Fixed utility rates will provide no incentive for conserving energy consumption

The Star published an article Energy board proposal for fixed hydro rates called “Robin Hood in Reverse” in the Business section on Tuesday.  In a recent draft report, the Ontario Energy Board proposes a fixed monthly rate for utilities rather than charging households by how much power is consumed.  Sierra Club Canada is a founding member of the Green Energy Coalition (GEC).  “It is Robin Hood in reverse,” argues a letter from the GEC. 

The Green Energy Coalition says the proposal, if adopted, “will cause small customers (often with lower incomes) to subsidize large customers with higher peak demands.”

“It will sacrifice energy efficiency and raise consumption to give a disproportionate and unjustified break to larger businesses and wealthy individuals.”

Implementing a flat-rate fee will not encourage energy conservation.  This direction will eliminate any incentive for those who conserve and consume less.  The article has garnered a lot of attention with citizens expressing their discontent over the seemingly cash-grabbing scheme.