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Society President has Anti-Privatization Op-ed Published in the Star

Society President Scott Travers spelled out the case against any further privatization of the Hydro One in an op-ed in the Toronto Star.

Travers’ op-ed argues that Premier-designate Ford would do well to understand the mistake that the Liberal government made when it decided to begin the privatization of Ontario’s prized public energy utility. Rather than doubling-down on a bad idea, the incoming government would do well to find a path back towards acquiring majority control.

Aside from the loss of hundreds of millions of dollars to the province, there is no evidence that a privatized utility would be more efficient.

“A 2016 study by MPR Associates found that total costs for fully privatized local public utilities were 34 per cent higher than those that were partially privatized, and as much as 77 per cent higher than those that were fully public owned. Moreover, on three different measures of customer reliability, the fully public utilities performed markedly better than privatized entities.”

So if it will cost the public money and will result in a less efficient utility who will benefit? Investors.

“Regulated electricity assets represent virtually risk-free investments with guaranteed rates of return through the regulator. This makes them ideal targets for Bay Street. That is the source of any push to fully privatize Hydro One.”

Read the full article here: https://www.thestar.com/opinion/contributors/2018/06/26/should-ontario-sell-the-rest-of-hydro-one-no.html