By Bob Chiarelli, Minister of Energy
Ontario’s electricity system has come a long way in the last decade. We are on our way to rebuilding approximately 80 per cent of our system, including building and upgrading more than 7,500 kilometres of transmission lines. We are also phasing out dirty coal, saving over $4 billion in health and environmental costs.
As we continue building a clean, modern and reliable grid, Local Distribution Companies will continue to be key partners.
Conservation is a critical element of our energy planning, and Ontarians rely on LDCs to help us reach our conservation targets. That’s why we established targets for each LDC and put in place the framework and the tools to help reach them.
LDCs are also a key point of contact to deliver the smart grid technology that will enhance our conservation efforts and benefit consumers.
Ontario’s new government is focused on driving efficiency broadly in the energy sector, and encouraging our partners to find savings. As we consider the future of our entire energy system, we must explore the cost pressures on it. And we must ensure that we are planning for the future.
That is why our government commissioned the Ontario Distribution Sector Review Panel, which delivered its report in December. The Panel engaged in extensive consultation and completed a comprehensive examination of the distribution sector.
One of the Panel’s recommendations focused on merging Ontario’s LDCs into a smaller number of regional distributors. To achieve consolidation, the Panel recommended that the government legislate mandatory consolidation in the sector.
I share the Panel’s goals of finding savings and driving efficiencies. However, Ontario’s new Government will not legislate or force consolidation within the distribution sector. While it is imperative that we find savings within the sector, we will work with our partners to find local solutions to deliver those savings.
I have recently asked all Ontario LDCs to provide the Ministry of Energy with their feedback on changes they would like to see in the distribution sector and the steps we can take to find the savings the Panel recommended. I encourage all stakeholders to contact the Ministry to provide further input on initiatives to create efficiencies, deliver savings to ratepayers and position the sector to meet tomorrow’s challenges.
I look forward to continuing this conversation as we work together to maintain and improve the energy system our homes, businesses, schools and hospitals rely on.