Nuclear workers see risks as conditions worsen

By Reuters


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Worsening working conditions, inadequate pay rises, pressure to work faster and safety concerns -- these are the familiar grievances of a disaffected work force.

When such complaints arise in France's most sensitive industry — nuclear power — alarm bells start ringing.

Cyril Bouche and his colleagues at the Tricastin nuclear plant in the rolling hills of the Drome region say the state-owned utility EDF, which runs France's 58 nuclear reactors and has been expanding into the United States and Britain, is not only cutting costs, but also cutting corners.

The 39-year old, who works for one of EDF's many subcontracting firms, says working conditions at the plant — hit by a series of incidents that shook public trust in 2008 — have deteriorated over the past five to 10 years.

"Today France is selling reactors abroad but it should first put its own house in order," said Bouche, the only one of 10 workers interviewed by Reuters who was prepared to be identified.

The French government has put forward state ownership of its nuclear sector as a guarantee of its safety, but former monopoly EDF subcontracts 80 percent of the maintenance at its nuclear reactors to firms such as Vinci, Areva, GDF Suez or Bouygues.

EDF denies the suggestion that subcontracting implies it is skimping, pointing to plans to more than double investments to 8 billion euros in 2009 from 2005 levels to build and modernise nuclear, fuel-fired power plants and hydraulic plants.

"We subcontract because we have very specialized activities. When we change the reactor's fuel, this is a very sophisticated activity," said Philippe Gaestel, head of industrial strategy at EDF.

"We prefer to use subcontractors rather than do it ourselves. This means we have specialists and competencies that we couldn't have internally."

But independent experts including Yves Marignac, executive director of the information agency Wise-Paris, say safety margins in French nuclear power plants are shrinking as plants age, economic pressure mounts and trained staff retire.

"Even if it remains very unlikely, the probability of a serious nuclear incident is rising because of the way things are evolving, and this in itself is very worrying," he told Reuters by telephone.

France's nuclear safety record worsened in 2008.

Last year there was an increase of nearly one-third in nuclear incidents reported by the French nuclear safety watchdog at level one of the International Nuclear Event Scale (INES), which runs from 0 to 7.

The French nuclear safety board ASN said there had been 72 incidents at level one in 2008, up from 56 in 2007.

Nuclear is the main industrial sector of the Drome region famous for the nougat delicacy made in the city of Montelimar.

"All in all nuclear must make up between 75 and 80 percent of the region's employment," said Guy Durand, deputy mayor to the town of Pierrelatte, one the three cities which share the nuclear site of Tricastin.

"It's enormous... today there are around 5,000 permanent jobs on the industrial site," Durand added.

For Bouche and others, good pay was the lure to an industry that requires working long hours in dark and confined spaces with the constant risk of exposure to radiation.

A former car mechanic on the minimum wage, Bouche said he doubled his salary when he entered the nuclear sector 18 years ago but that pay had not increased with inflation.

France generates 80 percent of its electricity from nuclear power and is keen to export its expertise, which stretches back three decades, as other countries turn to nuclear to cut carbon emissions and boost their energy independence.

It opted for nuclear after the 1973 oil crisis pushed oil to then-record levels, although the choice was political: the costs of nuclear and fossil fuels are not easy to compare.

Thanks to state intervention in pricing, French consumers pay one of the cheapest rates for electricity in Europe. The French public continued to back the expansion of the industry after the explosion of the Chernobyl nuclear reactor in Ukraine in 1986, as other countries turned their back on the technology.

But as media attention mounts on atomic energy and France plans to extend its reactors' lifespans and build new ones, public acceptance is diminishing.

A 20-country survey earlier this year by Accenture showed that while public resistance to nuclear power had eased in many countries in the last three years, French consumers had become more negative.

The Tricastin workers say they are worried about mounting numbers of small incidents, and point to a lack of oversight.

"In the past we used to work hand-in-hand with EDF on maintenance operations, but little by little EDF has withdrawn to let subcontractors take over," said one of Bouche's colleagues, speaking on condition of anonymity because he feared he may lose his job.

"Now EDF has lost its knowledge," he said, adding that EDF agents now merely played a monitoring role.

Annie Thebaud-Mony, head of research at the French health institute Inserm, said jobs in nuclear power plants were becoming less secure due to privatization and competition.

