Ontario cancels wind and solar contracts as Ford conducts energy review

The soaring price of electricity has become a cornerstone for former Liberal Premier Kathleen Wynne, who has reduced its residential rates averaging 25% by spreading planned increases over 30 years.

Progressive Conservatives say they will achieve 12%. 100 additional savings, although the government has provided little detail on how this will be achieved.

The Liberal plan – on which the Progressive Conservatives will support – will cost $ 21 billion in interest, according to the Ontario Financial Accountability Office. And rates will begin to increase significantly after four years, said Tom Adams, an industry consultant who appeared before regulators and legislative committees.

The cancellation of the 758 solar and wind projects represents a "derisory amount". Adams said.

All projects canceled, except 10, were small scale renewable energy projects, mainly solar energy. And 80% of them belong to schools, farmers, municipalities and First Nations, said John Gorman, president of the Solar Industries Association of Canada.

"This is not a big industry; it's the little guys who will suffer the most, "said Gorman.

Although there is often a surplus of electricity production in the province, the cancellation of the wind power project will force the province to rely more on natural gas power plants than Darlington and Bruce reactors. In southern Ontario, it was decided not to proceed with lengthy renovations, Adams said.

Despite cancellations of renewable energy, it is still unclear how the Ford government will achieve the significant savings it has promised. They said that they would be able to redirect the $ 1 billion dividends and taxes paid by Hydro One to taxpayers in order to reduce their electricity bills. However, this money is currently used for general revenue as well as for the Ontario Electricity Financial Corporation, which finances the long – term debt related to the electricity business in Ontario. energy of the province.

The reorientation to taxpayers will dig a gaping hole or the ability of the Ontario Electricity Corporation to cover long-term debt, Adams said. According to NDP energy critic Peter Tabuns, the Conservatives are taking the wrong approach to save money, but they are tearing down contracts and killing "21st century energy projects".

"People do not want to see our beautiful lakes get dirtier and our air becomes smogier, and they absolutely do not want to pay more to watch that happen," he said. "We are asking Mr. Ford to stop the cancellation of these contracts until we know how bad it will be."

Rickford said the government will pbad legislation so that taxpayers, not electricity customers, will cover all the costs badociated with cancellations.