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China Energy Crisis drives electricity shortages, power cuts, and blackouts as coal prices surge, carbon-neutrality rules tighten, and manufacturing hubs ration energy, disrupting supply chains and industrial output ahead of winter demand peaks.

Key Points

A power shortfall from costly coal, price caps, and emissions targets, causing blackouts and industrial rationing.

✅ Coal prices soar while electricity tariffs are capped

✅ Factories in northeast hubs face rationing and downtime

✅ Supply chains risk delays ahead of winter demand

China is struggling with a severe shortage of electricity which has left millions of homes and businesses hit by power cuts.

Blackouts are not that unusual in the country but this year a number of factors have contributed to a perfect storm for electricity suppliers, including surging electricity demand globally.

The problem is particularly serious in China's north eastern industrial hubs as winter approaches - and is something that could have implications for the rest of the world.

Why has China been hit by power shortages?
The country has in the past struggled to balance electricity supplies with demand, which has often left many of China's provinces at risk of power outages.

During times of peak power consumption in the summer and winter the problem becomes particularly acute.

But this year a number of factors have come together to make the issue especially serious.

As the world starts to reopen after the pandemic, demand for Chinese goods is surging and the factories making them need a lot more power, highlighting China's electricity appetite in recent months.

Rules imposed by Beijing as it attempts to make the country carbon neutral by 2060 have seen coal production slow, even as the country still relies on coal for more than half of its power and as low-emissions generation is set to cover most global demand growth.

And as electricity demand has risen, the price of coal has been pushed up.

But with the government strictly controlling electricity prices, coal-fired power plants are unwilling to operate at a loss, with many drastically reducing their output instead.

Who is being affected by the blackouts?
Homes and businesses have been affected by power cuts as electricity has been rationed in several provinces and regions.

A coal-burning power plant can be seen behind a factory in China"s Inner Mongolia Autonomous Region

The state-run Global Times newspaper said there had been outages in four provinces - Guangdong in the south and Heilongjiang, Jilin and Liaoning in the north east. There are also reports of power cuts in other parts of the country.

Companies in major manufacturing areas have been called on to reduce energy usage during periods of peak demand or limit the number of days that they operate.

Energy-intensive industries such as steel-making, aluminium smelting, cement manufacturing and fertiliser production are among the businesses hardest hit by the outages.

What has the impact been on China's economy?
Official figures have shown that in September 2021, Chinese factory activity shrunk to the lowest it had been since February 2020, when power demand dropped as coronavirus lockdowns crippled the economy.

Concerns over the power cuts have contributed to global investment banks cutting their forecasts for the country's economic growth.

Goldman Sachs has estimated that as much as 44% of the country's industrial activity has been affected by power shortages. It now expects the world's second largest economy to expand by 7.8% this year, down from its previous prediction of 8.2%.

Globally, the outages could affect supply chains, including solar supply chains as the end-of-the-year shopping season approaches.

Since economies have reopened, retailers around the world have already been facing widespread disruption amid a surge in demand for imports.

China's economic planner, the National Development and Reform Commission (NDRC), has outlined a number of measures to resolve the problem, with energy supplies in the northeast of the country as its main priority this winter.

The measures include working closely with generating firms to increase output, ensuring full supplies of coal and promoting the rationing of electricity.

The China Electricity Council, which represents generating firms, has also said that coal-fired power companies were now "expanding their procurement channels at any cost" in order to guarantee winter heat and electricity supplies.

However, finding new sources of coal imports may not be straightforward.

Russia is already focused on its customers in Europe, Indonesian output has been hit by heavy rains and nearby Mongolia is facing a shortage of road haulage capacity,

Are energy shortages around the world connected?
Power cuts in China, UK petrol stations running out of fuel, energy bills jumping in Europe, near-blackouts in Japan and soaring crude oil, natural gas and coal prices on wholesale markets - it would be tempting to assume the world is suddenly in the grip of a global energy drought.

However, it is not quite as simple as that - there are some distinctly different issues around the world.

For example, in the UK petrol stations have run dry as motorists rushed to fill up their vehicles over concerns that a shortage of tanker drivers would mean fuel would soon become scarce.

