NEW – ON: Independent report on government energy subsidies says billions to benefit only natural gas and electricity

Ontario’s independent Financial Accountability Office (FAO) released a report on government energy subsidy programs on February 16, 2022. Almost $40 billion in energy subsidies, primarily earmarked for the electricity sector, are promised over the next 20 years.

The report outlines a number of electricity subsidy programs, which will cost taxpayers $118 billion over 20 years. Last year, the province paid out $6.9 billion in subsidies to both businesses and consumers. The vast majority of these programs and subsidies provide direct benefit to only two energy sectors: natural gas and electricity.

The FAO report noted that many of these programs benefit wealthy, large home owners most. “Those who consume the most electricity get the biggest benefit,” said Financial Accountability Officer Peter Weltman. Critics of government energy policies, including all opposition leaders, note that these programs should be targeted to those in most need, lower income families and rural residents.

Approximately $39.8 billion in energy subsidies are dedicated to businesses over the next two decades, about 60 per cent of which will go to small businesses, farms and long-term care homes.

Over the past two years, the CPA has made the case to the Ontario government that these programs should include other energy types, particularly propane. In November 2020, an energy relief program for eligible businesses whose operations were significantly impacted by COVID-19 emergency management measures, explicitly included propane bills as eligible for rebates. This announcement provided a tangible signal government had heard the voice of the propane industry in this instance.  
  
The FAO report findings are important for Ontario’s propane industry as they provide detailed current and forecast expenditures of this significant spending benefitting only natural gas and electricity users and suppliers. The CPA will use the data provided in this comprehensive study to advocate for policy and program parity for the propane sector in the lead up to the June 2, 2022, provincial election. 

Access the full report here.