Kevin Werner
Stoney Creek News
April 20, 2006

Most Hamilton residents will only get singed by their local hydro utility after the Ontario Energy Board unveiled last week a series of price shocks across the province.

Households will start paying on May 1, 5.8 cents per-kilowatt-hour, per month up to 600 kilowatts from May to October. Beyond the 600 kilowatt hours, residents will pay 6.7 cents. Customers are now paying five cents per-kilowatt-hour and 5.8 cents per-kilowatt-hour.

The threshold will rise to 1,000 kilowatt hours from November to April.

The threshold rises during the winter months because homes dependent on electric heating have less flexibility in reducing their power consumption.

For non-residential users, the cost will remain at $750 kilowatt-hours per month throughout the year.

The OEB also jacked up the cost of distribution utilities charge for residents who use 1,000 kilowatts per month. Horizon Hamilton, of which the City of Hamilton is its only shareholder, will charge an extra $6.50, but Horizon St. Catharines customers will pay an extra $8.35. Hamilton Utilities Corporation and St. Catharines Hydro own Horizon Utilities Corporation.

Hydro One, the largest provincial electricity provider, will charge its customers $11.70 extra. Hydro One has a number of customers in Ancaster and Glanbrook, meaning a higher electricity bill of, on average, about $191 for the mostly rural customers.

Horizon Hamilton had one of the lowest increases across the province and certainly the lowest in the Golden Horseshoe.

Niagara Falls received a whopping $14.56 increase, while London Hydro will have a $13.80 hike. Grimsby Power’s rate will increase $12.72 and Burlington Power increased by $9.58.

Overall, Ontario residents will pay between three to 15 per cent more in electricity bills this year, depending on the prices utilities charge to deliver power.

The Ontario Energy Board blamed the higher electricity costs on last year’s summer, which was the hottest in 30 years, that forced the Ontario government to buy more expensive electricity; higher than anticipated prices for natural gas; and lower water levels, which reduced the electricity output from hydro plants.

Ontario households paid on average $60 less than the actual cost of supplying electricity. It resulted in a $384-million deficit.

The new prices are also part of a government policy to have consumers pay the actual cost of buying electricity on the open market.

And expect those energy prices to skyrocket, says Tom Adams of Energy Probe. He says if the Liberals carry out their plan to replace Ontario’s coal-fired generating plants by 2009, prices will continue to rise.

Environmental groups said the hikes would help encourage people to reduce their electricity use, but they criticized the Liberals for not doing enough to promote conservation.

Energy Minister Donna Cansfield urged people to close their blinds to keep out the hot sun, replace air conditioners with fans and if it’s neccessary to use air conditioners, turn them up a few degrees.

Edward de Gale, founder and executive director of Share the Warmth, a non-profit organization that assists low-income families from higher energy costs, says people will have to bear the brunt of skyrocketing electricity prices.

He urged the government to create a permanent fund to assist people who are at risk to ever climbing electricity prices.

Anticipating public outcry for the impact higher electricity prices will have on low-income residents, the Liberals introduced legislation last week to provide $100 million in assistance to nearly 1.5 million families hurt most by the rate hikes.

The OEB in November will be authorized for the first time to revise electricity prices again in the same year, which could mean further price shocks to the public.