Ontario Ministry of Energy is Taking More Control Back from The Ontario Energy Board

Ontario Ministry of Energy is Taking More Control Back from The Ontario Energy Board

Ontario's Fair Hydro Plan Act shifts control from independent regulator to the Ministry of Energy.
November 29, 2017

  The Ontario Energy Board is the Province’s independent energy regulator and their role is to "make decisions and ensure that consumers are treated fairly and that the energy sector is reliable and sustainable".  Part of their role was to set electricity rates to ensure that the rates being charged covered the cost of electricity generated.  In the past this pricing was based on a competitive wholesale markets, and is now blended with the increase in provincially sponsored contracts for renewable energy.  This role however is being limited further with the incoming Fair Hydro Plan Act, which gives the Ministry of Energy, and specifically the Minister, the ability to set electricity rates.  This eliminates the independent and unbiased setting of electricity rates, and could potentially lead to politically motivated rates.  It also allows for potentially shifting the costs from one group of consumers onto others, although there is no indication that this will happen. 

 

 

Links:  Ottawa Citizen, OEB 

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