Liberals confirm end to debt retirement charge on residential hydro bills

TORONTO - Ontario's governing Liberals have confirmed that the debt retirement charge will be taken off residential hydro bills starting in 2016.

Energy Minister Bob Chiarelli made the announcement Wednesday as the Liberals tackle high hydro bills -- one of their biggest political liabilities going into a possible spring election.

The debt retirement charge was introduced in 1998 to help pay down the debt of Ontario Hydro, the former Crown corporation which was later split into several companies.

Chiarelli says the government will also look at ways to reduce electricity costs for low-income families when the Ontario Clean Energy Benefit -- which takes 10 per cent off hydro bills -- expires on Dec. 31, 2015.

The opposition parties have zeroed in on the rising cost of electricity, saying it will climb even higher because of the Liberals' cancellation of two gas plants in Oakville and Mississauga, which could end up costing up to $1.1 billion.

The minority Liberals will table their budget next week, but need the support of at least one opposition party to pass it and avoid an election.