TAXPAYERS FEDERATION SLAMS GOVERNMENT PLAN TO CHANGE HOW GLOBAL ADJUSTMENT IS FINANCED
TORONTO, ON: The Canadian Taxpayers Federation (CTF) is slamming the government’s plan to extend the cost of the global adjustment over 30 years as failing to address the root causes of the province’s electricity crisis.
“The government’s plan to extend the cost of the global adjustment is about politics, not about solving an electricity crisis of their own making,” said CTF Ontario Director, Christine Van Geyn. “Nothing that the government announced today will address the underlying cause of the electricity crisis, and in fact, will have us paying more in the long term.”
The global adjustment is the difference between the market price for electricity, and the rate the government regulated or contracted price for electricity. Last year the global adjustment accounted for 85 per cent of the cost of electricity, and consumers spent $12 billion on it.
“The Premier used the analogy of a mortgage – extending the cost of the global government over a longer term, and she admitted that this means paying more over the longer term. But the problem is the global adjustment pays for equipment that has a natural lifespan. You can extend the cost of the equipment, but not how is she extending the lifespan of the equipment? We will be paying for expensive refurbishments or we will be paying for equipment that has stopped working. It’s nothing like a mortgage, because you can keep living in your house once you’ve paid it off,” continued Van Geyn.
The changes announced also apply only to residential consumers, and will not give any breaks to small or medium sized businesses.
“This break won’t do anything to help small local businesses, and we will continue to see stories of small business owners closing up shop because they can’t afford this government’s failed policies,” continued Van Geyn.
“What the government needs to do if they’re serous about electricity reform is quit pursuing policies that raise household bills. They should scrap the Green Energy Act, cancel rather than suspend all new procurement, they should stop wasting money on conservation programs that drive rates up, and they should reverse the cap and trade tax that the Auditor General has warned will drive electricity bills up by 23 per cent over the next four years.” concluded Van Geyn.
The Canadian Taxpayers Federation has launched a campaign aimed at engaging the public and empowering citizens to take action about high hydro rates and the cap and trade tax on home heating fuels and gasoline. More information is available at www.StopHighEnergyBills.ca.
Christine Van Geyn is Ontario director of the Canadian Taxpayers Federation.