Ontario nearly doubles household electricity rebates to cover surging hydro prices

Ontario Increases Household Electricity Rebates Amid Price Surge

The price of electricity in Ontario has risen by nearly 30%, but most residents may not have felt the impact due to a substantial increase in the Ontario Electricity Rebate. This rebate now covers close to a quarter of consumers' power costs.

Financial Impact on Taxpayers

Although the rise in the rebate keeps residential hydro bills mostly stable, it is expected to add about $2 billion annually to taxpayer expenses. This amount is in addition to the $6.5 billion that the province already spends to alleviate electricity costs.

Effect on Provincial Deficit

Power subsidies now constitute the majority of Ontario's projected $14.6 billion provincial deficit for 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, a political science professor specializing in electricity policy at York University.
“The political cost of making people pay for these increases would be unacceptable,” Winfield added, pointing out that hydro prices were a significant issue in Doug Ford’s 2018 election campaign. “So, instead, they hide these costs."

Summary

The expansion of electricity rebates in Ontario shields consumers from price hikes but significantly increases the financial burden on taxpayers and the provincial budget.

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The Star The Star — 2025-11-06

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