FOR IMMEDIATE RELEASE: Feb. 14, 2018
SIMCOE – Haldimand-Norfolk MPP Toby Barrett points to the recent Financial Accountability Office(FAO) report on the privatization of Hydro One as more evidence of the government’s bungling of the electricity file.
The province’s financial watchdog released a report on Monday that found it would have been more economical to finance infrastructure projects through debt than selling off Hydro One to raise the money. The FAO found using debt would have saved $1.8 billion instead of selling Hydro One shares.
When Hydro One’s privatization started in November 2015, the province said it planned to use proceeds from the sales to fund transit and infrastructure. The FAO found a positive benefit of $3.8 billion over the past two fiscal years, but it will cost $1.1 billion in fiscal 2018-19 due to one-time charges. Combined with the loss of revenue the province would have received from the operations of Hydro One, it would have been $1.8 billion cheaper to finance the infrastructure through debt.
“Examples of the mismanagement of electricity are driving the huge increases in electricity costs,” Barrett said. “Smart meters, the Green Energy Act, the privatization of Hydro One – this government doesn’t understand basic economics.”
For more information, contact MPP Toby Barrett at 519-418-0446