With your support we The opinions and recommendations in this report, and any errors, are can continue to produce high quality research — and those of the author, and do not necessarily reflect the views of the make sure it gets into the hands of citizens, journal- publishers or funders of this report. [...] This report uses the Social Policy Simulation Database and Model to analyze the impact of the residential portion of the rebate and determine which households will derive the greatest savings from the rebate program. [...] Since the government is offering a flat rate rebate of eight per cent for everyone, and electricity consumption increases with income, the richest households in Ontario will enjoy the biggest savings from this program, while the poorest households will see the smallest. [...] Introduction Amid reports of electricity costs forcing low-income Ontarians to choose between hydro bills and rent, the cost of electricity has become a political hot potato in this pre-election year.1 In the throne speech last fall, the gov- ernment announced its intention to introduce legislation that would rebate the HST portion of residential, small business, and farm hydro bills. [...] SPSD/M shows that a disproportionate share of the $521 million cost of the rebate to households goes to the well-off: the richest 10 per cent of house- holds, who make over $176,000, will take home 19 per cent of the benefit under this current rebate.5 More than half — 55 per cent — of the benefit of this rebate will go to the richest 40 per cent of households, those who earn $89,000 or more.