Newly unearthed documents suggest Ontario’s Liberal government could have saved hydro customers $1.5 billion by terminating an agreement with Samsung, but decided against it.
The papers, uncovered by Progressive Conservative Finance Critic Vic Fedeli, relate to the 2009 Samsung green energy agreement that would take $10.5 billion from Ontario hydro bills, and pay it to a Samsung consortium over 20 years. In return, Samsung would deliver green energy and build factories in the province, employing 900 people.
Four years into the deal, however, a confidential document from staff at the Ministry of Energy advised the government it could save hydro customers $5.2 billion by terminating the agreement. This was because the Korean consortium was missing contract targets and deadlines on electricity projects that Ontario didn’t even need anymore.
But instead of calling off the deal, the Liberals renegotiated the contract to save only $3.7 billion --leaving $1.5 billion in hydro savings on the table.
Fedeli said the decision not to terminate the agreement with Samsung will cost the taxpayers.
“We’ve been paying and we’re going to be paying for 20 years,” he said. “It’s a 20-year contract--$1.5 billion that the taxpayer need not have had to pay.”
But the Liberals are accusing Fedeli of “spinning conspiracy theories,” arguing that the deal has created jobs and green energy solutions for Ontario.
A spokesperson for Ontario’s minister of energy said Samsung now has four manufacturing plants up and running in the province, but has yet to create the 900 jobs promised in the deal.
Ontario gov't ignored chance to cut $1.5B in hydro bills: documents | CTV News
The papers, uncovered by Progressive Conservative Finance Critic Vic Fedeli, relate to the 2009 Samsung green energy agreement that would take $10.5 billion from Ontario hydro bills, and pay it to a Samsung consortium over 20 years. In return, Samsung would deliver green energy and build factories in the province, employing 900 people.
Four years into the deal, however, a confidential document from staff at the Ministry of Energy advised the government it could save hydro customers $5.2 billion by terminating the agreement. This was because the Korean consortium was missing contract targets and deadlines on electricity projects that Ontario didn’t even need anymore.
But instead of calling off the deal, the Liberals renegotiated the contract to save only $3.7 billion --leaving $1.5 billion in hydro savings on the table.
Fedeli said the decision not to terminate the agreement with Samsung will cost the taxpayers.
“We’ve been paying and we’re going to be paying for 20 years,” he said. “It’s a 20-year contract--$1.5 billion that the taxpayer need not have had to pay.”
But the Liberals are accusing Fedeli of “spinning conspiracy theories,” arguing that the deal has created jobs and green energy solutions for Ontario.
A spokesperson for Ontario’s minister of energy said Samsung now has four manufacturing plants up and running in the province, but has yet to create the 900 jobs promised in the deal.
Ontario gov't ignored chance to cut $1.5B in hydro bills: documents | CTV News
