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Ontario pays private firms more than Crown Corporation in secret power contracts

Power costs rise because McGuinty privatized 10 percent more of it since coming to office.

Walkom: We pay more for private power. But it is not clear that we receive extra benefits.November 9, 2011: McGuinty may be on a different path than Harris, but it is a privatization plan for power generation in Ontario nonetheless, writes Thomas Walkom of The Toronto Star. He reveals that most private contracts are secret and that the Liberals have prioritised private development over new public assets.

"Ontario is quietly privatizing its electricity system. Unlike former Tory premier Mike Harris, Dalton McGuinty is not advertising this fact. But slowly and inexorably, his Liberal government is squeezing out public power.

The evidence is in the figures. When McGuinty became premier in 2003, about 72 percent of the province's electricity was produced by Ontario Power Generation (OPG), the Crown Corporation once known as Ontario Hydro.

By 2010, that figure had dropped to 62 percent.

Yet the shift has gone largely unnoticed.

This was not the case when Harris ran Ontario. The Conservative premier was upfront and noisy. He wanted Ontario Hydro split up and privatized..."

For the complete article, please click here.

Posted: November 16, 2011

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