Doubts about Brazilian grid linger

Hydro One CEO Salary shapes debate on Ontario electricity costs, executive compensation, sunshine list transparency, and public disclosure rules, as officials argue pay is not driving planned hydro rate cuts for consumers.

Key Points

Hydro One CEO pay disclosed in public filings, central to debates on Ontario electricity rates and transparency.

✅ 2016 compensation: $4.5M (salary + bonuses)

✅ Excluded from Ontario's sunshine list after privatization

✅ Government says pay won't affect planned hydro rate cuts

The $4.5 million in pay received by Hydro One's CEO is not a factor in the government's plan to cut electricity costs for consumers, an Ontario cabinet minister said Thursday amid opposition concerns about the executive's compensation and wider sector pressures such as Manitoba Hydro's rising debt in other provinces.

Treasury Board President Liz Sandals made her comments on the eve of the release of the province's so-called sunshine list.

The annual disclosure of public-sector salaries over $100,000 will be released Friday, but Hydro One salaries such as that of company boss Mayo Schmidt won't be on it.Though the government still owns most of Hydro One — 30 per cent has been sold — the company is required to follow the financial disclosure rules of publicly traded companies, which means disclosing the salaries of its CEO, CFO and next three highest-paid executives, and financial results such as a Q2 profit decline in filings.

New filings show that Schmidt was paid $4.5 million in 2016 — an $850,000 salary plus bonuses — and those top five executives were paid a total of about $11.7 million. 

"Clearly that's a very large amount," said Sandals. Sandals wouldn't say whether or not she thought the pay was appropriate at a time when the government is trying to reduce system costs and cut people's hydro bills.

Mayo Schmidt, President & CEO of Hydro One Limited and Hydro One Inc. (Hydro One )

But she suggested the CEO's salary was not a factor in efforts to bring down hydro prices, even as Hydro One shares fell after a leadership shakeup in a later period. "The CEO salary is not part of the equation of will 'we be able to make the cut,"' she said. "Regardless of what those salaries are, we will make a 25-per-cent-off cut." The cut coming this summer is actually an average of 17 per cent -- the 25-per-cent figure factors in an earlier eight-per-cent rebate.

NDP Leader Andrea Horwath, who has proposed to make hydro public again in Ontario, said the executive salaries are relevant to cutting hydro costs.

"All of this is cost of operating the electricity system, it's part of the operating of Hydro One and so of course those increased salaries are going to impact the cost of our electricity," she said.

Schmidt was appointed Aug. 31, 2015, and in the last four months of that year earned $1.3 million, but the former CEO was paid $745,000 in 2014. About 3,800 workers were paid over $100,000 that year, none of whom will be on the sunshine list this year.

Progressive Conservative energy critic Todd Smith has a private member's bill that would put Hydro One salaries back on the list, amid investor concerns about Hydro One that cite too many unknowns.

"The Wynne Liberals don't want the people of Ontario to know that their rates have helped create a new millionaire's club at Hydro One," Smith said. "Hydro One is still under the majority ownership of the public, but Premier Kathleen Wynne has removed these salaries from the public's watchful eye."

The previous sunshine list showed 115,431 people were earning more than $100,000 — an increase of nearly 4,000 people despite the fact 3,774 Hydro One workers were not on the list for the first time.

Tom Mitchell, the former CEO at Ontario Power Generation who resigned last summer, topped the 2015 list at $1.59 million.

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Paris E-Scooter Ban: Voters back ending rental scooters after a public consultation, citing road safety, pedestrian clutter, and urban mobility concerns; impacts Lime, Dott, and Tier operations across the capital.

Key Points

A citywide prohibition on rental e-scooters, approved by voters, to improve safety, order, and walkability.

✅ Non-binding vote shows about 90% support citywide.

✅ About 15,000 rental scooters from Lime, Dott, Tier affected.

✅ Cites 2022 injuries, fatalities, and sidewalk clutter.

Parisians have voted to rid the streets of the French capital of rental electric scooters, with an overwhelming 90% of votes cast supporting a ban, official results show, amid a wider debate over the limits of the electric-car revolution and its real-world impact.

