Ontario nearly doubles household electricity rebates to cover surging hydro prices

Ontario Nearly Doubles Household Electricity Rebates Amid Rising Hydro Prices

Electricity prices in Ontario have surged by nearly 30%, but most residents may not have noticed due to a significant increase in the Ontario Electricity Rebate. The rebate now covers almost a quarter of consumer power costs, effectively absorbing much of the price hike.

Although this means minimal changes to residential hydro bills, the enhanced subsidy will cost taxpayers an estimated additional $2 billion annually, adding to the $6.5 billion the province already spends to lower electricity expenses.

As a consequence, power subsidies now constitute the bulk of Ontario's provincial deficit, projected to reach $14.6 billion this year.

“That’s money coming out of the provincial budget, which otherwise would have gone to deficit reduction, schools and hospitals, and instead is going to effectively socialize the cost of these increases in electricity costs,” said Mark Winfield, a political science professor at York University who studies electricity policy.
“The political cost of making people pay for these increases would be unacceptable,” Winfield added, highlighting that hydro prices were a key issue in Premier Ford’s 2018 election campaign. “So, instead, they hide these costs.”

Financial and Political Impact

Author's summary: Ontario’s sharp rise in electricity prices is masked by doubling the rebate, shifting billions in costs onto taxpayers and deepening the provincial deficit while avoiding direct consumer price hikes.

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The Star The Star — 2025-11-06

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