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Proposed Hydro One privatization eerily similar to Nova Scotia Power sell-off

Today, electricity prices in Nova Scotia are higher than in any other province. 

Ottawa (30 April 2015) — There are a number of disturbing similarities between the proposed privatization of Hydro One in Ontario and the sell-off of Nova Scotia Power in 1992. That should leave Ontarians very worried.

In both cases, selling electrical utilities is viewed as a quick and easy source of funds for the provincial government. The long term costs and consequences are being ignored.

Privatization means higher electricity prices – even if they’re regulated

The Ontario government is trying to claim that, because the Ontario Energy Board will have to approve increases, Ontarians will somehow avoid the rate increases that come with privatization. Two decades ago, Nova Scotians were fed the same line. But because regulators have to allow a profit margin for private investors, electricity prices in Nova Scotia still increased.

Before Nova Scotia Power was privatized, electricity prices in Nova Scotia were lower than prices in Ontario. Today, electricity prices in Nova Scotia are higher than in any other province, even though the Nova Scotia Utility and Review Board (the Nova Scotia equivalent of the Ontario Energy Board) has to approve prices.

If the government needs quick cash, even the 40 percent share in Hydro One is gone

In 1992, the Nova Scotia government claimed that it would be able to protect the public interest by holding onto 25 per cent of Nova Scotia Power — the same claim the Ontario government is making today about its plan to hold onto 40 percent of Hydro One. But when the Nova Scotia government saw it could get a good price for its 25 per cent share, the plan to retain 25 per cent of Nova Scotia Power was dropped. 

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The National Union of Public and General Employees (NUPGE) is one of Canada's largest labour organizations with over 340,000 members. Our mission is to improve the lives of working families and to build a stronger Canada by ensuring our common wealth is used for the common good. NUPGE