Ontario hydro cheaper than in many provinces

Independent watchdog says Atlantic Canada and Alberta residents pay more for energy

It may be cold comfort when you get your hydro bill after cranking the air conditioner this summer, but Ontarians’ home energy costs are far from the highest in Canada.

That’s according to the province’s independent budget watchdog, which compared bills across the country.

“Ontario home energy costs are higher than in Quebec, Manitoba, and British Columbia, but lower than in Atlantic Canada and Alberta,” the Financial Accountability Office announced Thursday.

“The share of after-tax income spent by Ontarians on home energy costs is similar to shares in Quebec and Manitoba, significantly less than in Atlantic Canada, but higher than in Alberta and British Columbia,” the FAO said.

Ontarians spent an average of $2,358 on household energy bills in 2014 — compared to $1,894 for Quebecers and $1,927 for Manitobans.

Prince Edward Islanders forked over $3,553 that year — even more than residents of Newfoundland and Labrador at $3,121and Nova Scotians at $2,903.

The FAO pointed out that Ontario home energy costs jumped a total of $295 between 2010 and 2014 — a 14-per-cent increase.

“However, since after-tax incomes also rose in this period, the share of after-tax income spent on home energy rose only slightly from 3 per cent to 3.2 per cent.”

With Premier Kathleen Wynne’s Liberals taking heat for rising electricity prices, Energy Minister Glenn Thibeault welcomed the findings, though he admitted the government has more work to do.

“The Financial Accountability Officer has confirmed that the average family in Ontario spends less money on electricity than in every other province, except British Columbia, and that total home energy costs are in the middle of the pack when compared to other Canadian provinces,” said Thibeault.

“While the report notes that energy prices are increasing across Canada, Ontarians have seen energy costs increase at a pace consistent with other provinces, and at a slower rate than Quebec and most of Atlantic Canada,” he said.

Thibeault noted because Ontario already eliminated coal-fired generation, which is the cheapest and most polluting way to generate power, “we won’t see the kind of increases coaldependent provinces will down the road.” New Democrat MPP Peter Tabuns (Toronto Centre), whose party has been leading the charge for lower energy costs in the province, said it’s important to keep things in perspective.

“Ontarians have seen energy costs increase at a pace consistent with other provinces.” ONTARIO ENERGY MINISTER GLENN THIBEAULT

Tabuns noted Ontario has “access to low-cost fracked natural gas from the United States” for home heating.

“That has a big impact on costs. When you look at the Atlantic provinces, they’re heating with oil that’s pretty pricey,” he said, noting most Ontario households also benefit from warmer weather than their counterparts in much of the rest of the country.

The New Democrat said the report glosses over the fact that Ontarians still face “the highest rates in Canada” for electricity.

Progressive Conservative officials could not be reached for comment, but in a news release Tory leader Patrick Brown said he heard a lot about hydro rates during his summer tour of the north.

“By far and away the biggest issue in the minds of northern Ontarians (is) sky-high electricity rates,” Brown said in a statement Thursday.

“Our province is already home to the highest rates in North America, and further rate increases are expected.

“People are worried about how they’re going to pay their bills every month. Many are already faced with the difficult choice of heating or eating.”