John Spears
Toronto star
October 8, 2002

A week after saying he is "frustrated and annoyed" over a decision by the Ontario Energy Board, Premier Ernie Eves has launched a wide-ranging review of its mandate, performance and financing.

Board chairman Floyd Laughren said he welcomes the review, and says it will give the board a chance to argue it needs more leeway to recruit – and pay – top-quality staff.

The review will be conducted by Energy Minister John Baird, who said he’ll report to Cabinet within 100 days. The study will encompass the legislation governing the board’s powers, resources, performance measures and retroactive decisions.

"The review of the Ontario Energy Board will be good for consumers and will be good for investment and industry," Baird said yesterday.

"What we want is a watchdog, a cop on the beat to look out for the best interest of consumers."

Retroactive decisions became a sore spot when the board recently approved a rate increase for Union Gas, retroactive to 2000, that will cost an average householder $120.

Eves publicly questioned the decision and hinted he’d launch a review.

In an interview, Laughren said he was aware of Eves’ view of the Union Gas decision. "I don’t think there’s any question but that was part of the trigger," he said. "On the other hand, if that trigger will help us get on with a good review, so be it."

The board’s mandate has expanded to include areas such as drawing up and enforcing consumer protection codes and levying substantial fines, Laughren said.

Carrying out those jobs means the board has to hire more professionals such as lawyers and accountants, he said. But that has been difficult because the board works under civil-service salary limits. The review will give the board a chance to argue that its resources should match its mandate, he said.

Tom Adams, executive director of Energy Probe, said the review is "bad news" because it’s being called in the wake of Eves’ critical comments.

"That kind of atmosphere militates against a careful, considered review of the board’s processes and surrounding issues. This is another step toward politicization of the energy markets."

NDP Leader Howard Hampton said the hastily ordered review is a bid to divert attention from failings of privatized, deregulated hydro.

"It’s a shambles," said Hampton. "This government’s strategy of privatization and deregulation is not working and it’s getting Ontario into trouble . . ."