EDF partially floated its stock in 2005. Core profit for 2008 fell by more than 6 percent to 14.24 billion euros, and the company pledged in February to focus on organic growth after acquisitions in Britain and in the United States inflated its debt to nearly 25 billion euros.

But the company denies it has gradually pulled out from maintenance, saying it chose to subcontract from the outset.

"This was the optimal option to have quality work with specialists who operate permanently on our sites," said EDF's Gaestel. He said the company spent some 1.5 billion euros annually on maintenance, a relatively stable sum for some years.

Bouche and his colleagues say maintenance periods have considerably shortened. Each planned outage costs EDF around 1 million euros per day, the company has confirmed.

"Before, it took two months to do standard refuelling maintenance against three to four weeks now," said a logistics manager who heads a team of 30 and has been in the sector for 22 years.

EDF, which sells electricity to its neighbors, is under pressure to increase the availability of its aging reactors.

EDF's Gaestel said it was important for the operator to stick to its maintenance program drawn up in advance.

"What can be a problem though is when the planning drifts because of technical problems, like at the Tricastin nuclear site in 2008," he said.

France's nuclear watchdog ASN said in its 2008 report that maintenance operations were not always satisfactory because of inappropriate documentation, insufficient protective equipment and too tight a schedule.

It said subcontractor training should be improved.

For the workers, the tight maintenance schedules are adding to the risk of accident.

"We work on top of each other in the nuclear reactor which is very narrow and where it's hard to operate," said a 53-year-old worker. "We can be hit on the head by a hammer or be contaminated. Before, those risks did not exist because we used to take it in turns to work," he said.

While EDF agents have public sector contracts, which means a job for life, subcontractors fall in the private sector, making them vulnerable to job cuts. Their firms risk losing their contracts with EDF every three years.

EDF said not just any company could work in the nuclear sector.

"You have to produce your credentials to work in the nuclear field," Gaestel said. "Before a company can apply to our tenders there is a six-month long audit," he said, adding EDF planned to extend current contracts with subcontractors to six years.

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Recommendations from BC Hydro review to keep electricity affordable

BC Hydro Review Phase 2 Recommendations advance affordable electricity rates, clean energy adoption, electrification, and demand response, supporting heat pumps, EV charging, and low-income programs to cut emissions and meet CleanBC climate targets.

 

Key Points

Policies to keep rates affordable and accelerate clean electrification via heat pump, EV, and demand response incentives.

✅ Optional rates, heat pump and EV charging incentives

✅ Demand response via controllable devices lowers peak loads

✅ Expanded support for lower-income customers and affordability

 

The Province and BC Hydro have released recommendations from Phase 2 of the BC Hydro Review to keep rates affordable, including through a provincial rate freeze initiative that supported households, and encourage greater use of clean, renewable electricity to reduce emissions and achieve climate targets.

“Keeping life affordable for people is a key priority of our government,” said Bruce Ralston, Minister of Energy, Mines and Low Carbon Innovation. “Affordable electricity rates not only help British Columbians, they help ensure the price of electricity remains competitive with other forms of energy, supporting the transition away from fossil fuels to clean electricity in our homes and buildings, vehicles and businesses.”

While affordable rates have always been important to BC Hydro customers, amid proposals such as a modest rate increase under review, expectations are also changing as customers look to have more choice and control over their electricity use and opportunities to save money.

Guided by input from a panel of external energy industry experts, government and BC Hydro have developed recommendations under Phase 2 of the BC Hydro Review to reduce electricity costs for individuals and businesses, even as a 3.75% increase has been discussed, as envisioned by the CleanBC climate strategy. This is also in alignment with TogetherBC, the Province’s poverty reduction strategy, and its guiding principle of affordability.

“As we promote increased use of electricity in B.C. to achieve our climate targets, we need to continue to focus on keeping electricity rates affordable, especially for lower-income families,” said Nicholas Simons, Minister of Social Development and Poverty Reduction. “Through the BC Hydro Review, and continuing engagement with stakeholders and organizations to follow, we are committed to finding ways to keep rates affordable, so everyone has access to the benefits of B.C.’s clean, reliable electricity.”

