Energy-Efficient Appliances Warrant Tax Cuts

These and other measures, including an electricity rebate and a rate cap of 4.3 cents a kilowatt hour for the next four years, were included in the government's Electricity Pricing, Conservation and Supply Act.

"The goal here is to encourage consumers to buy energy efficient appliances to help make sure we have reliable, dependable electricity," Finance Minister Janet Ecker said.

She added that the holiday on the 8 per cent provincial sales tax would be effective from late November, once the law is passed.

On a standard $800 fridge, washing machine or dishwasher, the savings represent $64.

"If we can encourage people to (get rid of) that 30-year-old fridge in the basement where they put leftovers, that would certainly have a huge impact," said Energy Minister John Baird.

Ecker said companies wanting to build power plants that use alternative energy, including natural gas, would get a 10-year break on capital, property and corporate income taxes.

Rising prices, due in large measure to a hot summer and a shortage of power, forced the government to back away for the most part from deregulation introduced May 1 and impose new restrictions on pricing.

Liberal MPP Michael Bryant (St. Paul's) said the Tories have had more than seven years to encourage energy efficiency, instead of doing it now to curry favour before an election.

"This is all ... too late, and a fridge in every house sounds like a pretty goofy way of ensuring that we get adequate conservation and adequate supply..." he said. "They seem to be making it up as they go along."