Ontario Introduces Electricity Cost Relief

The Ontario government today introduced the Ontario Clean Energy Benefit (OCEB), which would provide a 10 per cent benefit to help consumers manage rising electricity prices for the next five years.  The OCEB, which would help more than four million residential consumers and more than 400,000 small businesses, farms and other consumers, would take effect on January 1, 2011.

In order to have a clean, modern and reliable electricity system that includes renewables and creates jobs, the government has made significant investments.  While necessary and unavoidable, these investments are increasing electricity costs.  Over the next five years, residential electricity prices are expected to rise by 46 per cent, after which price increases are expected to moderate as Ontario will have largely completed the transition to a cleaner, more reliable system.

Ontario is emerging from the global economic recession.  By continuing its prudent approach to fiscal management, the government is on track for a deficit of $18.7 billion in 2010-11.  This is a $1 billion improvement over the 2010 Budget projection, and is almost 25 per cent lower than the $24.7 billion deficit projected a year ago for 2009-10. 

The government has negotiated the principal terms of a proposed agreement to renew its long-standing business partnership with Teranet, by extending Teranet's exclusive licences to provide electronic land registration and writs services in Ontario for an additional 50 years.  Under this proposed agreement, Teranet's owner, Borealis Infrastructure, would provide the province with an upfront payment of $1 billion, which would be used to reduce the province's debt. 

This debt reduction would decrease Ontario's ongoing borrowing requirements and would save up to $50 million in annual interest costs.  When added to the $1 billion reduction in the deficit, this payment means the government is borrowing $2 billion less than forecasted.  Beginning in 2017, the province would also receive annual royalty payments from Teranet, which are expected to be approximately $50 million in 2017-18 and to grow in future years.

These measures build on the government's Open Ontario plan to create new jobs, boost economic growth and protect the progress Ontario families have made in their schools and hospitals.