The partial sell-off of Hydro One will result in short term gain for the Wynne Government, but long term pain for taxpayers.
That’s the findings of the latest report on the privatization of the utility by the Financial Accountability Office.
Chief Financial Analyst Jeffrey Novak suggests the Liberals would have been better off borrowing for infrastructure projects, rather than financing through the sale of Hydro One shares.
Novak says the government will see a net benefit of $3.8-billion by the end of this fiscal year, but will lose $1.1-billion next year.
He adds the purchase of Avista, the American utility, last year, is having a negative impact on Hydro One’s credit rating, meaning increased costs for borrowing in the future.
