TORONTO — The Progressive Conservative government says its plan to fix the "hydro mess" left behind by the Liberals would save taxpayers hundreds of millions of dollars while maintaining a 25 per cent rate cut.

The so-called Fixing the Hydro Mess Act — introduced Thursday — brings an end to the previous administration's hydro plan, uploads local electricity conservation programs to the corporation that manages the system and overhauls the energy sector watchdog.

Energy Minister Greg Rick Ford said hydro rate increases will be held to inflation, and noted that the government remains committed to its election campaign promise of lowering rates a further 12 per cent, although he did not have a timeline for that goal.

"The objective is to move as quickly as possible," he said.

Liberal plan was to address skyrocketing prices

The Liberals brought in their Fair Hydro Plan in 2017 to address a public outcry over soaring hydro rates, particularly in rural areas. The policy lowered time-of-use rates by 25 per cent by removing from bills a portion of the global adjustment — a charge consumers paid for above-market rates to power producers.

Over the next decade, a new entity overseen by Ontario Power Generation was to pay that difference and take on debt to do so. Then, the cost of paying back that debt, which would have been up to $28 billion under the Liberal plan, was to go back onto ratepayers' bills for the next 20 years. The structure meant the costs of the plan were kept off government books.

The auditor general criticized the plan, saying it would cost the province an extra $4 billion.

Under the new Tory plan, borrowing costs to achieve the rate cut would move onto the government's books.

Rickford said that decision would allow the government to save on interest payments, though he did not say by what amount.