Recommendations include having BC Hydro consider providing more support for lower-income BC Hydro customers, informed by a recent surplus report that highlighted funding opportunities. These include incentives and exploring optional rates for customers to adopt electric heat pumps, and facilitating customer adoption of controllable energy devices that provide BC Hydro the ability to offer incentives in return for helping to manage a customer’s electricity use. 

Electrification of B.C.’s economy helps customers reduce their carbon footprint and supports the Province’s CleanBC climate strategy, and is an important part of keeping electricity affordable even amid higher BC Hydro rates in recent periods. As more customers make the switch from fossil fuels to using clean electricity in their homes, vehicles and businesses, BC Hydro’s electricity sales will increase, providing more revenue that helps keep rates affordable for everyone.

“We’re making the transition to a cleaner future more affordable for people and businesses across British Columbia through our CleanBC plan,” said George Heyman, Minister of Environment and Climate Change Strategy. “By working with BC Hydro and other partners, we’re making sure everyone has access to clean, affordable electricity to power technologies like high-efficiency heat pumps and electric vehicles that will reduce harmful pollution and improve our homes, buildings and communities.”

Chris O’Riley, president and CEO, BC Hydro, said: “Given the impact of COVID-19 on British Columbians, affordability is more important than ever. That’s why we are committed to continuing to keep rates affordable and offering customers more options that allow them to save on their bills while using clean electricity.”

In July 2021, the Province announced a first set of recommendations from Phase 2 of the BC Hydro Review amid a 3% rate increase approved by regulators. The next announcement from Phase 2 will include recommendations to increase the number of electric vehicles on the road.

In addition, as part of the Draft Action Plan to advance the Declaration on the Rights of Indigenous Peoples Act, the Province is proposing to engage with Indigenous peoples to identify and support new clean energy opportunities related to CleanBC, the BC Hydro Review and the British Columbia Utilities Commission Indigenous Utilities Regulation Inquiry, and to consider lessons from Ontario's hydro policy experiences as appropriate.

B.C. is the cleanest electricity-generation jurisdiction in western North America, with an average of 98% of its electricity generation coming from clean or renewable resources.

 

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Australia PM rules out taxpayer funded power plants amid energy battle

ACCC energy underwriting guarantee proposes government-backed certainty for new generation, cutting electricity prices and supporting gas, pumped hydro, renewables, batteries, and potentially coal-fired power, addressing market failure without direct subsidies.

 

Key Points

A tech-neutral, government-backed plan underwriting new generation revenue to increase certainty and cut power prices.

✅ Government guarantee provides a revenue floor for new generators.

✅ Technology neutral: coal, gas, renewables, pumped hydro, batteries.

✅ Intended to reduce bills by up to $400 and address market failure.

 

Australian Taxpayers won't directly fund any new power plants despite some Coalition MPs seizing on a new report to call for a coal-fired power station.

The Australian Competition and Consumer Commission recommended the government give financial certainty to new power plants, guaranteeing energy will be bought at a cheap price if it can't be sold, as part of an electricity market plan to avoid threats to supply.

It's part of a bid to cut up to $400 a year from average household power prices.

Prime Minister Malcolm Turnbull said the finance proposal had merit, but he ruled out directly funding specific types of power generation.

"We are not in the business of subsidising one technology or another," he told reporters in Queensland today.

"We've done enough of that. Frankly, there's been too much of that."

Renewable subsidies, designed in the 1990s to make solar and wind technology more affordable, have worked and will end in 2020.

Some Coalition MPs claim the ACCC's recommendation to underwrite power generation is vindication for their push to build new coal-fired power plants.

But ACCC chair Rod Sims said no companies had proposed building new coal plants - instead they're trying to build new gas projects, pumped hydro or renewable projects.

Opposition Leader Bill Shorten said Mr Turnbull was offering solutions years away, having overseen a rise in power prices over the past year.

"You don't just go down to K-Mart and get a coal-fired power station off the shelf," Mr Shorten told reporters, admitting he had not read the ACCC report.

Energy Minister Josh Frydenberg said the recommendation to underwrite new power generators had a lot of merit, as it would address a market failure highlighted by AEMO warnings about reduced reserves.

"What they're saying is the government needs to step in here to provide some sort of assurance," Mr Frydenberg told 9NEWS today.