Meanwhile, mainland Europe's rising energy bills and record electricity prices are due to a number of local factors, including low stockpiles of natural gas, weak output from the region's windmills and solar farms and maintenance work that has put generating operations out of action.
 

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Ukraine Energy Grid Attacks intensify as missile strikes and drone raids hit power plants, substations, and transmission lines, causing blackouts, disrupted logistics, and humanitarian strain during winter, despite repairs, air defense, and allied aid.

Key Points

Missile and drone strikes on Ukraine's power grid to force blackouts, strain civilians, and disrupt military logistics.

✅ Targets: power plants, substations, transmission lines

✅ Impacts: blackouts, heating loss, hospital strain

✅ Goals: erode morale, disrupt logistics, force aid burdens

Russia’s continued strikes on Ukraine have taken a severe toll on the country’s critical infrastructure, particularly its energy grid, as Ukraine continues to keep the lights on despite sustained bombardment. In recent months, Western Ukraine has increasingly become a target of missile and drone attacks, leading to widespread power outages and compounding the challenges faced by the civilian population. These strikes aim to cripple Ukraine's resilience during a harsh winter season and disrupt its wartime operations.

Targeting Energy Infrastructure

Russian missile and drone assaults on Ukraine’s energy grid are part of a broader strategy to weaken the country’s morale and capacity to sustain the war effort. The attacks have primarily focused on power plants, transmission lines, and substations. Western Ukraine, previously considered a relative safe haven due to its distance from front-line combat zones, is now experiencing the brunt of this campaign.

The consequences of these strikes are severe. Rolling blackouts and unplanned outages have disrupted daily life for millions of Ukrainians, though authorities say there are electricity reserves that could stabilize supply if no new strikes occur, leaving homes without heating during freezing temperatures, hospitals operating on emergency power, and businesses struggling to maintain operations. The infrastructure damage has also affected water supplies and public transportation, further straining civilian life.

Aimed at Civilian and Military Impact

Russia’s targeting of Ukraine’s power grid has dual purposes. On one hand, it aims to undermine civilian morale by creating hardships during the cold winter months, even as Ukraine works to keep the lights on this winter through contingency measures. On the other, it seeks to hinder Ukraine’s military logistics and operations, which heavily rely on a stable energy supply for transportation, communications, and manufacturing of military equipment.

These attacks coincide with a broader strategy of attritional warfare, where Moscow hopes to exhaust Ukraine’s resources and diminish its ability to continue its counteroffensive operations. By disrupting critical infrastructure, Russia increases pressure on Ukraine's allies to step up humanitarian and military aid, stretching their capacities.

Humanitarian Consequences

The impact of these power cuts on the civilian population is profound. Millions of Ukrainians are enduring freezing temperatures without consistent access to electricity or heating. Vulnerable populations, such as the elderly, children, and those with disabilities, face heightened risks of hypothermia and other health issues.

Hospitals and healthcare facilities are under immense strain, relying on backup generators that cannot sustain prolonged use. In rural areas, where infrastructure is already weaker, the effects are even more pronounced, leaving many communities isolated and unable to access essential services.

Humanitarian organizations have ramped up efforts to provide aid, including distributing generators, warm clothing, and food supplies, while many households pursue new energy solutions to weather blackouts. However, the scale of the crisis often outpaces the resources available, leaving many Ukrainians to rely on their resilience and community networks.

Ukraine's Response

Despite the challenges, Ukraine has demonstrated remarkable resilience in the face of these attacks. The government and utility companies are working around the clock to repair damaged infrastructure and restore power to affected areas. Mobile repair teams and international assistance have played crucial roles in mitigating the impact of these strikes.

Ukraine’s Western allies have also stepped in to provide support. The European Union, the United States, and other countries have supplied Ukraine with energy equipment, financial aid, and technical expertise to help rebuild its energy grid, though recent decisions like the U.S. ending support for grid restoration complicate planning and procurement. Additionally, advanced air defense systems provided by Western nations have helped intercept some of the incoming missiles and drones, though not all attacks can be thwarted.

