Premier Kathleen Wynne’s privatization guru is predicting the good kind of sticker shock for Hydro One customers.

Ed Clark insists the upcoming partial sell-off of the Hydro One transmission utility should lead to lower electricity rates for consumers.

“We believe that having Hydro One broadly held will have a favourable impact on electricity rates over time,” Clark told a legislative committee at Queen’s Park on Tuesday.

“Injecting new capital — and, for that matter, private sector discipline — should improve Hydro One’s business performance,” said the former TD Bank CEO.

“Strongly performing companies typically reduce costs and improve service. When this happens the benefits are passed onto ratepayers through lower rates than would otherwise occur,” he said.

Clark, head of the premier’s advisory council on monetizing government assets and architect of the sale of up to 60 per cent of Hydro One, tried to dispel critics’ warnings that electricity rates will jump as a result of privatization.

“Hydro One does not set its rates now nor will it do so as a private company — that is the mandate of the Ontario Energy Board and the board is indifferent as to whether the owner is public or private.”

No single shareholder of the semi-private utility, which controls almost all of Ontario’s transmission lines, will be allowed to own more than 10 per cent of the company.

Along with selling Hydro One to raise $4 billion to help fund new transit infrastructure, Clark’s panel is ushering in the sale of six-packs in 450 of Ontario’s 1,500 supermarkets over the coming years, ending the Beer Store’s quasi monopoly.

By the end of the summer, the advisory council will also report back on expanding supermarket wine sales and modernizing the publicly owned Liquor Control Board of Ontario with online sales and specialty boutiques.

Countering Clark’s rosy vision, Warren (Smokey) Thomas, president of the Ontario Public Service Employees Union, said “privatization won’t save us money — it will cost us more.”

“The guiding principle of the 2015 Ontario budget is cannibalism. The budget says we can only afford public infrastructure if we cut services and sell assets,” Thomas told the legislative committee.

“Losing control of Hydro One won’t build our economy, it will strip us of our power,” he said, calling Wynne “the most arrogant power-mad premier” in recent memory.

“We need to put the brakes on privatization and the sale of assets like Hydro One.”

Thomas and Clark were testifying at a legislative committee — dominated by Liberal MPPs — that is poring over Finance Minister Charles Sousa’s April 23 budget.

The Liberals are expected to pass Sousa’s spending plan intact before the legislature rises for the summer on June 4.

Ed Clark, head of the premier’s advisory council on government assets, has made some key recommendations to boost revenues for the treasury:

Sell up to 60 per cent of Hydro One, starting with an initial public offering of 15 per cent, to bankroll new public transit infrastructure.

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Allow the sale of beer in 450 of Ontario’s 1,500 supermarkets.

Enable 9,000 small licensees to buy beer at the same lower price for their bars and restaurants as ordinary consumers, ending the practice of them paying a premium at the Beer Store.

Permit the sale of 12-packs at some LCBO outlets.

Force the foreign-owned Beer Store to devote at least 20 per cent of its shelf space and well as merchandising and marketing programs to Ontario craft beers.

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