Power struggle delivers unfair rural hydro costs

Of all the things customers dislike about the high rates for power in rural Ontario, delivery charges are the most irritating.

A number of readers have written to decry the high delivery charges. When they follow recommended conservation tactics, they say, their delivery charges rise and negate most gains they might have made.

In short, they just can’t seem to win for losing.

Hydro One says the charges run about 39 per cent of the total bill. Many readers shared examples of delivery rates that run much higher than that.

Here’s Hydro One’s description of delivery charges:

“A delivery rate is the price you pay to have your electricity delivered to your home. It covers the cost of maintenance, upkeep, and all the little things that go into making sure you have the energy you need, when you need it …

“A portion of the delivery charge is calculated at a fixed amount. The rest of the charges increase or decrease depending on the amount of electricity you use.”

Many readers have complained about the unfair way in which they feel the calculations are made, hence the increased charges even when usage is down.

In addition, there are many examples of delivery charges being charged when no power was used.

The high cost for rural power is a crisis throughout rural Ontario, no matter how often the energy minister and the premier deny that reality.

One reader nailed some questions that have been brought up by a number of folks about the delivery charge portion of the cost crisis.

This reader is “a retired farmer who still resides on the farm and suffers through high delivery charges for hydro.”

He got to the heart of the matter with this. “The majority of solar energy produced is generated in rural Ontario and fed back into the grid. This is the same grid we pay part of the delivery charges to maintain.

“My question, are the urban residents paying their fair share of delivery charges to get this energy to urban centres as they use this energy the same as rural residents?”

Then he pointed out that many wind turbines are in rural southern Ontario because of well-serviced roads and no obstacles to construction other than rural residents who were opposed to their construction

Queen’s Park took care of that in short order, he wrote.

However, the majority of this energy is consumed in urban Ontario and the source is out of sight and out of mind.

“My question for this energy produced by wind turbines: are urban residents paying their fair share of the cost of delivery of this energy to get it to urban centres?”

The reader goes on to explain the gasoline tax is the same for all residents of Ontario with a portion of the money designated for road maintenance.

“I think this is a fair way … I used urban roads to get my produce to market and urban residents use rural roads to sell and deliver services we need to use.

“Hydro One should consider using the same reasoning in delivery charges.”

He concludes that the premier needs to understand that everything she eats comes from a rural area and electricity was used in its production.