Howard Hampton says northern Ontario will feel brunt of Hydro One sale

The former OntarioNDP leader says the sale of Hydro One shares will impact the north more than anywhere else in the province.

Howard Hamptonsays he is worried that the largest privatizations of a public company in two decades will drive up rates and cut services to help boost the bottom line for shareholders.

"They're the people who are going to pay the price on this," Hampton said of northern and rural communities. "The people who will benefit will be overwhelmingly in the Greater Toronto Area because that's where the majority of the transit investments will be made."

• Hydro One shares to go on sale Thursday
• Hydro One announces share issue hours
• Ontario sees hydro rates jump again

Hydro One began selling shares Thursdayon the Toronto Stock Exchange and funds raised will help the province fund major infrastructure projects, which are mostly slated to go up in southern Ontario.

The goal is to raise a couple billion dollars by selling 15 per cent of the electricity company.

CBC business commentator Michael Hlinka, a former stock broker, adds there may be an incentive for some customers to invest in the stocks.

"There's a lot of people who are saying: 'Look, I'm paying these bills every month. I might as well get a little kickback from it,'"he said.

However, it remains unclear whether the new shareholders will be focused on serving public needs or simply making money. For this reason, Hlinka warns the stocks could be a risky purchase for investors.