In a major announcement this week, Ontario’s Liberal government announced it will sell off 60 per cent of Hydro One.
The province will retain a 40 per cent stake in Hydro One, and no minority shareholder will be able to buy more than 10 per cent of the company. The government says the move to float Hydro One on the stock market will raise $4 billion.
The province will also sell off Hydro One Brampton and merge it with three other local electricity companies, covering Hamilton, Mississauga, Vaughan, Markham, Barrie, and St. Catharines. The move will create the second largest hydro distributor in the province. While the move is expected to yield revenue for a cash-strapped province, critics fear the move will cause hydro rates to spike. Consumers may end up having to pay even more to have their lights on in the months to come.