Ontario Premier Ernie Eves and his Progressive Conservative government are hoping they can clear up the confusion surrounding consumers electric bills.
The Eves government announced Monday that it is launching a review of all the items on the electricity bills of families, small businesses and farmers across Ontario.
Energy Minister John Baird has appointed Sal Badali, a business adviser with Deloitte Consulting in Toronto, to carry out the review and make recommendations.
"It's important to review how these charges on electricity bills are calculated and ensure they are fair and reasonable," Mr. Baird said. "Families, small-business owners and farmers need to know what they are paying is appropriate and clear, and I believe Mr. Badali will help us in this effort."
Mr. Badali will review the way the charges are calculated and determine if the items are fair and clear, including the charges imposed by the Independent Electricity Market Operator and the fixed monthly customer charge imposed by local distribution companies.
He will also be making recommendations on a standard, province-wide electricity bill that consumers can easily understand. He will file a progress report to Mr. Baird within a month.
"People have told me how difficult it is to figure out the different charges on their hydro bills, and I, for one, agree," Mr. Baird said. "Bills vary from local utility to local utility, and we must take immediate action to determine common terms that are presented in a simple straightforward manner."
Liberal energy critic Michael Bryant said the Conservative government is continuing on its "journey of incompetence" as it tries to clean up the deregulation "mess" it created.
"This should have been done a year ago," Mr. Bryant told Canadian Press. "The incompetence costs of having to do it after they opened up the marketplace are an enormous waste of taxpayer dollars."
Monday's announcement in the latest of a long line of moved aimed at soothing Ontario residents recently jolted by soaring electricity bills.
Mr. Eves promised legislation to cap prices paid by Ontario's electricity consumers and said he would refund some of the money they have already spent in the province's chaotic energy market.
The plan will lower residential and small-business hydro rates to 4.3 cents a kilowatt hour, effective Dec. 1 and freeze the rates there.
People who signed fixed-term contracts for their hydro will also pay 4.3 cents a kilowatt hour.
The government said it will also refund every penny paid by consumers above the 4.3-cent price, retroactive to May 1, when Ontario's electricity market was opened to competition.
The first rebates are expected before the end of the year. The rest will be credited on future bills. Measures from the plan are expected to be in place until at least 2006.
The government also announced plans to give a tax holiday and other incentives to companies involved in environmentally friendly energy production in an effort to increase the province's electricity supply.
Under the government's six-month-old revamping of the electricity industry, competitive forces were supposed to set the price for electricity paid by consumers. This price was supposed to be held down because there was to be vigorous competition among suppliers. Instead, prices have soared over the past four months.
Since May 1, the basic wholesale price for electricity has averaged 5.17 cents a kilowatt-hour, according to the Independent Electricity Market Operator, which is responsible for ensuring the province has enough power to meet demands. When the market was being set up, the price was supposed to average 4.3 cents.
At times the prices have hit six cents and seven cents, and even exceeded eight cents.