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Page 2 >> By Jesse Berst
Ontario commission suggests sweeping changes A newly released report chaired by economist Don Drummond makes some bold recommendations for the future of electric power in Ontario. If adopted, they could push Ontario's utilities toward a more market-based system.
Drummond chaired a group called the "Commission on the Reform of Ontario's Public Services." As the title implies, it looks at virtually every aspect of government-funded services. In the electricity sector, the commission recommends that Ontario's 80 local distribution utilities consolidate to create economies of scale. It suggests that these new, larger entities might also expand into other lines of business, such as supplying water.
The report also recommends dropping the $1.1 billion Ontario Clean Energy Benefit subsidy and reviewing other subsidies. In addition, it suggests several reforms that would allow electricity pricing to more accurately reflect its true cost. For instance, by making wholesale prices inclusive of transmission congestion charges (thereby charging more to customers located further from generation stations). Or by increasing the difference between off-peak and on-peak prices.
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