He said that could include coal, gas, renewable energy or battery storage.

Deputy Nationals leader Bridget McKenzie said science should determine which technology would get the best outcomes for power bills, with a scrapping coal report suggesting it can be costly.

Mr Turnbull said there was strong support for the vast majority of the ACCC's 56 recommendations, but the government would carefully consider the report, which sets out a blueprint to cut electricity bills by 25 percent.

Acting Greens leader Adam Bandt said Australia should exit coal-fired power in favour of renewable energy to cut pollution.

In contrast, Canada has seen the Stop the Shock campaign advocate a return to coal power in some provinces.

The Australian Energy Council, which represents 21 major energy companies, said the government should consult on changes to avoid "unintended consequences".

 

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San Diego Gas & Electric Orders Mitsubishi Power Emerald Storage Solution

SDG&E Mitsubishi Power Energy Storage adds a 10 MW/60 MWh BESS in Pala, boosting grid reliability, renewable integration, and flexibility with EMS and SCADA controls, LFP safety chemistry, NERC CIP compliance, UL 9540 standards.

 

Key Points

A 10 MW/60 MWh BESS for SDG&E in Pala that enhances grid reliability, renewables usage, and operational flexibility.

✅ Emerald EMS/SCADA meets NERC CIP, IEC/ISA 62443, NIST 800-53

✅ LFP chemistry with UL 9540 and UL 9540A safety compliance

✅ Adds capacity, energy, and ancillary services to CA grid

 

San Diego Gas & Electric Company (SDG&E), a regulated public utility that provides energy service to 3.7 million people, has awarded Mitsubishi Power an order for a 10 megawatt (MW) / 60 megawatt-hour (MWh) energy storage solution for its Pala-Gomez Creek Energy Storage Project in Pala, California. The battery energy storage system (BESS) will add capacity to help meet high energy demand, support grid reliability and operational flexibility, underscoring the broader benefits of energy storage now recognized by utilities, maximize use of renewable energy, and help prevent outages during peak demand.

The BESS project is Mitsubishi Power’s eighth in California, bringing total capacity to 280 MW / 1,140 MWh of storage to help meet California’s clean energy goals with reliable power to complement renewables, alongside emerging solutions like a California green hydrogen microgrid for added resilience.

Mitsubishi Power’s Emerald storage solution for SDG&E includes full turnkey design, engineering, procurement, and construction, as well as a 10-year long-term service agreement, aligning with CEC long-duration storage funding initiatives underway. It is scheduled to be online in early 2023.

The project will repower an existing energy storage site. It will employ Mitsubishi Power’s Emerald Integrated Plant Controller, which is an Energy Management System (EMS) and Supervisory Control and Data Acquisition (SCADA) system with real-time BESS operation and a monitoring/supervisory control platform. Mitsubishi Power leverages its decades of technology monitoring and diagnostics to turn data into actionable insights to maximize reliability, a priority as regions like Ontario increasingly rely on battery storage to meet rising demand. The Mitsubishi Power Emerald Integrated Plant Controller complies with North American Electric Reliability Corporation critical infrastructure protection (NERC CIP) standards and meets the highest security certification in the energy storage industry (IEC/ISA 62443, NIST 800-53) for maximum protection from cybersecurity risks and vulnerabilities.

For added physical safety, Mitsubishi Power’s solution employs lithium iron phosphate (LFP) battery chemistry, aligning with BESS adoption in New York where safety and performance are critical. Compared with other chemistries, LFP provides longer life and superior thermal stability and chemical stability, while meeting UL 9540 and UL 9540A safety standards.

Fernando Valero, Director, Advanced Clean Technology, SDG&E, said, “SDG&E is committed to achieving net-zero greenhouse gas emissions by 2045. We are increasing our portfolio of energy storage assets, including virtual power plant models, to reach this goal. These assets enhance grid reliability and operational flexibility while maximizing our use of abundant renewable energy sources in California.”

Tom Cornell, Senior Vice President, Energy Storage Solutions, Mitsubishi Power Americas, said, “As more and more renewables come online during the energy transition, BESS solutions are essential to support a reliable and stable grid. We look forward to providing SDG&E with our BESS solution to add capacity, energy, and ancillary services to California’s grid. Mitsubishi Power’s Emerald storage solutions are enabling a smarter and more resilient energy future for our customers in California and around the globe, with projects like an energy storage demonstration in India underscoring this momentum.”

