Union Gas knew the Ontario Liberal government was working on a climate change action plan, but the Chatham-based natural gas utility wasn’t expecting to potentially take such a huge hit from it.

A story in Monday’s Globe and Mail, based on a leaked climate change plan, outlines how the province intends to spend $7 billion over the next four years to drastically reduce Ontario’s carbon footprint.

According to the Globe and Mail report, the plan calls for phasing out the use of natural gas for heating and providing incentives for people to purchase electric vehicles.

“We are aware that the climate change action plan is in the works,” Andrea Stass, manager, external communications and media relations, adding the company hasn’t seen any of the details.

“In terms of eliminating natural gas as a source of heat for homes and businesses that’s a surprise to us,” she added.

Stass said there are some elements that are reported in the plan, which Union Gas has been advocating for, including using liquified natural gas to replace diesel fuel for the heavy transportation industry.

“Natural gas has less carbon, so that’s a way for the government to achieve their carbon reduction targets, and do it in an affordable and, we think, a realistic way,” she said.

However, Stass said nearly 80 per cent of homeowners and businesses choose to use natural gas, because it is an affordable and reliable source of heat.

“We’re concerned that essentially mandating natural gas out of existence in homes and businesses will be very disruptive and costly for consumers,” she said, adding electric heat is six times more expensive.

Lambton-Kent-Middlesex MPP Monte McNaughton said, “we know that it’s going to cost each household $3,000 more each year to switch from natural gas to electricity.”

With nearly 80 per cent of homes and businesses using natural gas, he accuses the government of forcing its agenda that includes banning the use of natural gas in new home construction.

McNaughton said this move “will be devastating to our economy.

“This is completely contrary to what the people in the province want,” he added.

Chatham-Kent-Essex MPP Rick Nicholls said, “locally, Union Gas employs 850 people, but across Ontario they employee thousands.

“If the Liberal government abandons natural gas, the loss of jobs as well as economic security in our entire region and the province as a whole would be unimaginable,” he added.

Stass said to put this issue in perspective, Ontario households and small businesses are responsible for a very small percentage of Ontario’s greenhouse gas emissions, and yet the climate change action plan unfairly hits them with the majority of the cost for cap-and-trade.

She added, as proposed, the cap-and-trade program will place Ontario businesses at a competitive disadvantage relative to surrounding jurisdictions with whom Ontario competes – all of which are embracing affordable natural gas as a competitive advantage.

“Businesses already hurting from higher electricity prices will choose to relocate away from Ontario, and Ontario residents and consumers will again suffer the loss of jobs and related income,” Stass said.

Nicholls said he received calls and e-mails on Monday from many constituents outraged over the potential damage this plan could have on their communities.

“The No. 1 complaint I hear in both (constituency) offices is that electricity rates are out of control, but now the government wants to force people to use electric heat? That doesn’t make sense to me,” he said.

McNaughton said the Liberal government is out of touch, citing the fact that in recent years it has built 17 gas-fired generating stations in the province of Ontario.

“It’s a government forcing an agenda on the people of Ontario without considering the cost implications on the entire economy,” the MPP said. “I was shocked and still in disbelief after hearing the news.”

He said the political reality is the Liberal cabinet is divided on this matter, noting at least one Ontario cabinet minister leaked this information to the Globe and Mail.

McNaughton is also concerned about the impact of the plan on Ontario’s $16-billion automotive industry, noting if the government handcuffs the auto sector, businesses will simply choose to uproot their plants to lower cost, business-friendly jurisdictions in the U.S. and Mexico.

He said the Liberal government has no economic plan for jobs and routinely makes these kinds of decisions “without thinking about the real-life implications for families.”

Nicholls said the agriculture industry is also confused about this plan.

“For years they have been working with the government to expand natural gas to rural Ontario, and now they’re being told the Liberals want to abandon natural gas?” he said.

Eshreve@postmedia.com

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