Ontario to spend $1.6 billion more to stabilize hydro rates, minister says

electricity prices

TORONTO — Ontario will spend $1.6 billion more this fiscal year to stabilize increasing hydro rates for customers across the province.

Finance Minister Rod Phillips says the government will exceed the $4 billion it has previously budgeted to keep prices stable — bringing the total spend to $5.6 billion.

He made the announcement today as Premier Doug Ford’s government provided a quarterly update on its finances.

The provincial government said last March it would continue to subsidize hydro rates and hold any increases to the rate of inflation.

Last fall, rates increased by about 1.8 per cent, or $1.99 for a typical residential customer who uses 700 kilowatt hours per month.

Phillips says the government will pay for the increased subsidies with new revenues thanks to strong job growth and home sales.