Canada: Katherine Wynne releases a new hydro plan

“Electricity rates in Ontario will come down significantly, they’re going to stay down and everyone will benefit,” Ms. Wynne said in a news conference, The Globe and Mail reports said.

After hearing several complaints from across Ontario regarding hydro affordability issues Wynne’s government planned to start an Affordability Fund to protect rural and remote rate with a delivery credit.

The 25 percent hydro cut would not have a direct impact on business owners who were advised to adhere to a rebate program forcing them to shift their hydro consumption to off-peak hours.

Canadian business owners were worried about attracting future investments due to their unaffordability in hydro prices, particularly as U.S. President Donald Trump plans to cut corporate income-tax rates and build protection barriers.

“I think this is going to make us more competitive because we are capturing those businesses [in the conservation program], and I think it puts us in a good position,” Wynne said.

She added for businesses that are investing or expanding in Ontario the priority should be a highly skilled work force rather than electricity costs.

Wynne’s government also plans to add $25-billion in interest costs over 30 years for the immediate relief to the industry owners for existing generation projects. The province also plans to give some relief to ratepayers by shifting $2.5-billion over three years to the general provincial account.

“The accusation that we’re spreading this over more than one generation is absolutely true,”  Wynne told the paper. “That’s the point of what we’re doing – we’re asking a future generation to help pay for an asset that they’re actually going to use.”

(Reporting by Asha Bajaj)