Apr. 29, 2002. 11:39 PM Eves under fire for 'sham' Hydro hearings
Meetings moved to Tuesday in London from today in Toronto From Canadian Press
Critics condemned the Ontario government today for using "sham" public hearings to blunt widespread opposition to its plan to deregulate and privatize the province's electricity market.
The plan will lead to higher power prices, one major Canadian bank predicted as critics also denounced as "fraudulent" the sale of electricity contracts by Hydro One, one of the province's largest power retailers.
"People across this province want the government to listen to them," said New Democrat Leader Howard Hampton.
"They want a say before the most important public asset in this province is sold off by this government to its corporate friends."
Late Friday, "in the dark of the night," the government announced it would be holding two hours of invitation-only hearings in a "large cubby-hole" at a downtown hotel today, Hampton said.
The government postponed those hearings late Sunday, saying presenters needed more time. The hearings were rescheduled for Tuesday in London, Ont.
That's nonsense, said two of the presenters — a pair of unions whose recent court victory stalled the $5-billion sale of the province's electricity grid, billed as the largest privatization in Canadian history.
Judy Darcy, national president of the Canadian Union of Public Employees, accused the government of cancelling the hearings to avoid embarrassment before a by-election Thursday in which Premier Ernie Eves will try to win a seat in the legislature.
"The government of Ontario is showing complete and utter contempt for the people of this province," Darcy said. "It's showing complete and utter contempt and disrespect for the public interest."
An aide to Eves said "there's no truth to that whatsoever."
Energy Minister Chris Stockwell said hearings would be held in 10 cities before May 7 or 8, with the first one slated for Tuesday morning in London.
He also said there would be legislative committee hearings once the bill allowing the sale of Hydro One is introduced, with an eye to having it passed by June 28.
"I don't want to suggest we aren't rushing — of course we are," said Stockwell, who nevertheless insisted he wants "to hear from people."
Last week, Eves promised "meaningful" consultations over the sale of Hydro One, which polls suggest is opposed by a majority of Ontario residents.
The NDP has received thousands of complaints from consumers opposed to the privatization, including one from Wendy LeClair, a forester who said she's thinking about getting a wood stove.
"What am I going to do if my bill goes up 40 per cent?" LeClair said from Wawa, Ont.
"Certainly, all the fuzzy and warm ads from the Tories are not really telling me that my hydro bill is not going to go up."
But with the power generation side of the market set to open on Wednesday, an analysis by the TD Bank offered little comfort to those worried about price hikes.
"Electricity supply reserve margins will be tighter than previously thought (although) the odds of an energy crisis remain low," the TD Economics paper states.
"(Still) electricity bills are likely to be higher under the new system in 2002 and 2003 . . . (but) future prices could fall to below those that would have prevailed if the restructuring had not occurred."
But Livia Prince, 74, of Toronto, said she's "bewildered" and worried.
"Everything goes up except the income from my investments," said Prince.
"I feel totally insecure. I have no idea whether the lights are going to go out in my house on Wednesday."
Prince was one of 196,000 customers who signed a fixed-term electricity contract with Onsource, the retail arm of Hydro One, which is now selling the agreements to Alberta-based Epcor as part of a $48-million deal.
Liberal member Mike Colle condemned the deal as a "flip" to Union Energy, an Ontario subsidiary of Epcor.
"What Onsource has done is really a massive fraud on the people they've signed contracts with," said Colle.
The contracts were sold on the basis that customers would be dealing with an arm of publicly owned Hydro One, he said.
"It's the hoodwinking that bothers me," said Prince, who signed in October.
A Hydro One spokesperson said the fine print in the contract does allow for the sale.
Colle has written the Ontario Energy Board, which regulates the sector, and Consumer Minister Tim Hudak calling for an investigation.
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