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Energy Case Study

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Electricity prices in Ontario have soared in the past decade. Since 2006, the top rate for power has risen four times as fast as inflation (Morrow and Cardoso, 2017). Canadian’s electricity consumption per capita is high compared most of the world, the price has not stopped. Torontonian has haunted by this skyrocketed cost. Canada is a cold country, so they need heating systems. Also, Toronto is a big city so that there are high population density. Thus, not every Torontonians’ houses or condominiums have enough space to hung up their cloths, so they need to dry their cloths by dryers. However, it seems like that the residents can not solve the problem. Although Torontonians try to reduce their consumption of power, the price is …show more content…

Secondly, Ontario’s electricity is over supplied the power than the residents consume, even though Ontarian’s demand is decreasing. Actually, the government is locked into contracts to purchase that power regardless. It sells off the excess to the U.S., at rates below the cost of production. The long term contract and selling to the U.S. are the cause of setting higher electricity bills. Finally, hydro worker is well paid. In 2014, Ontario Power Generation workers had 4,279 employees, with salaries totalling 550 million dollars. It is because of a long term contract which called twenty-year contract when they built new power plants. The contracts essentially guaranteed that the companies would receive a certain amount of revenue. The auditor general flagged in 2013 that generous salaries, pensions and benefits at Ontario Power Generation were partly to blame for rising hydro prices(Morrow and Cardoso, 2017). Because of decisions by the government, the cost of electricity has been skyrocketing. Ontarians pay rapidly paces for their power than any other province. For example, Quebec enjoys rates less than half of Toronto. In November, 2006, off-peak electricity cost 3.5 cents a kilowatt hour, mid-peak power cost 7.5 cents a kilowatt hour and on-peak, when the power is most demanded, was 10.5 cents a kilowatt hour. In November, 2016, it increased to 8.7 cents, 13.2 cents and 18 cents. That means

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