Russia’s Escalation Strategy

Russia’s focus on Western Ukraine reflects a shift in its strategy. Previously, attacks were concentrated on front-line areas and major urban centers in the east and south. However, by targeting the western regions, Moscow seeks to disrupt the relatively stable zones where displaced Ukrainians and critical supply chains are located.

Western Ukraine is also a hub for receiving and distributing international aid and military supplies. Striking this region not only undermines Ukraine’s internal stability but also sends a message to its allies about Russia’s willingness to escalate the conflict further.

Broader Implications

The attacks on Ukraine’s energy grid have broader geopolitical implications. By targeting infrastructure, Russia intensifies the pressure on Ukraine’s allies to continue providing support, even as Kyiv has at times helped Spain amid blackouts when capacity allowed, testing their unity and resolve. The destruction also poses long-term challenges for Ukraine’s post-war recovery, as rebuilding a modern and resilient energy system will require significant investments and time.

Moreover, these attacks highlight the vulnerability of civilian infrastructure in modern warfare, echoing that electricity is civilization amid winter conditions. The deliberate targeting of non-combatant assets underscores the need for international efforts to strengthen the protection of critical infrastructure and address the humanitarian consequences of such tactics.

The Russian attacks on Western Ukraine's power grid are a stark reminder of the devastating human and economic costs of the ongoing conflict. While Ukraine continues to demonstrate resilience and adaptability, the scale of destruction underscores the need for sustained international support. As the war drags on, the focus must remain on mitigating civilian suffering, rebuilding critical infrastructure, and pursuing a resolution that ends the violence and stabilizes the region.

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Extreme Heat and Rising Electricity Bills amplify energy costs as climate change drives air conditioning demand, stressing the power grid and energy affordability, with low income households facing outsized burdens during prolonged heat waves.

Key Points

Heat waves from climate change raise AC demand, driving up electricity costs and straining energy affordability.

✅ More AC use spikes electricity demand during heat waves

✅ Low income households face higher energy burden

✅ Grid reliability risks rise with peak cooling loads

Extreme heat waves are not only straining public health systems but also having a significant impact on household finances, particularly through rising electricity bills. According to a recent AP-NORC poll, a growing number of Americans are feeling the financial pinch as soaring temperatures drive up the cost of cooling their homes. This development underscores the broader implications of climate change and its effects on everyday life.

The AP-NORC poll highlights that a majority of Americans are experiencing increased electricity costs as a direct result of extreme heat. As temperatures climb, so does the demand for air conditioning and other cooling systems. This increased energy consumption is contributing to higher utility bills, which can put additional strain on household budgets.

Extreme heat waves have become more frequent and intense due to climate change, which has led to a greater reliance on air conditioning to maintain comfortable indoor environments. Air conditioners and fans work harder during heat waves, and wasteful air conditioning can add around $200 to summer bills, consuming more electricity and consequently driving up energy bills. For many households, particularly those with lower incomes, these increased costs can be a significant burden.

The poll reveals that the impact of rising electricity bills is widespread, affecting a diverse range of Americans. Households across different income levels and geographic regions are feeling the heat, though the extent of the financial strain can vary. Lower-income households are particularly vulnerable, as they often have less flexibility in their budgets to absorb higher utility costs. For these families, the choice between cooling their homes and other essential expenses can be a difficult one.

In addition to financial strain, the poll highlights concerns about energy affordability and access. As electricity bills rise, some Americans may face challenges in paying their bills, leading to potential utility shut-offs or the need to make difficult choices between cooling and other necessities. This situation is exacerbated by the fact that many utility companies do not offer sufficient assistance or relief programs to help low-income households manage their energy costs.

The increasing frequency of extreme heat events and the resulting spike in electricity consumption also have broader implications for the energy infrastructure. Higher demand for electricity can strain power grids, as seen when California narrowly avoided blackouts during extreme heat, potentially leading to outages or reduced reliability. Utilities and energy providers may need to invest in infrastructure upgrades and maintenance to ensure that the grid can handle the increased load during heat waves.