Paris was a pioneer when it introduced e-scooters, or trottinettes, in 2018 as the city’s authorities sought to promote non-polluting forms of urban transport, amid record EV adoption in France across the country.

But as the two-wheeled vehicles grew in popularity, especially among young people, and, with similar safety concerns prompting the TTC winter ban on lithium-ion e-bikes and scooters in Toronto, so did the number of accidents: in 2022, three people died and 459 were injured in e-scooter accidents in Paris.

In what was billed as a “public consultation” voters were asked: “For or against self-service scooters?”

Twenty-one polling stations were set up across the city and were open until 7pm local time. Although 1.6 million people are eligible to vote, turnout is expected to be low.

The ban won between 85.77% and 91.77% of the votes in the 20 Paris districts that published results, according to the City of Paris website on what was billed as a rare “public consultation” and prompted long queues at ballot boxes around the city. The vote was non-binding but city authorities have vowed to follow the result, echoing Britain's transport rethink that questions simple fixes.

Paris’s socialist mayor, Anne Hidalgo, has promoted cycling and bike-sharing but supported a ban on e-scooters, as France rolls out new EV incentive rules affecting Chinese manufacturers.

In an interview with Agence France-Presses last week, Hidalgo said “self-service scooters are the source of tension and worry” for Parisians and that a ban would “reduce nuisance” in public spaces, with broader benefits for air quality noted in EV use linked to fewer asthma ER visits in recent studies as well.

Paris has almost 15,000 e-scooters across its streets, operated by companies including Lime, Dott and Tier. Detractors argue that e-scooter users disrespect the rules of the road and regularly flout a ban on riding on pavements, even as France moves to discourage Chinese EV purchases to shape the broader mobility market. The vehicles are also often haphazardly parked or thrown into the River Seine.

In June 2021, a 31-year-old Italian woman was killed after being hit by an e-scooter with two passengers onboard while walking along the Seine.

“Scooters have become my biggest enemy. I’m scared of them,” Suzon Lambert, a 50-year-old teacher from Paris, told AFP. “Paris has become a sort of anarchy. There’s no space any more for pedestrians.”

Another Parisian told BFMTV: “It’s dangerous, and people use them badly. I’m fed up.”

Julian Sezgin, aged 15, said he often saw groups of two or three teenagers on e-scooters zooming past cars on busy roads. “I avoid going on e-scooters and prefer e-bikes as, in my opinion, they are safer and more efficient,” he told the Guardian.

Bianca Sclavi, an Italian who has lived in Paris for years, said the scooters go “too fast” and should be mechanically limited so they go slower. “They are dangerous because they zip in and out of traffic,” she said. “However, it is not as bad as when they first arrived … the most dangerous are the drunk tourists!”

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Demand Flexibility Service rewards households and businesses for shifting peak-time electricity use, enhancing grid balancing, energy security, and net zero goals with ESO and Ofgem support, virtual power plants, and 2GW capacity this winter.

Key Points

A grid program paying homes and businesses to shift peak demand, boosting energy security and lowering winter costs.

✅ Pays £3,000/MWh for reduced peak-time usage

✅ Targets at least 2GW via virtual power plants

✅ Rolled out by suppliers with Ofgem and ESO

This month we published our analysis of the British electricity system this winter. Our message is clear: in the base case our analysis indicates that supply margins are expected to be adequate, however this winter will undoubtedly be challenging, with high winter energy costs adding pressure. Therefore, all of us in the electricity system operator (ESO) are working round the clock to manage the system, ensure the flow of energy and do our bit to keep costs down for consumers.

One of the tools we have developed is the demand flexibility service, designed to complement efforts to end the link between gas and electricity prices and reduce bills. From November, this new capability will reward homes and businesses for shifting their electricity consumption at peak times. And we are working with the government, businesses and energy providers to encourage as high a level of take-up as possible. We are confident this innovative approach can provide at least 2 gigawatts of power – about a million homes’ worth.

What began as an initiative to help achieve net zero and keep costs down is also proving to be an important tool in ensuring Britain’s energy security, alongside the Energy Security Bill progressing into law.

