Canada: Ontario hydro rates to be reduced by 25 percent, says Premier Kathleen Wynne

The proposed 25 percent reduction includes 8 percent rebate of the provincial portion of the sales tax that took effect on Jan. 1.

Although the provincial Liberals could not convince Canada’s Prime Minister Justin Trudeau to eliminate the 5 percent federal share of the HST on hydro bills, they said they found other savings.

“We’re taking it to the next level,” Energy Minister Glenn Thibeault told the legislature during Tuesday’s question period.

“We do recognize the system that we built — eliminating coal, rebuilding the grid — that cost billions of dollars. We know that cost actually came at the expense of many families,” the media quoted Thibeault as saying.

Thibeault said, “We’re looking right now at doing some very quick, tangible rebates that people will see in the very, very near future.”

The refinancing of the global adjustment would enable ratepayers and consumers to immediately see a reduction in their bills.

The government also plans to stop the Ontario Electricity Support Program, which gives up to $65 a month to low-income earners as this cost will be covered by the broader tax base.

(Reporting by Asha Bajaj)

Image: KathleenWynne Twitter