Climate change is a key driver of the rising temperatures that contribute to higher electricity bills. As global temperatures continue to rise, extreme heat events are expected to become more common and severe, and experts warn the US electric grid was not designed to withstand these impacts. This trend underscores the need for comprehensive strategies to address both the causes and consequences of climate change. Efforts to reduce greenhouse gas emissions, improve energy efficiency, and invest in renewable energy sources are critical components of a broader climate action plan.

Energy efficiency measures can play a significant role in mitigating the impact of extreme heat on electricity bills. Upgrading to more efficient cooling systems, improving home insulation, and adopting smart thermostats can help reduce energy consumption and lower utility costs. Additionally, utility companies and government programs can offer incentives and rebates, including ways to tap new funding that help encourage energy-saving practices and support households in managing their energy use.

The poll also suggests that there is a growing awareness among Americans about the connection between climate change and rising energy costs. Many people are becoming more informed about the ways in which extreme weather events and rising temperatures impact their daily lives. This increased awareness can drive demand for policy changes and support for initiatives aimed at addressing climate change and improving energy efficiency, with many willing to contribute income to climate efforts, about the connection between climate change and rising energy costs.

In response to the rising costs and the impact of extreme heat, there are calls for policy interventions and support programs to help manage energy affordability. Proposals include expanding assistance programs for low-income households, investing in infrastructure improvements, and promoting energy efficiency initiatives alongside steps to make electricity systems more resilient to climate risks. By addressing these issues, policymakers can help alleviate the financial burden on households and support a more resilient and sustainable energy system.

Debates over policy impacts on electricity prices continue; in Alberta, federal policies are blamed by some for higher rates, illustrating how regulation can affect affordability.

In conclusion, the AP-NORC poll highlights the growing financial impact of extreme heat on American households, with rising electricity bills being a significant concern for many. The increased demand for cooling during heat waves is straining household budgets and raising broader questions about energy affordability and infrastructure resilience. Addressing these challenges requires a multifaceted approach, including efforts to combat climate change, improve energy efficiency, and provide support for those most affected by rising energy costs. As extreme heat events become more common, finding solutions to manage their impact will be crucial for both individual households and the broader energy system.

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Yukon Renewable Energy Funding backs wind turbines, grid-scale battery storage, and transmission line upgrades, cutting diesel dependence, lowering greenhouse gas emissions, and strengthening Yukon Energy's isolated grid for remote communities, local jobs, and future growth.

Key Points

Federal support for Yukon projects adding wind, battery storage, and grid upgrades to cut diesel use and emissions.

✅ Three 100 kW wind turbines will power Destruction Bay.

✅ 8 MW battery storage smooths peaks and reduces diesel.

✅ Mayo-McQuesten 138 kV line upgrade boosts reliability.

Kluane First Nation in Yukon will receive a total of $3.1 million in funding from the federal government to install and operate wind turbines that will help reduce the community’s diesel reliance.

According to a release, the community will integrate three 100-kilowatt turbines in Destruction Bay, Yukon, providing a renewable energy source for their local power grid that will reduce greenhouse gas emissions and create local jobs in the community.

A $2-million investment from Natural Resources Canada came from the Clean Energy for Rural and Remote Communities Program, part of the Government of Canada’s Investing in Canada infrastructure plan, which supports green energy solutions across jurisdictions. Crown-Indigenous Relations’ and Northern Affairs Canada also contributed a $1.1-million investment from the Northern REACHE Program.

Also, the Government of Canada announced more than $39.2 million in funding for two Yukon Energy projects that will increase the reliability of Yukon’s electrical grid, including exploration of a potential connection to the B.C. grid to bolster resiliency, and help build the robust energy system needed to support future growth. The investment comes from the government’s Green Infrastructure Stream (GIS) of the Investing in Canada infrastructure plan.

Project 1: Grid-scale battery storage

The federal government is investing $16.5 million in Yukon Energy’s construction of a new battery storage system in Yukon. Once completed, the 8 MW battery will be the largest grid-connected battery in the North, and one of the largest in Canada, alongside major Ontario battery projects underway.

The new battery is a critical investment in Yukon Energy’s ability to meet growing demands for power and securing Yukon’s energy future. As an isolated grid, one of the largest challenges Yukon Energy faces is meeting peak demands for power during winter months, as electrification grows with EV adoption in the N.W.T. and beyond.