We are particularly keen to get businesses involved right across Britain. When the Guardian first reported on this service we had calls from businesses ranging from multinationals to an owner of a fish and chip shop asking how they could do their bit and get signed up.

We can now confirm our proposals for how much people and businesses can be paid for shifting their electricity use outside peak times. We anticipate paying a rate of £3,000 per megawatt hour, reflecting the dynamics of UK natural gas and electricity markets today. Businesses and homes can become virtual power plants and, crucially, get paid like one too. For a consumer that could mean a typical household could save approximately £100, and industrial and commercial businesses with larger energy usage could save multiples of this.

We are working with Ofgem to get this scheme launched in November and for it to be rolled out through energy suppliers. If you are interested in participating, or understanding what you could get paid, please contact your energy supplier.

Innovations such as these have never mattered more. Vladimir Putin’s unlawful aggression means we are facing unprecedented energy market volatility, across the continent where Europe’s worst energy nightmare is becoming reality, and pressures on energy supplies this winter.

As a result of Russia’s war in Ukraine, European gas is scarce and prices are high, prompting Europe to weigh emergency measures to limit electricity prices amid the crisis. Alongside this, France’s nuclear fleet has experienced a higher number of outages than expected. Energy shortages in Europe could have knock-on implications for energy supply in Britain.

We have put in place additional contingency arrangements for this winter. For example, the ability to call on generators to fire-up emergency coal units, even as the crisis is a wake-up call to ditch fossil fuels for many, giving Britain 2GW of additional capacity.

We need to be clear, it is possible that without these measures supply could be interrupted for some customers for limited periods of time. This could eventually force us to initiate a temporary rota of planned electricity outages, meaning that some customers could be without power for up to three hours at a time through a process called the electricity supply emergency code (ESEC).

Under the ESEC process we would advise the public the day before any disconnections. We are working with government and industry on planning for this so that the message can be spread across all communities as quickly and accurately as possible. This would include press conferences, social media campaigns, and working with influencers in different communities.

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EU Nuclear Reactor Life Extension focuses on energy security, carbon-free electricity, and safety as ageing reactors face gas shortages, high power prices, and regulatory approvals across the UK and EU amid winter supply risks.

Key Points

EU Nuclear Reactor Life Extension is the policy to keep ageing reactors safely generating affordable, low-carbon power.

✅ Extends reactor operation via inspections and component upgrades

✅ Addresses gas shortages, price volatility, and winter supply risks

✅ Requires national regulator approval and cost-benefit analysis

Shaken by the loss of Russian natural gas since the invasion of Ukraine, European countries are questioning whether they can extend the lives of their ageing nuclear reactors to maintain the supply of affordable, carbon-free electricity needed for net-zero across the bloc — but national regulators, companies and governments disagree on how long the atomic plants can be safely kept running.

Europe avoided large-scale blackouts last winter despite losing its largest supplier of natural gas, and as Germany temporarily extended nuclear operations to bolster stability, but industry is still grappling with high electricity prices and concerns about supply.

Given warnings from the International Energy Agency that the coming winters will be particularly at risk from a global gas shortage, governments have turned their attention to another major energy source — even as some officials argue nuclear would do little to solve the gas issue in the near term — that would exacerbate the problem if it too is disrupted: Europe’s ageing fleet of nuclear power plants.

Nuclear accounts for nearly 10% of energy consumed in the European Union, with transport, industry, heating and cooling traditionally relying on coal, oil and natural gas.

Historically nuclear has provided about a quarter of EU electricity and 15% of British power, even as Germany shut down its last three nuclear plants recently, underscoring diverging national paths.

Taken together, the UK and EU have 109 nuclear reactors running, even as Europe is losing nuclear power in several markets, most of which were built in the 1970s and 1980s and were commissioned to last about 30 years.

That means 95 of those reactors — nearly 90% of the fleet — have passed or are nearing the end of their original lifespan, igniting debates over how long they can safely continue to be granted operating extensions, with some arguing it remains a needed nuclear option for climate goals despite age-related concerns.