 

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New York Finalizes Contracts for 23 Renewable Projects Totaling 2.3 GW

New York Renewable Energy Contracts secure 23 projects totaling 2.3 GW, spanning offshore wind, solar, and battery storage under CLCPA goals, advancing 70% by 2030, a carbon-free 2040 grid, grid reliability, and green jobs.

 

Key Points

State agreements securing 23 wind, solar, and storage projects (2.3 GW) to meet CLCPA clean power targets.

✅ 2.3 GW across 23 wind, solar, and storage projects statewide

✅ Supports 70% renewables by 2030; carbon-free grid by 2040

✅ Drives emissions cuts, grid reliability, and green jobs

 

In a significant milestone for the state’s clean energy ambitions, New York has finalized contracts with 23 renewable energy projects, as part of large-scale energy projects underway in New York, totaling a combined capacity of 2.3 gigawatts (GW). This move is part of the state’s ongoing efforts to accelerate its transition to renewable energy, reduce carbon emissions, and meet the ambitious targets set under the Climate Leadership and Community Protection Act (CLCPA), which aims to achieve a carbon-free electricity grid by 2040.

A Strong Commitment to Renewable Energy

The 23 projects secured under these contracts represent a diverse range of renewable energy sources, including wind, solar, and battery storage. Together, these projects are expected to contribute significantly to New York’s energy grid, generating enough clean electricity to power millions of homes. The deal is a key component of New York’s broader strategy to achieve a 70% renewable energy share in the state’s electricity mix by 2030 and to reduce greenhouse gas emissions by 85% by 2050.

Governor Kathy Hochul celebrated the agreements as a major step forward in the state’s commitment to combating climate change while creating green jobs and economic opportunities. “New York is leading the nation in its clean energy goals, and these projects will help us meet our bold climate targets while delivering reliable and affordable energy to New Yorkers,” Hochul said in a statement.

The Details of the Contracts

The 23 projects span across various regions of the state, with an emphasis on areas that are well-suited for renewable energy development, such as upstate New York, which boasts vast open spaces ideal for large-scale solar and wind installations and the state is investigating sites for offshore wind projects along the coast. The contracts finalized by the state will ensure a steady supply of clean power from these renewable sources, helping to stabilize the grid and reduce reliance on fossil fuels.

A significant portion of the new renewable capacity will come from offshore wind projects, which have become a cornerstone of New York’s renewable energy strategy. Offshore wind has the potential to provide large amounts of electricity, and the state recently greenlighted the country's biggest offshore wind farm to date, taking advantage of the state's proximity to the Atlantic Ocean. Several of the contracts finalized include offshore wind farm projects, which are expected to be operational within the next few years.

In addition to wind energy, solar power continues to be a critical component of the state’s renewable energy strategy. The state has already made substantial investments in solar energy, having achieved solar energy goals ahead of schedule recently, and these new contracts will further expand the state’s solar capacity. The inclusion of battery storage projects is another important element, as energy storage solutions are vital to ensuring that renewable energy can be effectively utilized, even when the sun isn’t shining or the wind isn’t blowing.

Economic and Job Creation Benefits

The finalization of these 23 contracts will not only bring significant environmental benefits but also create thousands of jobs in the renewable energy sector. Construction, maintenance, and operational jobs will be generated throughout the life of the projects, benefiting communities across the state, including areas near Long Island's South Shore wind proposals that stand to gain from new investment. The investment in renewable energy is expected to support New York’s recovery from the economic impacts of the COVID-19 pandemic, contributing to the state’s clean energy economy and providing long-term economic stability.

The state's focus on clean energy also provides opportunities for local businesses, highlighted by the first Clean Energy Community designation in the state, as many of these projects will require services and materials from within New York State. Additionally, Governor Hochul’s administration has made efforts to ensure that disadvantaged communities and workers from underrepresented backgrounds will have access to job training and employment opportunities within the renewable energy sector.

The Path Forward: A Clean Energy Future

New York’s aggressive move toward renewable energy is indicative of the state’s commitment to addressing climate change and leading the nation in clean energy innovation. By locking in contracts for these renewable energy projects, the state is not only securing a cleaner future but also ensuring that the transition is fair and just for all communities, particularly those that have been historically impacted by pollution and environmental degradation.

