Toronto: In a speech to the Ontario Energy Association on October 14, Ontario PC Leader Tim Hudak outlined the general terms that are likely to form the basis of the Official Opposition’s positions on energy policy in the months leading up to the Ontario general election in October 2011. Although the party’s full policy platform is likely to be released only a few months before the election, key priorities and concerns that will guide the Party’s thinking are being disseminated now, and stirring up reaction.
Stressing the importance of relying on competition and the abilities of the private sector, Mr. Hudak laid out a number of guiding principles. Pointing to the costs of the current green energy program, Mr. Hudak said, “We cannot continue to pursue green energy policies that unnecessarily drive up the cost for consumers and have punitive results on our broader economy. Let me be clear, renewable energy must be a part of Ontario’s supply mix, but it must be at prices we can afford.” He also targeted “the proliferation of energy bureaucracies” as “consuming too much money and too many resources.”
Clearly concerned about the uncertainty over the future of nuclear power in Ontario, Mr. Hudak promised to be more definitive about nuclear projects if elected: “(G)iven the 10-year lead time for a nuclear facility, we cannot afford to wait any longer and a PC Government will make that decision immediately.”
In terms of the investment climate, one of the most salient aspects of Mr. Hudak’s speech was his assurance about policy stability: He assured listeners that “(W)e will work with the industry to develop a long-term policy framework that grows our economy. And once set, it won’t be directed on a daily basis by Queen’s Park or special interests.” Spending a fair bit of time on an issue that is of wide concern to the power sector, he explained his thinking further: “I believe that government decision makers should work with the sector to set out the policy framework, and then leave it to the sector to implement and execute – in short, get out of the way. But too often, politicians cannot resist the temptation to interfere. Regrettably, that was also true under the Eves Government when we pulled a 180-degree turn. This constant change of direction in government policy means investors no longer find Ontario a safe and stable environment in which to invest in energy projects.” He commented that “a stream of Ministerial Directives means a fractured, splintered approach has replaced long-term planning and stability,” and said, “a PC government will separate politics from energy policy and planning. Our approach will be rooted in accountability to the consumer, the family.”
With respect to regulation, Mr. Hudak charged that “the OEB has been pulled in all directions by this government and no longer has the latitude to properly review electricity contracts that respect consumers.” He promised to “restore the Ontario Energy Board’s ability to act in the best interest of the consumer. ... To ensure that consumers’ interests come first again, and to enhance the OEB’s role in this regard, a PC Government would create a dedicated Consumer Advocate at the OEB to represent the interests of ratepayers and ensure political interests don’t trump a family’s ability to pay.”
The statement that caught headlines and caused a reaction from the current energy minister was Mr. Hudak’s promise to make time of use rates optional. The current government plan is to make them mandatory for anyone with a smart meter, which includes most of the province. “Those who can adapt their behaviour should be given a time of use structure that will reward conservation,” he said. “But for the families who cannot, they should be given the choice at the very least of a flat rate.”
Brad Duguid, the Minister of Energy responded in the media, saying “That kind of an option would be very, very difficult for local distribution companies to administer.” Mr. Hudak noted that other jurisdictions that have gone ahead with Smart Meters do offer consumers the choice on time of use pricing.
In the course of his speech, Mr. Hudak also critiqued the secretive Samsung arrangement and the cancellation of the Oakville gas fired power plant. In conclusion, he said, “We need to create a stable, long term plan that once again makes Ontario an attractive place to invest and a leader in Confederation.”