, which is a charge that appears each month on their electricity bills.
The Global Adjustment is added to the basic price of power that consumers pay and is calculated by the difference between what the province has promised to pay power producers for their output and the market price of that power on the electricity market. In recent years, as the market price of power has fallen, the Global Adjustment has increased in order to make up the difference between that lower price of power and the price promised via energy contracts to power producers – many of them for renewable energy projects, including nuclear power.