TORONTO — The federal government must change its proposed electricity generation regulations because they would add “$35 billion in additional costs by 2050” according to an analysis by the Independent Electricity System Operator (IESO) of upcoming regulations on emissions restrictions from electricity generation (“Clean Energy Regulations” or CERs). 

The study says Ontario would need to add double what it’s already planning, which is “not feasible” in that time frame. But if the Province were to somehow do so, building enough new electricity “generation” to offset natural gas restrictions would add $35 billion in costs by 2050, increasing residential bills by $132-168 per year starting in 2033, the IESO said. Costs for industrial and commercial customers, from small businesses to manufacturing, would also increase by 13-17 per cent. In effect, the CER “ would be a new, 5x more costly, CarbonTax — driving up the costs of energy bills” says Ontario Energy Minister Stephen Lecce (in the pic above, from his Twitter page X – @ Sflecce), who wrote to the federal Environment and Energy ministries, urging them to change the rules. “Ontario cannot support any regulatory approach that imposes thousands of dollars of new costs on consumers while compromising system reliability” Lecce wrote to Steven Guilbeault and Jonathan Wilkinson.

“While remaining on track to meet its emissions targets, Ontario continues to attract transformative investments in sectors such as automotive and the electric vehicle supply chain, life sciences and advanced manufacturing. Therefore, it is imperative that regulatory frameworks support — not hinder — our economic competitiveness” also points out Lecce, underlining that thanks to the Ontario government initiatives already underway or planned (such as new nuclear and renewable resources expected to come online in the 2040s), Ontario will still reach net zero emissions by 2050 “regardless of whether the CER is implemented or not”.

The Liberals’ Clean Electricity Regulations would be a new, 5x more costly, #CarbonTax — driving up the costs of energy bills.

Under this scheme & as confirmed by @IESO_Tweets — Ontario would face $35B hit to our economy despite having a near zero-emissions grid in 2050 due to… pic.twitter.com/guJxLbaMEh

— Stephen Lecce (@Sflecce) December 2, 2024

“Our government has a plan, and it doesn’t involve a tax. We are leveraging clean tech to keep energy affordable for families and reliable for industries. Paradoxically, the CER undermines Ontario competitiveness and makes life more expensive, just as the incoming US administration moves in the opposite direction. This is already compounded by the existing CarbonTax that drives up energy bills by 25% today” says Lecce.

Guilbeault and Wilkinson responded by saying they were also keeping affordability in mind when designing the new rules. “When factoring in the $15 billion Ontario is estimated to receive from the federal government through Canada’s Clean Electricity Investment Tax Credit by 2050, we are making sure that there are no impacts on Ontario ratepayers, all while building a reliable, clean grid that will create countless good, sustainable, middle-class jobs for decades to come” they wrote in a joint statement. The federal government also points to billions of dollars in investments it has made to support emissions reductions in Ontario’s grid, including for nuclear projects.