Ontario nearly doubles household electricity rebates to cover surging hydro prices

Ontario Doubles Electricity Rebates Amid Rising Hydro Prices

Electricity prices in Ontario surged by nearly 30%, but most residents may not have noticed due to a sharp increase in the Ontario Electricity Rebate. The rebate now covers almost a quarter of consumers' power costs, nearly doubling to absorb the price hike.

Although this move minimizes the impact on residential hydro bills, it comes with a significant cost. Taxpayers are expected to pay an additional $2 billion annually for the increased rebate, adding to the $6.5 billion the province already spends to lower electricity expenses.

This increase in subsidies has become a significant factor in Ontario's financial outlook. Power subsidies now constitute the majority of the province's projected $14.6 billion deficit this year.

“That’s money coming out of the provincial budget, which otherwise would have gone to deficit reduction, schools and hospitals, and instead is going to effectively socialize the cost of these increases in electricity costs,” said Mark Winfield, political science professor at York University, specializing in electricity policy.
“The political cost of making people pay for these increases would be unacceptable,” Winfield added, highlighting that hydro prices were a major issue during Doug Ford’s 2018 election campaign. “So, instead, they hide these costs.”

Ontario’s approach shifts the financial burden of rising electricity prices from consumers to taxpayers, impacting public funds meant for essential services.

Summary: Ontario’s near doubling of electricity rebates to offset a 30% price rise shifts costs to taxpayers, increasing subsidies by $2 billion annually and contributing significantly to the province’s deficit.

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The Star The Star — 2025-11-06

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