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Friday, December 2, 2016

Ontario’s Auditor General Slams the Province’s Pending Cap and Trade Fiasco.

Ontario’s Auditor General Slams the Province’s Pending Cap and Trade Fiasco. (probeinternational).

Ontario’s Auditor General (AG) has once again set her sights on the province’s energy sector – this time slamming the upcoming implementation of the cap and trade market. The policy, which kicks in at the beginning of 2017, will cost Ontarians billions of dollars in additional heating and transportation charges, lead to even higher electricity rate increases than are already expected, send billions of dollars from the Ontario economy to California and Quebec and vastly overstate any environmental benefits.

In short, the AG’s report adds to Consumer Policy Institute’s previous criticism of cap and trade that detailed how the biggest winner from the policy will be Queen’s Park, which will have the power to create and distribute any amount of credits it wishes and use any revenue from the program to fund a suite of pet projects that will have little-to-no environmental benefits.

The AG highlighted that the small number of emissions that will incur in Ontario as a result of cap and trade will come at a major cost for the province’s households and businesses, which are already struggling from the fastest electricity rate increases of anywhere in North America.

Between 2017 and 2020, households and businesses will be forced to buy $8 billion worth of carbon credits that the province intends to auction off each quarter. The annual (direct and indirect) cost to the average household will rise to $285 by 2019 (households that drive more miles will pay more). The impact on rural and northern households, which are already suffering from high energy costs, haven’t been analysed by the province.

Cap and trade will also make electricity price hikes worse for industrial customers, according to the AG. Even though the province will use billions of dollars in proceeds from its carbon credit auctions as a subsidy to lower hydro bills, by 2030, large industrial customers will experience a 7% increase in their electricity rate that is “directly attributable to cap and trade.” This price hike is over and above the increases that the province has already laid out in its Long-Term Energy Plan. Hmmm....Once again the main goal of the Wynne 'Admin' is to collect more tax revenue .  Read the full story here.


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