When complete, the new system will store excess electricity generated during off-peak periods, complementing emerging vehicle-to-grid integration approaches, and provide Yukoners with access to more power during peak periods. This new energy storage system will create a more reliable power supply and help reduce the territory’s reliance on diesel fuel. Over the 20-year life of project, the new battery is expected to reduce carbon emissions in Yukon by more than 20,000 tonnes.

A location for the new battery energy storage system has not been identified. Yukon Energy will begin permitting of the project in 2020 with construction targeted to be complete by mid-2023.

Project 2: Replacing and upgrading the Mayo to McQuesten Transmission Line

Yukon Energy has received $22.7 million in federal funding to proceed with Stage 1 of the Stewart to Keno City Transmission Project – replacing and upgrading the 65 year-old transmission line between Mayo and McQuesten. The project also includes the addition of system protection equipment at the Stewart Crossing South substation. The Yukon government, through the Yukon Development Corporation, has already provided $3.5 million towards planning for the project.

Replacing the Mayo to McQuesten transmission line is critical to Yukon Energy’s ability to deliver safe and reliable electricity to customers in the Mayo and Keno regions, mirroring broader regional transmission initiatives that enhance grid resilience, and to support economic growth in Yukon. The transmission line has reached end-of-life and become increasingly unreliable for customers in the area.

The First Nation of Na-Cho Nyak Dun has expressed their support of this project. The project has also been approved by the Yukon Environmental and Socio-Economic Assessment Board.

Yukon Energy will begin replacing and upgrading the 31 km transmission line between Mayo and McQuesten in 2020. Construction is expected to be complete in late 2020. When finished, the new 138 kV transmission line will provide more reliable electricity to customers in the Mayo and Keno regions and be equipped to support industrial growth and development in the area, including the Victoria Gold Mine, with renewable power from the Yukon grid.

Planning work for the remainder of the Stewart to Keno City Transmission Project has been completed. Yukon Energy continues to explore funding opportunities that are needed to proceed with other stages of the project.

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France Diesel Prices at Pre-Ukraine Levels reflect energy market stabilization as supply chains adapt and subsidies help; easing fuel costs, inflation, and logistics burdens for households, transport firms, and the wider economy.

Key Points

They mark normalization as oil supply stabilizes, easing fuel costs and logistics expenses for consumers and firms.

✅ Lower transport and logistics operating costs

✅ Softer inflation and improved household budgets

✅ Market stabilization amid adjusted oil supply chains

In a significant development for French consumers and businesses alike, diesel prices in France have recently fallen back to levels last seen before the Ukrainian conflict began, mirroring European gas prices returning to pre-war levels across the region. This drop comes as a relief to many who have been grappling with volatile energy costs and their impact on the cost of living and business operations. The return to lower diesel prices is a noteworthy shift in the energy landscape, with implications for the French economy, transportation sector, and broader European market.

Context of Rising Diesel Prices

The onset of the Ukrainian conflict in early 2022 triggered a dramatic increase in global energy prices, including diesel. The conflict's disruption of supply chains, coupled with sanctions on Russian oil and gas exports, contributed to a steep rise in fuel prices across Europe, prompting the EU to weigh emergency electricity price measures to shield consumers. For France, this meant that diesel prices soared to unprecedented levels, putting significant pressure on consumers and businesses that rely heavily on diesel for transportation and logistics.

The impact was felt across various sectors. Transportation companies faced higher operational costs, which were often passed down to consumers in the form of increased prices for goods and services. Additionally, higher fuel costs contributed to broader inflationary pressures, with EU inflation hitting lower-income households hardest, affecting household budgets and overall economic stability.

Recent Price Trends and Market Adjustments

The recent decline in diesel prices in France is a welcome reversal from the peak levels experienced during the height of the conflict. Several factors have contributed to this price reduction. Firstly, there has been a stabilization of global oil markets as geopolitical tensions have somewhat eased and supply chains have adjusted to new realities. The gradual return of Russian oil to global markets, albeit under complex sanctions and trading arrangements, has also played a role in moderating prices.

