In an effort to raise $4-billion for infrastructure projects the Ontario government is selling off 60% of Hydro One and allowing beer sales in grocery stores.
Beer will be sold in up to 450 grocery stores. However, there will be a new tax on beer, which is expected to generate about $100-million per year. It will be phased in over the next four years.
The government says Ontario's largest brewers have committed to cap price increases to inflation until May of 2017, unless there are major changes in the industry.
A new agreement with the Beer Store will also open ownership to smaller brewers and allow for the sale of more craft beers.
The Hydro One shares will be sold through an initial public offering (IPO). The Ontario government will still be the largest shareholder of the company, remaining in control.
No other shareholder or group of shareholders will be allowed to own more than 10% of Hydro One. Rates will continue to be set by the Ontario Energy Board.
