ELECTRICITY IN ONTARIO
Draft Policy Prepared November 24, 2002
Released for Public Consultation

Ontario faces at least five problems in connection with the supply of electricity:

  1. At present, there is not enough electricity being generated to meet the needs of consumers when their electricity needs increase. If Ontario’s standard of living and productivity growth is not to be compromised, Ontario needs more electricity.

  2. In many instances, electricity continues to be produced using fuels or equipment that cause harm to our land, our water, our air and our physical health. Ontario needs to decrease the harm and potential harm associated with electricity generation.

  3. Laws (e.g., zoning laws) and a lack of technology investments and procedures at most local utilities, are preventing Ontario residents from harnessing and benefiting from the rich natural sources of energy found in their own yards: light, wind, and ground heat, among others. Ontario needs to eliminate the barriers that would make it feasible and affordable for individuals to generate electricity and offset the costs of the electricity that they consume.

  4. Federal law relating to nuclear disasters let the persons who make costly errors and omissions off the hook and leave the taxpayer to pick up the tab. Given the potentially immense damage that could result from a nuclear disaster, Ontario’s continued reliance on nuclear power generation facilities poses a risk of crippling human, environmental and financial loss.

  5. The Progressive Conservative government of Ernie Eves is re-imposing a cap on the money you pay to retailers and distributors for electricity. Price caps were initially imposed by the NDP in the 1990s. By imposing a price cap of 4.3 cents, the government has divided the cost of electricity into the part shown on ones electricity bill, and the part paid for with the provincial sales tax etc. The result is that those who conserve and use less energy than others are forced, in addition, to pay for some of the electricity consumed by industry, commercial enterprises, and individuals who waste electricity. In other words, the price cap causes those who conserve energy (e.g., the poor) to pay more, not less, for the electricity that they consume.

Freedom Party of Ontario takes the position that these problems will be addressed most effectively by protecting property rights, enforcing and respecting contracts, breaking up unnatural monopolies created by law or regulation, eliminating electricity price controls, removing barriers to a level playing field for competition in the electricity market, and ensuring that persons who supply and consume electricity are personally responsible for the consequences of their actions and omissions.

Specifically, a Freedom Party government will:

  • eliminate the 4.3 cent price cap on electricity so that individuals will pay only for the electricity they consume;

  • transfer the power generation facilities of Ontario Power Generation to a number of new subsidiaries, and sell those subsidiaries so as to increase the number of power generation companies in Ontario so that electricity will be generated more cost efficiently, with savings for the consumer;

  • eliminate all Ontario government marketing, subsidies and tax incentives that favour one form of electricity generation over another so that growth and development of renewable energy will no longer be held back by government intervention in the market;

  • repeal legislation that overrides the common law in respect of nuisance, trespass, and riparian (water) rights to empower individuals to protect themselves from environmental harm;

  • prevent the IMO from shielding itself from liability flowing from harmful acts or omissions;

  • address cases of those in demonstrable financial need by providing those in need with financial assistance untied to the level of consumption, rather than with financial assistance that lowers the perceived and personal cost of electricity.

  • protect consumers from: the adding of a "Systems Benefit Charge" to electricity bills, the imposition of a "Renewable Portfolio Standard", mandated use of power generation in newly constructed buildings, mandated time-of-use rates, and IMO bias in the sourcing and dispatch of power;

  • require non-discriminatory interconnection standards for independent energy producers;

  • remove barriers and restrictions on the use of district energy systems by local distributors;

  • require the OEB, IMO and distributors to develop supportive policies, practices and standards, including Canadian Standards Association (CSA) or Underwriters Laboratories (UL) rated meters, to permit net metering without a kW limit;

  • require all utilities to offer net metering; and

  • eliminate arbitrary prohibitions (e.g., municipal zoning restrictions) to the construction or installation of independent generation facilities.

Taking these steps, Ontario can pave the way for an enriched supply of less expensive electricity, generated in a safe and environmentally friendly way.