Regulations differ across borders, with some countries such as Germany turning its back on nuclear despite an ongoing energy crisis, but life extension discussions are usually a once-a-decade affair involving physical inspections, cost/benefit estimates for replacing major worn-out parts, legislative amendments, and approval from the national nuclear safety authority.

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Ontario Global Adjustment Supreme Court Appeal spotlights a constitutional challenge to Ontario's electricity charge, pitting National Steel Car against the IESO over regulatory charge vs tax, procurement policy, and renewable energy feed-in tariff contracts.

Key Points

An SCC leave bid on whether Ontario's global adjustment is a valid regulatory charge or an unconstitutional tax.

✅ Appeals Court revived case for full record review

✅ Dispute centers on regulatory charge vs tax classification

✅ FIT renewables contracts and procurement policies at issue

The Ontario government wants the Supreme Court of Canada to weigh in on a constitutional challenge being brought against a large provincial electricity charge, a case the province claims raises issues of national importance.

Ontario’s attorney general and its Independent Electricity System Operator applied for permission to appeal to the Supreme Court in January, according to the court’s website.

The province is trying to appeal a Court of Appeal decision reinstating the challenge from November that said a legal challenge by Hamilton, Ont.-based National Steel Car Ltd. should be sent back to a lower-court for a full hearing.

Court reinstates constitutional challenge to Ontario's hefty ‘global adjustment’ electricity charge
National Steel Car appealing decision in legal challenge of Ontario electricity fee it calls an unconstitutional tax
Doug Ford’s cancellation of green energy deals costs Ontario taxpayers $231 million
National Steel Car launched its legal challenge in 2017, with the maker of steel rail cars claiming the province’s global adjustment electricity charge was a tax intended to fund certain post-financial-crisis policy goals. Since it is allegedly a tax, and one not imposed by the provincial legislature, the company’s argument is the global adjustment is unconstitutional, and also in breach of a provincial law requiring a referendum for new taxes.

The global adjustment mostly bridges the gap between the province’s hourly electricity price and the price guaranteed under contracts and regulated rates with power generators. It also helps cover the cost of building new electricity infrastructure and providing conservation programs, but the fee now makes up most of the commodity portion of a household power bill in the province.

Ontario argued the global adjustment is a valid regulatory charge, and moved to have National Steel Car’s challenge thrown out. An Ontario Superior Court judge agreed, and dismissed the challenge in 2018, saying it was “plain, obvious and beyond doubt” it could not succeed. However, an appeals court judge disagreed, writing in a decision last November that the “merits should not have been determined on a pleadings motion and without the development of a full record.”

In filings made to the Supreme Court, both the IESO and Ontario’s Ministry of the Attorney General argued their proposed appeals raise “issues of national and public importance,” such as whether incorporating environmental and social policy goals in procurement could turn attempts by a public body to recover costs into an unconstitutional tax.

Most applications for leave to appeal to the Supreme Court are dismissed, but the Ontario government claims the court’s guidance is required in this case, as it could lead to questions being raised about other fees or charges, such as money raised from fishing licences.

“A failure to dispose of this claim at the pleadings stage may well result in such uncertainty that public authorities across Canada decline to incorporate the kind of environmental and social policy goals objected to in this case into the decisions they make about how to spend funds raised from regulatory charges,” the filing from the attorney general states. “Alternatively, it may induce governments not to engage in cost recovery in connection with publicly supplied goods and services, which can otherwise be sound public policy.”

The government has so far had to pay National Steel Car $250,000 in legal costs “to avoid responding to the credible claim that the Global Adjustment is an unconstitutional tax,” said David Trafford of Morse Shannon LLP, one of National Steel Car’s lawyers.

“The application for leave to appeal is the next step in this effort to avoid having to respond to the case on the merits,” Trafford added in an email.

The application for leave to appeal is the next step in this effort to avoid having to respond to the case on the merits

David Trafford of Morse Shannon, one of National Steel Car’s lawyers
 
National Steel Car has particularly taken issue with the part of the global adjustment that funded contracts for renewable energy under a “feed-in tariff” program, or FIT, which the company called “the main culprit behind the dramatic price increases for electricity.”

