At the end of May the Ontario government cleared the way for the sale of the province’s C$5.5 billion grid – the biggest share sale in Canada’s history – by creating new legislation thatcircumvents a court ruling blocking the sale of Hydro One shares to the public.
But only days later the deal has stalled. The company’s board has resigned, citing the provincial government’s ‘continuing interference’ in the running of the utility. The effect has been to paralyse the sale process. The mass resignation came soon after the government had introduced a bill that would fire the board and cut the salaries and compensation packages of top executives. It was the latest salvo in a continuing battle between the legislature and the judiciary. In April a judge ruled that the province did not have the authority to proceed with the sale because of improper drafting of the sell-off legislation.