The Ontario Energy Board has ordered Hydro One to substantially lower a rate increase the large utility had been seeking for next year.

Hydro One wanted to be able to raise its transmission rates by 4.8 per cent in 2018.

The Opposition Progressive Conservatives slammed the proposed increase, but Energy Minister Glenn Thibeault said all rate increases will be held to the rate of inflation for the next four years, as set out in the Liberal plan to cut hydro bills.

The OEB’s decision issued this week orders Hydro One to cut that proposed rate increase to just 0.2 per cent for 2018.

The OEB also rejected a Hydro One proposal to give shareholders all of the tax savings generated by the IPO in 2015 when the Liberal government first began partially privatizing the utility.

The regulator instead mandated shareholders receive 62 per cent of the savings while ratepayers receive the remaining 38 per cent.