Premier Kathleen Wynne’s recent announcement that her government will attempt to reduce hydro bills may sound promising, but critics of the scheme warn it’ll cost billions more down the road.
“News flash,” a Globe and Mail editorial said, “extending your mortgage repayment period doesn’t actually lower your mortgage.” In other words, refinancing hydro’s debts only spreads them out over a longer period of time, adding an extra $25 billion in interest costs over 30 years.
The NDP, meanwhile, has proposed its own plan for reducing hydro rates that includes returning Hydro One to public hands. (About 30% of the provincial utility is currently privatized.) “Owning it is a win-win that will deliver lower bills, permanently, and put $7 billion back into the province — money that can go into schools and hospitals,” NDP leader Andrea Horwath wrote in a Toronto Star op-ed piece.