Now I’m no mathematician but even if we (unfairly) compare the utter extremes, the difference is 9.9 cents minus 6.5 cents. A total of 3.4 cents per kWh at the most wasteful time of day. The fact is that hydro usage peaks greatly at these peak times and we undeniably SHOULD pay more at these times. It’s what is affectionately referred to as “the law of supply and demand”. A died-in-the-wool free-market capitalist like Hudak should be able to appreciate this!
So is this increase the 150% that he suggests? Well actually no. Under the worst case scenario, it’s an increase of approximately 52%. In order for them to raise your rates by 150%, the cost per kWh peak would have to be 16.25 cents!
Now let’s talk about the reason for this increase. We all know that time of use allows us to maximize out hydro efficiency. If a family uses power during off peak times, they actually will be saving just under 5 cents per kWh. That is an easy thing to do if we just wait to run our dishwashers and dryers after 9pm….something most of us do anyways. So technically, depending on the responsible use of power, we’re actually SAVING money on our hydro bill. Go figure!
Now don’t get me wrong here. I hate paying hydro fees as much as the next person but we are in the midst of an electricity crossroads. We can traipse down the road to crisis as we’re doing now, by not paying the fair price for power, or we can be grown-ups and live within our means and by investing in a more sustainable and robust electricity infrastructure. We can’t have it both ways. Hudak is playing the oldest trick in the book by playing on people’s insecurities about the pocketbook. Fine, he can do that but he needs to be serious about his valuations.
Sometimes one wonders if perhaps while studying the power generation issue , Mr. Hudak has been accidentally inhaling transformer fumes.