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.
On November 29th, 2017, Ontario held the fourth Cap and Trade Auction of the year. In the fourth auction, Current Allowances were sold at $17.38, which was the floor price set by Ontario, While the Future Allowances sold for $18.89, which was $1.51 over the floor price.
The Government of Ontario has released a statement, through the 2017 Long Term Energy Plan (LTEP), that it will no longer provide funding for Combined Heat and Power (CHP) projects that burn fossil fuel.
The Ontario Ministry of Energy released the 2017 Long-Term Energy Plan (LTEP), titled Delivering Fariness and Choice, on October 26th. The 2017 has a strong focus on providing Ontarians the choice on how they use electricity, promoting conservation first, and a continued push towards renewable and non-GHG emitting sources of generation.
A recent study by the Fraser Institute has found links between Ontario’s rising electricity prices and a drop in manufacturing sector jobs. The study has specifically pointed at Ontario’s high electricity costs as a direct cause behind this decline, placing 64% of the blame on those costs. That 64% represents approximately 75,000 jobs lost since 2008 as a result of the electricity prices.
Ontario's Peaksaver program is coming to an end as a new wave of incentives and rebates is being rolled out by the Ontario Government. The Peaksaver program is ending due to multiple factors such as outdated technology and a successful increase in consumer awareness surrounding smart home tech.
