BUDGET WATCHDOG: ONTARIO HYDRO PLAN WILL COST MORE THAN WHAT YOU SAVE
May 24, 2017
By Bob Komsic
Ontario’s Financial Accountability Office wants you to follow the bouncing ball.
The budget watchdog says the Wynne Liberals will spend $45-billion over the life of its hydro plan designed to save customers $24-billion on their bills.
In a just released report, the F-A-O says this means a net cost of $21-billion over the approximately 30 years of the plan.
The $45-billion is mostly the cost of funding the 8% rebate that took effect in January, but that assumes balanced budgets the next 30 years.
The F-A-O says should the government have to fund the plan through deficits then the cost could soar to $93-billion.
The office says electricity costs will be lower than they otherwise would have been for the next 10 years but after that, they’ll be higher than they are now.
Legislation to cut bills by 17% on average, on top of the rebate, is before the House and has to pass in the remaining four sitting days if relief is to be delivered under the timeline promised by the Liberals.