Fraser Institute report: Evaluating Electricity Price Growth in Ontario.
On July 20, 2017, the Fraser Institute released a report examining electricity prices in Ontario. It stated that Toronto Hydro customers pay the highest rates in the country, with an average bill of $201 per month.
There’s no denying electricity prices have increased significantly in Ontario over the last several years, and that the rising costs have had a real and lasting impact on customers. But Toronto is not leading the pack in terms of costs.
The average bill for a Toronto Hydro customer is now approximately $109 after tax. This includes the implementation of the Ontario government’s Fair Hydro Plan that took effect July 1, 2017. Prior to this, the cost was $143. The Fraser Institute did not consult Toronto Hydro before releasing this report, but instead relied on outside data that uses estimates in many situations.
The report also compares Toronto to other major cities in Canada. It’s long been known that this is an apples to oranges comparison as Toronto is unique; it powers the country’s economic centre, has the largest population in the country and also relies on nuclear and gas for the majority of power generation. Quebec, meanwhile enjoys a large abundance of cheap hydro-electric power generation, which results in lower bills.
While the misleading findings of this report make for good headlines in the media, the truth is not as simple as has been presented and Toronto Hydro customers should not feel like they’re being victimized by an unfair system. All Ontarians are feeling the effects of changing hydro prices.