Ontario to Review Electricity Sector
McGuinty Government Takes Steps to Ensure Value for Ratepayers
Ontario is launching a comprehensive review of the province's electricity sector and will explore options to improve efficiencies, including local distribution company (LDC) consolidation.
The 2012 Budget stated that the government will also undertake an independent benchmarking of our electricity agencies to continue to drive efficiencies. This study will get underway immediately.
In addition, the Government will launch an Ontario Distribution Sector Panel that will be led by Murray Elston, and will include David McFadden and Floyd Laughren. Collectively, the panel members are highly experienced in the electricity sector, and are also knowledgeable about regulation and government process.
The panel will consult with municipalities, LDCs, the Electricity Distributors Association and other energy experts, and look at a range of issues including:
- Potential long- and short-term financial savings associated with consolidation
- Benefits for ratepayers
- Long- and short-term operational efficiencies
- Potential risk
The Ontario Distribution Sector Panel will report back to the Minister of Energy within a year.
Earlier this year, the Commission on the Reform of Ontario's Public Services led by economist Don Drummond recommended that Ontario continue to drive efficiencies in all electricity agencies.
- Ontario has 80 LDCs that deliver power to 4.8 million residential, commercial and institutional customers.
- The Commission on the Reform of Ontario recommended that the provincial government finds administrative efficiencies in its electricity sector agencies.
- The province has been working with the electricity sector to reduce costs and improve productivity - and have already saved ratepayers about $1 billion.
“We have a very strong energy system in Ontario and families expect the government to plan responsibly for today and tomorrow. That's why we need to make sure we're constantly working to make the best use of our resources and to keep bills as low as possible. All of our agencies must continue to realize savings and drive efficiencies for ratepayers.”
“I am honoured to lead this panel. Our common goal is to bring forward improvements that will strengthen Ontario's electricity distribution sector to ensure the best value for ratepayers.”
“The Electricity Distributors Association supports the government's move to strengthen Ontario's electricity sector. We look forward to working closely with the government and the panel to share our ideas on how we can continue to provide the best possible value for ratepayers.”