While the finalized contracts mark a major achievement, the state’s work is far from over. The completion of these 23 projects is just one piece of the puzzle in New York’s broader strategy to decarbonize its energy system. To meet its ambitious targets under the CLCPA, New York will need to continue investing in renewable energy, energy storage, grid modernization, and energy efficiency programs.

As New York moves forward with its clean energy transition, and as BOEM receives wind power lease requests in the Northeast, the state will likely continue to explore new technologies and innovative solutions to meet the growing demand for renewable energy. The success of the 23 finalized contracts serves as a reminder of the state’s leadership in the clean energy space and its ongoing efforts to create a sustainable, low-carbon future for all New Yorkers.

New York’s decision to finalize contracts with 23 renewable energy projects totaling 2.3 gigawatts represents a bold step toward meeting the state’s clean energy and climate goals. These projects, which include a mix of wind, solar, and energy storage, will contribute significantly to reducing the state’s reliance on fossil fuels and lowering greenhouse gas emissions. With the additional benefits of job creation and economic growth, this move positions New York as a leader in the nation’s transition to renewable energy and a sustainable future.

 

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PC Leader Doug Ford vows to fire Hydro One CEO, board if elected

Doug Ford's Hydro One firing vow targets CEO pay, the utility's board, and privatization, amid Ontario politics over electricity rates, governance, and control, raising questions about legal tools, contracts, and impacts on customers and taxpayers.

 

Key Points

Ford vows to oust Hydro One's CEO and board to curb pay and signal rate restraint, subject to legal and governance limits.

✅ Province lacks direct control post-privatization

✅ Possible board removals to influence executive pay

✅ Impact on rates, contracts, and shareholders unclear

 

Ontario PC Leader Doug Ford is vowing to fire the head of Hydro One, and its entire board if he's elected premier in June.

Ford made the announcement, calling President and CEO Mayo Schmidt, Premier "Kathleen Wynne's $6-Million dollar man," referring to his yearly salary and bonuses, which now add up to $6.2 million.

"This board and this CEO are laughing themselves to the bank," Ford said.

However, it's unclear how Ford would do that since the province does not control the company anymore.

"We don't have the ability to go out and say we are firing the CEO at Hydro One," PC energy critic Todd Smith said while speaking to reporters after Ford's remarks.

#google#

However, he said "we do have tools at our disposal in the tool box. The unfortunate thing is that Kathleen Wynne and the Liberals have just let those tools sit there for the last couple of years and [have] not taken action on things like this."

Smith declined to provide details about what those tools are, but suggested Ford would have the right to fire Hydro's board.

He said that would send a message "that we're not going to accept these salaries."

Smith says the Ontario gov still has the right to fire Hydro One board. What about their contracts? Pay them out? Smith says they don't know the details of people's contacts

We will not engage in politics,' Hydro One says

A Hydro One spokesperson said the amount customers pay to compensate the CEO's salary is the same as before privatization — two cents on each monthly bill.

"We will not engage in politics, however our customers deserve the facts," said the email statement to CBC Toronto.

"Nearly 80 per cent of the total executive compensation package is paid for by shareholders."

Ontario NDP MPP Peter Tabuns says Ford is pro-privatization, and that won't help those struggling with high hydro bills. (Michelle Siu/The Canadian Press)

Peter Tabuns, the NDP's energy critic, said his government would aim to retake public control of Hydro One to cap CEO pay and control the CEO's "outrageous salary."

But while he shares Ford's goal of cutting Schmidt's pay, Tabuns blasted what he believes would be the PC leader's approach.

"Doug Ford has no idea how to reign [sic] in the soaring hydro bills that Ontario families are facing — in fact, if his threats of further privatization include hydro, he'll drive bills and executive salaries ever higher," he said in an email statement.

The only plan we've heard from Doug Ford so far is firing people and laying off people.- Glenn Thibeault, Energy Minister

​Tabuns says his party would aim to cut hydro bills by 30 per cent.

Meanwhile, Liberal Energy Minister Glenn Thibeault said Ford's plan will do nothing to address the actual issue of keeping hydro rates low, comparing his statement Thursday to the rhetoric and actions of U.S. President Donald Trump.

