Changes and cancellations in Ontario energy policies and rules have disrupted several businesses and careers.

To be clear: I am not placing blame...just stating a fact.

Background

From the 1940's to the 1980's we had one Provincial Government. Since the mid-1980’s we have had many governments. During the last 30 years our Province's voters have ticked the boxes-for-change and brought a string of new and minority governments to power. The series of ruling-party-changes worked against good and sustainable energy policy.

The [government-controlled] energy sector has a long lead-lag cycle between political cause and constructed-project effect.

As a Province, Ontario continues to suffer the impact of major disruptions/cancellations in the energy sector.

As examples:

• We were to deregulate electricity in 2001...the quasi-deregulation lasted from May 2001 to November 2001, when it was replaced with even-more-quasi-deregulation. 
• We were to be off-coal by 2007. It is 2013 and we are still not fully off-coal. However, we do have some gas-generation plant,  wind-power, and high-electricity-rates issues to deal with. 

As another example – the breaking up of Ontario Hydro into OPG, Hydro One, Ontario Electricity Financial Corporation [i.e., ‘DebtCo’], etc. has created a series of cancellations. The government’s intent, in 2001, was to take Hydro One public. That plan was cancelled in 2002. In 2002 Hydro One’s commodity-selling subsidiary Ontario Hydro Energy was shut down…cancelling many contracts between that subsidiary and its suppliers.

OPG’s dominant position in the marketplace was to be removed…another cancellation…that did not happen. Generating the majority of Ontario's electricity, OPG controls the pricing of electricity in our Province. Now, that is not 100% true…the Province of Ontario itself has a say in the price we pay for electricity…to confirm this check the extent of ‘global adjustments’ on your monthly electricity bill. All of these aspects of more-than-quasi-deregulation of electricity and its brothers and sisters taking the form of solar-energy policy and wind-energy policy have had impact on the free market.

The Ontario Government controls our electricity costs and our tax costs. At the time Ontario Hydro was dismantled the electricity debt was $38 Billion. When we are talking electricity we are talking huge dollars. We do not know the current level of Ontario electricity debt because it has been obscured by the dismantling of Ontario Hydro.

The current ‘gas-generation plant issues’ are among the most-visible examples of the significant “cancellations” the energy sector has experienced during my career. I put the word “cancellations” in quotes because many will argue these are not cancellations…they are just changes. 

Ontario Energy Changes & Cancellations are a Consequence of Democracy

The energy changes & cancellations problem is largely one of communication.

Yes - energy policy changes and project cancellations increase either our electricity costs or our taxes or both.

Yes - energy changes and cancellations affect all of us in Ontario.

Again, that is not to say Ontario governments are to blame. Rather than pointing fingers of blame we should focus on accurate communication.

It is more accurate to say these cancellations are a consequence of democracy. If we accept that fact we can begin to take steps toward better places.

Voters elect governments. The extent of voters' fickleness determines the frequency of government change. The frequency of government change is directly proportional to the frequency of energy-policy change. And, energy-policy change creates energy-market changes and cancellations. And, energy-policy changes are very costly.

Yes - energy-policy changes are costly...but, blaming governments is a futile strategy.

Let's spend some time focusing on accurate communication.