Debt retirement charge disappearing from home Hydro bills

The Ontario Liberals unveiled a plan Wednesdayto remove the monthly debt retirement charge from household hydro billsthoughthat doesn't necessarily mean the total amount owed will decrease.

For a decade, Ontario Hydro consumers have been paying off billionsin long-leftover debt from the old Ontario Hydro utility. Energy minister BobChiarelliannounced as of January 1,2016,those payments will stop.

"That's real relief for Ontario's residential customers," saidChiarelli.

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The savings will average $67 per household bill each year, but there's more to the final equation.

On an averageHydro One bill, a$5.60 debt retirement charge is what's being scrapped.But, at the same time, the government is also killing the Clean Energy Benefit. That's anotherline on the bill that typically creditsan average customer almost $17 per month.

The bottom line ismonthly payments are likely to increase, on averageby $11.

"This is a government that has driven rates up and will continue to drive rates up. They have not changed the policies that have lead to these high prices," saidPeterTabuns, theNDP'senergy critic.

And though the debt retirement charge will disappear from residential bills, the province's debtis still thereat last check almost $4billion. Businesses will have to keep paying that off until it's down to zero.

"The government is only doing this to position itself before an election," saidLisaMacLeod, the Progressive Conservative's energy critic.

Electricity rates aregoing up across the provinceon May 1, following a rate hike approved by regulators last week.

The average Ontario house will pay roughly $2.83 more per month, a hike of 2.4 per cent, for 800 kWh of electricity according to the Ontario Energy Board. The hike also applies to small businesses.The board approved aslightly larger hikein electricity rates in November and in Marchapproved a 40 per cent jumpforEnbridgegas customers.