While the Doug Ford government’s about-face on renewable energy is certainly welcome and overdue, it is important to recall that the announcement does nothing to change the province’s overall trajectory on electricity, energy and climate change.
The province still lacks any meaningful strategy around climate change or planning process around its electricity system. The electricity system remains on the high-carbon, high-risk and high-cost pathway of nuclear and natural gas-fired generation expansion established for it by the Ford government.
The province needs a serious and substantive climate plan and an open, accountable and evidence-based approach to decision-making around energy. It still lacks both.
Mark S. Winfield, Toronto
Electricity will be taxed higher once all vehicles are electric
The fuel used by combustion engines (ICE) in cars, trucks, buses, etc. is currently taxed by both the Federal and Provincial governments and the total taxes, including HST and carbon tax, is difficult to pin down the exact amounts, but it is a lot.
However, if you recharge your electric vehicle (EV) at home overnight, you do not pay any gas tax. The tax on residential electricity is far less and is not vehicle specific. Plus, electricity rates are usually reduced overnight, whereas the gas tax is not.
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This will change very soon. The governments rake in a lot of money from gas taxes, far more than they do from electricity. But governments are encouraging the sales of EV over ICE which will in short time reduce the amount of fuel purchased, as well as reduce the collected gas taxes.
At the same time, electricity consumption will rise dramatically, almost doubling home consumption to recharge an EV every night or two. The government will have to spend more to make up that EV demand on electricity. The governments will see an increase in costs to provide power to the growing fleet of EV’s while seeing a significant drop in gas tax revenue.
No government will give up a tax wind fall for long, well maybe not Doug Ford.
Three main things will happen:
- Big oil will raise gas prices to make up the reduction in sales.
- Gas taxes will rise to partially make up the reduction in lost tax revenue.
- Expect a big tax hike on electricity to make up the net reduction in gas taxes.
That means everything that uses electricity will be taxed higher, not just what the EVs will consume, unless the government mandates separate meters for recharging EV’s, which is a very remote possibility.
The end result is everybody, including those that do not have any vehicle, EV or ICE, will pay more.
I am not against EVs, I have had one on order now for over two years. This is just a heads up that it will cost more than you may have planned on to own one.
Joel Berson, Toronto
