Rising power bills continue to shock the public
Rural residents are scrimping and saving energy but say bills are rising beyond their means
ORNELLA MONTINI HAS TRIED installing LED lights, reducing her air conditioning use, hang drying her laundry, and using electricity when prices are cheapest — but nothing seems to stop the rise of her hydro bill.
She has seen her home’s monthly electricity bill rise from about $120 to more than $300 in the last five years with Burlington Hydro.
“How do you justify that kind of money?” asked Montini.
In an effort to combat negative reactions from rising electricity prices, the Liberal government announced Monday it would be cutting the province’s eight-per-cent share of HST on power bills. Nine months ago, the province eliminated a 10per-cent reduction on electricity bills in the form of the Clean Energy Benefit program.
Monday’s change will mean an average annual saving of about $130 for urban hydro users and $540 for rural.
Montini is skeptical that the tax break will negate price increases.
“They are going to keep raising the prices anyways,” she said.
The cost of electricity at Montini’s hair salon — Ornella Barber and Hair Styling — means she’s now paying $600 in overages at the end of the year to bridge what’s not covered by her rent. When she started her business five years ago, her electricity usage was completely covered.
“Mom and pop shops are having a hard time making a living — I’m making a loss,” said Montini.
Montini is now reducing her grocery spending.
“Now, I do what I actually need, not what I want,” said Montini. She has switched to eating more veggies, and even freezing cabbage while they’re cheap to save money in the winter.
Robert and Charlotte Field of Simcoe have been struggling to find where their money is going. They live in an 2,400 square foot bungalow with only two residents. Their home is of similar construction and size to surrounding homes, but they pay a Hydro One bill that’s about twice as expensive as their neighbours. Following recommendations from Hydro One, the retired couple installed more efficient bulbs, replaced their aging fridge and freezer, and replaced their power-sucking television. The couple follows time-of-use guidelines, their stove and water heater runs on gas.
Charlotte says Hydro One has confirmed their meter is not an issue. After all that work, their July hydro bill came in at $372. The couple pays monthly.
“It just boggles my mind,” said Charlotte. “They’ve got to be wrong.”
Charlotte said a Hydro One ombudsman response to their inquiry stated the elimination of the Ontario Clean Energy Benefit, and increased rates likely caused their bill to increase, despite the energy saving efforts. Charlotte wasn’t satisfied with the answer.
“Why do they promote energy savings, if it doesn’t get rid of high bills?” asked Charlotte.
Hamiltonian Jim Warren is in a contract with a hydro retailer.
Even though he’s locked in at a monthly rate, his “global adjustment” rate has been climbing.
The global adjustment fee has risen from about 3.5 c/kWh in the fall of 2010 to about 11.1 c/kWh on his April-May bill — giving him a $154.72 global adjustment fee on top of his $82.38 bill.
“It’s impossible to understand how this is calculated. We’re left in a position where we’re simply being told what to pay,” said Warren.