Moreover, France's strategic reserves and diversified energy sources have helped cushion the impact of global price fluctuations. The French government has also implemented measures to stabilize energy prices, including subsidies and tax adjustments, and a new electricity pricing scheme to satisfy EU concerns, which have helped alleviate some of the financial pressure on consumers.

Implications for the French Economy

The return to pre-conflict diesel price levels brings several positive implications for the French economy. For consumers, the decrease in fuel prices means lower transportation costs, which can ease inflationary pressures and improve disposable income, and, alongside the EDF electricity price deal, reduce overall utility burdens for households. This is particularly beneficial for households with long commutes or those relying on diesel-powered vehicles.

For businesses, especially those in the transportation and logistics sectors, the drop in diesel prices translates into reduced operational costs. This can help lower the cost of goods and services, potentially leading to lower prices for consumers and improved profitability for businesses. In a broader sense, stabilized fuel prices can contribute to overall economic stability and growth, as lower energy costs can support consumer spending and business investment.

Environmental and Policy Considerations

While the decrease in diesel prices is advantageous in the short term, it also raises questions about long-term energy policy and environmental impact, with the recent crisis framed as a wake-up call for Europe to accelerate the shift away from fossil fuels. Diesel, as a fossil fuel, continues to pose environmental challenges, including greenhouse gas emissions and air pollution. The drop in prices might inadvertently discourage investments in cleaner energy alternatives, such as electric and hybrid vehicles, which are crucial for achieving long-term sustainability goals.

In response, there is a growing call for continued investment in renewable energy and energy efficiency measures. France has been actively pursuing policies to reduce its reliance on fossil fuels and increase the adoption of cleaner technologies, amid ongoing EU electricity reform debates with Germany. The government’s support for green energy initiatives and incentives for low-emission vehicles will be essential in balancing short-term benefits with long-term environmental objectives.

Conclusion

The recent return of French diesel prices to pre-Ukrainian conflict levels marks a significant shift in the energy market, offering relief to both consumers and businesses. While this decline brings immediate financial benefits and supports economic stability, it also underscores the ongoing need for a strategic approach to energy policy and environmental sustainability. As France navigates the evolving energy landscape, the focus will need to remain on fostering a transition towards cleaner energy sources while managing the economic and environmental impacts of fuel price fluctuations.

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Goreway Power Station Overbilling exposed by Ontario Energy Board shows IESO oversight failures, GCG gaming, and $100M in inappropriate payments at the Brampton natural gas plant, penalized with fines and repayments impacting Ontario ratepayers.

Key Points

Goreway exploited IESO GCG flaws, causing about $100M in improper payouts and fines.

✅ OEB probe flagged $89M in ineligible start-up O&M charges

✅ IESO fined Goreway $10M; majority of excess costs recovered

✅ Audit found $200M in overbilling across nine generators

Hydro customers shelled out about $100 million in "inappropriate" payments to a natural gas plant that exploited flaws in how Ontario manages its private electricity generators, according to the Ontario Energy Board.

The company operating the Goreway Power Station in Brampton "gamed" the system for at least three years, according to an investigation by the provincial energy regulator. 

The investigation also delivers stinging criticism of the provincial government's Independent Electricity System Operator (IESO), slamming it for a lack of oversight. The probe by the Ontario Energy Board's market surveillance panel was completed nearly a year ago, but was only made public in November because it was buried on its website without a news release. CBC News is the first media outlet to report on the investigation.  

The excess payments to Goreway Power Station included:

• $89 million in ineligible expenses billed as the costs of firing up power production. 
• $5.6 million paid in three months from a flaw in how IESO calculated top-ups for the company committing to generate power a day in advance.   
• Of $11.2 million paid to compensate the company for IESO ordering it to start or stop generating power, the investigation concluded "a substantial portion ... was the result of gaming."  

Most privately-owned natural gas-fired plants in the province do not generate electricity constantly, but start and stop production in response to fluctuating market demand, even as the energy minister has requested an halt to natural gas generation across the grid.  IESO pays them a premium for the costs of firing up production, through what it calls "generation cost guarantee" programs. 

