For the newspaper article in toronto star "hydro price rebate could frustrate conservation" what is the issue or concern?

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pohnpei397 | College Teacher | (Level 3) Distinguished Educator

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The issue or concern in this article is what effect the proposed 10% rebate will have on the consumption of electricity in Ontario.

According to this article, the Liberals in Ontario have proposed that there should be a 10% rebate on electrical power.  They want to give the rebate because the price of electric power has been increasing due to the use of more expensive electricity (expensive because it comes from "green" sources).

The problem is that this is likely to make people use more electricity because it will lower the price of the electricity.  Basic economics tells us that when something costs less, people use more of it.  If the Liberals' plan is to cut the use of electricity, this seems like the wrong way to go about it.

So the issue or concern is whether the rebate will act to increase power consumption at a time when the Liberals are trying to reduce power consumption.

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