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Ontario Hydro Bills - Will It Be A Break or Break Even

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Industry Observer with The illusion and the reality

Ontario Hydro Bill

 

Will It Be A  Break

According to an article in the National Post the  Liberal Government in Ontario, in a bid to neutralize attacks by the opposition over increases in the cost of living, are expected to announce steps to lower home hydro bills later this week.

Removal of the Harmonized Sales Tax (HST), which recently added to the increase in the cost of hydro, is apparently one of the options that is being examined.

 

Or Break Even

Unfortunately any reduction may well be offset by the time of use billing process that is currently being phased in across Ontario with over 200,000 Hydro One customers already switched over.

While time of use is being promoted as part of the provincial governments plan to create a culture of conservation many see it as another dig into their pockets.

 

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Comments(7)

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FN LN
Toronto, ON

Hi Barrie - I'm not sure that the Ontario government can actually eliminate or reduce the HST rate on electricity.  I had read somewhere during the HST transition process that the federal government only allows provincial governments to eliminate the provincial portion of HST where a similar PST exemption previously existed in that province.  In Ontario, it would include certain types of books, meals under $4 and a small number of other exemptions.  In BC, it included point of sale reduction for gas purchased at the gas station.

The federal government would also need to agree to amend the Excise Tax Act which is the law that governs the HST.

If they wanted to eliminate the provincial portion of the HST, presumably they would need to have a credit offset equivalent to the provincial portion of the HST on the hydro bill.

It would be a lot easier to simply do a non-HST offset on the hydro bill.

Nov 17, 2010 04:23 PM
Brian Madigan
RE/MAX West Realty Inc., Brokerage (Toronto) - Toronto, ON
LL.B., Broker

Barrie,

The government is becoming rather unpopular raising the rates. So, they are now looking to soften their image somewhat.

Brian

Nov 18, 2010 12:01 AM
Barrie Clulow
The illusion and the reality - Uxbridge, ON

Marc And Brian - what ever they finally end up doing it's all smoke and mirrors for a few moments of basking in the sunshie of public approval ..... once the hoopla dies down and people start getting new hydro bills based on smart meters and time of use billings they will wonder what hit them.

Nov 18, 2010 01:57 PM
Janice Ankrett
Burlington, ON

Barrie, Any break is welcome but I don't feel it will be all that significant. In Hamilton On. on top of all these there will be an extra charge because of shortages of revenue from the water usage. Apparently the conservation efforts put together with a decline in users will mean a rise in costs to those still in the area. Just makes you feel warm all over ;).

Nov 19, 2010 04:28 AM
Barrie Clulow
The illusion and the reality - Uxbridge, ON

Janice - Conservation has it's up sides and it's down sides we are on well and septic so do not feel the down side "Yet"

Nov 19, 2010 04:05 PM
David Pylyp
RE/MAX Realty Specialists Inc., - Toronto, ON

Wait   Wait Wait 

Where will I plug in my Electric Chevy Volt?   I will need a 220 V dedicated line and then a timer so it only draws during off peak hours to satisfy my smart meter.

The next step for the government is to introduce,  graduated consumption levels that set the pricing standards.

Green Hydro is not viable if green cost  is 3X the demon coal has become.

But If they could use clean coal and clean up the image....  then we would have savings....

European countries burn garbage and generate power.    Toronto ships it to Michigan.

Great Post!  So many issues are inter related....  Interesting times

 

Nov 22, 2010 01:57 AM
Barrie Clulow
The illusion and the reality - Uxbridge, ON

David - I hope you don't need refueling during peak hours. Suddenly the cost of greening the planet gets higher

Nov 22, 2010 04:18 PM
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