Smart meters are nothing more than a tax grab

MPP Julia Munro Many Innisfil residents and small businesses are noticing a new addition to their homes in the last few months — provincially-mandated 'smart meters' — which are replacing traditional meters to measure the electricity used in homes.

Premier Dalton McGuinty may call them smart meters, but I call this another tax grab. Like it or lump it, every Ontario home and small business will be outfitted with a smart meter under the current McGuinty government scheme.

Smart meters are programmed to monitor when and how much electricity is used. This information is then used to charge higher electricity rates during peak demand periods and lower rates during off-peak hours. One of the arguments for smart meters is conservation. By imposing a premium on time of use, the government hopes to reduce usage. Yet even if people adjusted their lifestyles to divert usage to off-peak times, the cost could be reduced, but not the usage.

Today, hydro users pay the same rate for all hours of the day. When the switch is thrown on the smart meters, average hydro bills will increase substantially.

The new smart meter rate plan will see consumers paying about 9.7 cents per kilowatt hour during peak periods, 7.1 cents during midpeak times, and 3.4 cents during off-peak hours. This means the only time rates won’t increase under the smart meter structure is during an off-peak period, which is from 10 p.m. to 7 a.m. weekdays, and on weekends and holidays. Furthermore, the actual cost of the smart meter will also be paid by the homeowner or business — even if they did not want it.

Aside from the obvious inconveniences of forcing people to run their dishwashers or do their laundry after 10 p.m. each night to avoid paying nearly double the current price for electricity, the smart meter rate structure discriminates against Ontario residents who are home during those peak hours — namely seniors and parents with young children.

Turning an air conditioner off before you go to work is fine for people who are gone most of the day, but what about retirees who are home regularly, particularly seniors (on a fixed income, mind you) with heart conditions or other medical ailments?

Doing laundry at 10 p.m. may not be an issue for a bachelor, but what about the single parent who needs to utilize every hour of the day to get things done around the house while their kids are in school?

How many parents of young children have the energy to do anything after 10 p.m.?

The smart meter program should be an option for consumers who want it, or could benefit. The current plan is nothing but a hidden tax grab on the backs of seniors, families and small businesses.

Instead of mandatory smart meters, what we need to do is build a real conservation culture in Ontario. When the government first announced smart meters, the PC Party proposed offering consumers financial incentives to replace old appliances with more energy efficient models, to install solar panels and undergo energy audits. We wanted to remove red tape barriers to allow more co-generation and stimulate new wind, biomass and geothermal power sources.

Most importantly, government should lead by example by making its buildings more energy efficient, reducing use in offices by 10 per cent over four years, and by purchasing more green power.

Instead of putting the burden on seniors and young families, a better plan involves government leading by example and providing positive financial incentives for people to conserve.

And don’t forget, as of July 1, no matter how much residents are paying for hydro, they will pay more because the McGuinty government’s new eight per cent harmonized sales tax increase will come into effect.