Ontario Premier Ernie Eves promised on Monday to enact legislation aimed at rebating and protecting consumers hammered in recent months by soaring electricity bills.
"It is unacceptable that families are being hit with hydro bills they can't afford, and businesses are facing cost increases significantly larger than they can handle," Eves said in a statement. "The problem requires immediate action and we are taking it. From now on, the only time your electricity bill will go up is when you use more power."
The Premier and Energy Minister John Baird unveiled a plan to cut hydro rates for homes and small businesses to 4.3 cents a kilowatt hour and freeze them there effective Dec. 1.
The cap will also apply to consumers who signed fixed-term contracts with wholesale suppliers with the deregulation of the market that took place in May.
All charges endured by consumers above the 4.3-cent price will be rebated retroactively to May 1.The first rebates are expected before the end of the year.
Further details will be released on Wednesday about future power supplies.
"While we are acting to protect consumers, we also need to do whatever it takes to encourage investment in new, clean generation," Baird said in a statement. "There are a number of wind and gas generation projects being developed throughout the province, but more must be done to ensure we have the generating capacity we need."
Since the market opened up May 1, the basic wholesale price for electricity has averaged 5.17 cents a kilowatt-hour, according to the Independent Electricity Market Operator. The price was expected to average only 4.3 cents.
During peak consumption periods on the hottest days of summer, prices ranged as high eight cents.
"It is unacceptable that families are being hit with hydro bills they can't afford, and businesses are facing cost increases significantly larger than they can handle," Eves said in a statement. "The problem requires immediate action and we are taking it. From now on, the only time your electricity bill will go up is when you use more power."
The Premier and Energy Minister John Baird unveiled a plan to cut hydro rates for homes and small businesses to 4.3 cents a kilowatt hour and freeze them there effective Dec. 1.
The cap will also apply to consumers who signed fixed-term contracts with wholesale suppliers with the deregulation of the market that took place in May.
All charges endured by consumers above the 4.3-cent price will be rebated retroactively to May 1.The first rebates are expected before the end of the year.
Further details will be released on Wednesday about future power supplies.
"While we are acting to protect consumers, we also need to do whatever it takes to encourage investment in new, clean generation," Baird said in a statement. "There are a number of wind and gas generation projects being developed throughout the province, but more must be done to ensure we have the generating capacity we need."
Since the market opened up May 1, the basic wholesale price for electricity has averaged 5.17 cents a kilowatt-hour, according to the Independent Electricity Market Operator. The price was expected to average only 4.3 cents.
During peak consumption periods on the hottest days of summer, prices ranged as high eight cents.