But the investigation found IESO did little checking into the details of Goreway Power Station's billings. 

Goreway Power Station, located near Highway 407 in Brampton, Ont., is an 875 megawatt natural gas power plant. (Goreway)

"Conservatively, at least $89 million of Goreway's submissions were clearly ineligible by any reasonable measure," concludes the report.

"Goreway routinely submitted what were obviously inappropriate expenses to be reimbursed by the IESO, and ultimately borne by Ontario ratepayers,"

The investigation panel found an "extraordinary pattern" to these billings by Goreway Power Station, suggesting the IESO should have caught on sooner. The company submitted more than $100 million in start-up operating and maintenance costs during the three-year period investigated — more than all other gas-fired generators in the province combined. The company's costs per start-up were more than double the next most expensive power generator. 

"Goreway repeatedly exploited defects in the GCG (generation cost guarantee) program, and in doing so received at least $89 million in gamed GCG payments." 

Company fined $10M

The investigation covered a three-year period from when Goreway Power Station began generating power in June 2009. Investigators said that delays in releasing documents slowed down their probe, and they only obtained all the records they needed in April 2016.

The investigating panel does not have the power to impose penalties on companies it found broke the rules. 

The IESO fined Goreway Power Station $10 million. The company has also repaid IESO "a substantial portion" of the excess payments it received during its first six years of operating, but the exact figure is blacked out in the investigation report that was made public. 

The control room from which the provincial government's Independent Electricity System Operator manages Ontario's power supply. The agency is also responsible for managing contracts with private power producers.(IESO)

"Goreway does not agree with many of the draft report's findings and conclusions, including any suggestion that Goreway engaged in gaming or that it deliberately misled the IESO," writes lawyer George Vegh on behalf of the company in a response to the investigation report, dated Aug. 1.

"Goreway has implemented initiatives designed to ensure that compliance is a chief operating principle."     

The power station, located near Highway 407 in Brampton, is a joint venture between Toyota Tsusho Corp. and JERA Co. Inc. During the period under scrutiny, the project was run by Toyota Tsusho and Chubu Electric Power Inc., both headquartered in Japan. 

Investigators fear 'same situation' exists today

The report blames the provincially-controlled IESO for creating a system with defects that allowed the over-billing. 

"Goreway was able to — and repeatedly did — exploit these defects," says the investigation report. It goes on to explain the flaws "have created opportunities for exploitation, to the serious financial disadvantage of Ontario's ratepayers," even as greening Ontario's grid could entail massive costs.

The investigation suggests IESO hasn't made adequate changes to ensure it won't happen again, at a time when an analysis of a dirtier grid is raising concerns.   

"Goreway stands as a clear example of how generators are able to exploit the generation costs guarantee regime," says the report.

"The Panel is concerned that the same situation remains in place today." 

PC energy critic Todd Smith raised CBC News' report on the Goreway Power Station in Tuesday's question period. (Ontario Legislature)

After CBC News broke the story Tuesday, the provincial government was forced to respond in question period, amid a broader push for new gas plants to boost electricity production. 

"Here we have yet another gas plant scandal in Peel region that's costing electricity customers over $100 million," said PC energy critic Todd Smith. He slammed "the incompetence of a government that once again failed to look out for electricity customers." 

Economic Development Minister Brad Duguid said: "There is no excuse for any company in this province to ever game the system."

Nine companies overbilled $200M: audit 

The IESO found out about the overbilling "some time ago," said Duguid.

"They fully investigated, they've recovered most of the cost, they delivered a $10 million fine — the biggest fine on record."

The program that Goreway exploited became the subject of an audit that the IESO launched in 2011. The agency uncovered $200 million in ineligible billings by nine power producers, wrote the IESO vice president for policy Terry Young in an email to CBC News.

The IESO has recovered up to 85 per cent of those ineligible costs, Young noted.

Reforms to the design of the the program have removed the potential for overpayments and made it more efficient, he said, even as Ontario weighs embracing clean power more broadly. Last year, its total annual costs dropped to $23 million, down from $61 million in 2014.

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