The FIT program has been ended, but contracts awarded under it remain in place and form part of the global adjustment. Ontario’s auditor general estimated in 2015 that electricity consumers would pay $9.2 billion more for renewable energy under the government’s guaranteed-price program, a figure that later featured in a dispute between the auditor and the electricity regulator that drew political attention.

National Steel Car said its global adjustment costs grew from $207,260 in 2008 to almost $3.4 million in 2016, reflecting how high electricity rates have pressured manufacturers, to almost $3.4 million in 2016. For 2018, there was approximately $11.2 billion in global adjustment collected, according to the IESO’s reporting.

A spokesperson for the IESO said it “is not in a position to comment” because the case is still before the courts.

Electricity prices have been an ongoing problem for both Ontario consumers and politicians, which the previous Liberal government tried to address in 2017 by, among other things, refinancing global-adjustment costs through the Fair Hydro Plan and other measures.

Since National Steel Car filed its lawsuits, though, the Liberals lost power in the province and were succeeded in 2018 by Premier Doug Ford and the Progressive Conservatives, who made changes to the previous government’s power policies, including legislation to lower electricity rates introduced early in their mandate.

The province has also pursued interprovincial power arrangements, including building on an electricity deal with Quebec as part of its broader energy strategy.

“The present government of Ontario does not agree with the former government’s electricity procurement program, which ceased awarding new contracts in 2016,” Ontario’s attorney general said in a filing. “However, Ontario submits that (the lower-court judge) was correct in holding that it does not give rise to a claim susceptible to being remedied by the courts.”

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Renewable Energy Cost Trends highlight IRENA data showing solar and wind undercut coal, as utility-scale projects drive lower levelized electricity costs worldwide, with the Middle East and UAE advancing mega solar parks.

Key Points

They track how solar and wind undercut new fossil fuels as utility-scale costs drop and investment accelerates.

✅ IRENA reports renewables cheapest for new installations

✅ Solar and wind LCOE fell sharply since 2010

✅ Middle East and UAE scale mega utility projects

Renewable energy is now the cheapest option for new electricity installation in most of the world, a report from the International Renewable Energy Agency (IRENA) on Tuesday said.

Renewable power projects have undercut traditional coal fuel plants, with solar and wind power costs in particular falling as record-breaking growth continues worldwide.

“Installing new renewables increasingly costs less than the cheapest fossil fuels. With or without the health and economic crisis, dirty coal plants were overdue to be consigned to the past, said Francesco La Camera, director-general of IRENA said in the report.

In 2019, renewables accounted for around 72 percent of all new capacity added worldwide, IRENA said, following a 2016 record year that highlighted the momentum, with lowering costs and technological improvements in solar and wind power helping this dynamic. For solar energy, IRENA notes that the cost for electricity from utility-scale plants fell by 82 percent in the decade between 2010 and 2019, as China's solar PV growth underscored in 2016.

“More than half of the renewable capacity added in 2019 achieved lower electricity costs than new coal, while new solar and wind projects are also undercutting the cheapest and least sustainable of existing coal-fired plants,” Camera added.

Costs for solar and wind power also fell year-on-year by 13 and 9 percent, respectively, with offshore wind costs showing steep declines as well. In 2019, more than half of all newly commissioned utility-scale renewable power plants provided electricity cheaper than the lowest cost of a new fossil fuel plant.

The Middle East

In mid-May, a report by UK-based law firm Ashurst suggested the Middle East is the second most popular region for renewable energy investment after North America, at a time when clean energy investment is outpacing fossil fuels.

The region is home to some of the largest renewable energy bets in the world, with Saudi wind expansion gathering pace. The UAE, for instance, is currently developing the Mohammed Bin Rashid Solar Park, the world’s largest concentrated solar power project in the world.

Around 26 percent of Middle East respondents in Ashurst’s survey said that they were presently investing in energy transition, marking the region as the most popular for current investment in renewables, while 11 percent added that they were considering investing.

In North America, the most popular region, 28 percent said that they were currently investing, with 11 percent stating they are considering investing.

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