Monday, March 19, 2012

Fraser Forum Connects Ontario's FIT and Ontario's Deficit

The connection of Ontario's feed-in tariff (FIT) procurement policies for electricity generation to the deficit is:  The government introduced the Ontario Clean Energy Benefit (OCEB) to hide the costs of the the procurement policies, and the OCEB will add over $1 billion to the debt each year.

Scrapping the feed-in tari program will result in smaller increases in electricity prices than proceeding with another round of feed-in tari contracts.  The government of Ontario should immediately scrap the Ontario Clean Energy Benefit, thus reducing the 2012/13 deficit by over $1.1 billion. Long term solutions are needed to address Ontario’s escalating electricity prices, such as walking away from the feed-in tariff program.

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