"The only plan we've heard from Doug Ford so far is firing people and laying off people," Thibeault said.

"What I'm seeing a very strong prevalence to is the person running the White House. He's been doing a lot of firing as well and that's not been working out so well for them."

Wynne government has taken steps to cut hydro bills, including legislation to lower electricity rates in Ontario.

Hydro prices have shot up in recent years prompting criticism from across Ontario. Wynne made the controversial move of privatizing part of the utility beginning in 2015.

By Oct. 2017, the Ontario Liberal government's "Fair Hydro Plan" had brought down the average household electricity bill by a 25% rate cut from the peak it hit in the summer of 2016. The Wynne government has also committed to keep rate increases below inflation for the next four years, but admits bills will rise significantly in the decade that follows as a recovery rate could drive costs higher.

Ford blasted the government's moves during a Toronto news conference, echoing calls to scrap the Fair Hydro Plan and review other options.

"The party's over with the tax payer's money, we're going to start respecting the tax payers," Ford said, repeatedly saying the money spent on Hydro One salaries is "morally indefensible."

 

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Germany's Energy Crisis Deepens as Local Utilities Cry for Help

Germany energy liquidity crisis is straining municipal utilities as gas and power prices surge, margin calls rise, and Russian supply cuts bite, forcing state support, interventions, and emergency financing to stabilize households and businesses.

 

Key Points

A cash squeeze on German municipal utilities as soaring gas and power prices trigger margin calls and funding gaps.

✅ Margin calls and spot-market purchases strain cash flow

✅ State liquidity lines and EU collateral support proposed

✅ Gazprom cuts, Uniper distress heighten default risks

 

Germany’s fears that soaring power prices and gas prices could trigger a deeper crisis is starting to get real. 

Several hundred local utilities are coming under strain and need support, according to the head of Germany’s largest energy lobby group. The companies, generally owned by municipalities, supply households and small businesses directly and are a key part of the country’s power and gas network.

“The next step from the government and federal states must be to secure liquidity for these municipal companies,” Kerstin Andreae, chairwoman of the German Association of Energy and Water Industries, told Bloomberg in Berlin. “Prices are rising, and they have no more money to pay the suppliers. This is a big problem.”

Germany’s energy crunch intensified over the weekend after Russia’s Gazprom PJSC halted its key gas pipeline indefinitely, a stark wake-up call for policymakers to reduce fossil fuel dependence. European energy prices have surged again amid concerns over shortages this winter and fears of a worst-case energy scenario across the bloc. 

Many utilities are running into financial issues as they’re forced to cover missing Russian deliveries with expensive supplies on the spot market. German energy giant Uniper SE, which supplies local utilities, warned it will likely burn through a 7 billion-euro ($7 billion) government safety net and will need more help already this month.

Some German local utilities have already sought help, according to a government official, who asked not to be identified in line with briefing rules.  

With Europe’s largest economy already bracing for recession, Chancellor Olaf Scholz’s administration is battling on several fronts, testing the government’s financial capacity. The ruling coalition agreed Sunday on a relief plan worth about 65 billion euros -- part of an emerging energy shield package to contain the fallout of surging costs for households and businesses. 

Starting in October, local utilities will have to pay a levy for the gas acquired, which will further increase their financial burden, Andreae said.

Margin Calls
European gas prices are more than four times higher than usual for this time of year, underscoring why rolling back electricity prices is tougher than it appears for policymakers, as Russia cuts supplies in retaliation for sanctions related to its invasion of Ukraine. When prices peak, energy companies have to pay margin calls, extra collateral required to back their trades.

Read more: Energy Trade Risks Collapsing Over Margin Calls of $1.5 Trillion

The problem has hit local utilities in other countries as well. In Austria, the government approved a 2 billion-euro loan for Vienna’s municipal utility last month. 

The European Union is also planning help, floating gas price cap strategies among other tools. The bloc’s emergency measures will include support for electricity producers struggling to find enough cash to guarantee trades, according to European Commission President Ursula von der Leyen.

The situation has worsened in Germany as some of the country’s big gas importers are reluctant to sell more supplies to some of municipal companies amid fears they could default on payments, Andreae said. 

 

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