Ryan Cureatz and Antonella Artuso
London Free Press
April 13, 2006

Londoners will pay more to turn on their air conditioners this summer.

Rate changes announced yesterday by the Ontario Energy Board will increase electricity bills for the average London Hydro customer by 12.9 per cent.

A family of four using 1,000 kilowatt hours a month will pay $120.78 starting May 1, up from the current $106.98, London Hydro spokesperson Nancy Hutton said.

"It’s not an easy decision for our government, but I’m convinced that it is the right decision for Ontarians," Premier Dalton McGuinty said yesterday.

"We’ve decided, effectively, that we should all pay for the actual cost of producing our electricity. We didn’t do that in the past and the result of that is visible in our monthly hydro bills." He was referring to the debt repayment charge.

The overall effect on a homeowner’s bill varies wildly across the province, depending on what local utilities charge to deliver power.

The $13.80 increase for the average London Hydro customer is made up of a $4.38 distribution rate increase plus a $9.42 increase that affects all Ontario homeowners who buy electricity from a utility.

"We’re one of the lowest distribution rates in the province," Hutton said.

From May to October, homeowners will pay 5.8 cents per kilowatt hour for their first 600 kilowatt hours, and 6.7 cents thereafter.

The threshold increases to 1,000 kilowatt hours during the winter season from November to April.

Conservative Leader John Tory pressed McGuinty to explain how the public can trust a government that promises to freeze electricity rates and then lets them rise by up to 55 per cent in less than three years.

NDP Leader Howard Hampton said people on low or fixed incomes will struggle with the higher rates.

"We’re going to see many more situations where people will have their hydro electricity cut off; people just cannot afford these kinds of increases," he said.

The Liberal government did introduce a program for low-income residents to help offset the higher costs.

An individual making $19,000 a year or less would get a one-time payment of $10 to $60. A family making $33,000 or less would qualify for a one-time payment of $20 to $120 return.

Opposition MPPs said the program won’t do enough for people already paying more than they can afford for hydro.

Energy Probe director Tom Adams warned consumers are just beginning to feel the effect of government policy decisions that will drive prices up even higher.

HOW MUCH?

Based on usage of 1,000 kilowatt hours, monthly electricity bills for the following utilities will increase by: