The privatization of public utilities is one of the most serious threats to the well-being of Ontario’s citizens. Essential services such as electricity, natural gas, and potable water are not mere commodities; they are fundamental to public health, economic stability, and social equity. Yet, time and again, privatization has proven to be a short-sighted policy that prioritizes corporate profit over public interest, leading to rising costs, reduced accountability, and degraded service quality.

Ontario has already had a taste of these consequences. The partial privatization of Hydro One in 2015, sold as a way to fund infrastructure projects, stripped the public of full control over a critical utility. The result? Electricity rates surged while executive salaries ballooned, all while Ontarians faced an affordability crisis. Now, the same logic is being applied to water infrastructure, with growing interest in public-private partnerships (P3s) that risk putting a basic human right in the hands of profit-driven corporations.

The United Kingdom serves as a cautionary tale. Margaret Thatcher’s aggressive privatization agenda in the 1980s dismantled public control over water, gas, and electricity. Decades later, the consequences are glaringly evident—privatized water companies have failed to maintain infrastructure, leading to widespread sewage pollution in rivers and skyrocketing utility bills. In 2023, public outrage reached a boiling point as UK citizens demanded renationalization, fed up with a system that prioritized shareholder dividends over basic service quality.

Ontario does not need to look across the Atlantic to see privatization’s dangers. The sale of Highway 407 in the late 1990s remains one of the most infamous examples. Originally built with public funds, the highway was sold to a private consortium, which promptly implemented steep toll increases. Now, it is one of the most expensive toll roads in North America, generating billions in private profits while Ontario drivers pay the price.

Similarly, in the 1990s, Premier Mike Harris’s government moved to privatize parts of Ontario’s water services, leading to deregulation that contributed to the Walkerton tragedy in 2000. E. coli contamination in the town’s water supply led to seven deaths and thousands of illnesses. A key lesson from Walkerton was that water safety should never be compromised for cost-cutting measures—yet renewed interest in water privatization suggests that this lesson is being ignored.

Proponents of privatization often push P3s as a supposed middle ground, but the reality is that these arrangements often result in long-term financial burdens for taxpayers and reduced service quality. In Ontario, numerous P3 infrastructure projects, including hospitals and transit systems, have faced cost overruns, delays, and contract disputes that leave the public footing the bill. The Brampton Civic Hospital, one of Ontario’s earliest P3 healthcare projects, ended up costing nearly $200 million more than a traditional public model, demonstrating how these deals frequently benefit corporate interests at the public’s expense.

When it comes to water and electricity, the risks are even greater. Private firms operating under P3 models have strong incentives to minimize costs, which can lead to deferred maintenance, staff reductions, and lower service quality. Meanwhile, the public remains on the hook for any failures, as companies structure contracts to shield themselves from financial risk while reaping the profits.

Once essential services are privatized, reversing the decision becomes extremely difficult. Private companies, armed with deep lobbying power, fight fiercely to protect their revenue streams. In the case of Hydro One, the Ontario government now owns less than 50% of the company, making it virtually impossible to fully reassert public control without an expensive and politically complex buyback.

The simple truth is that profit should never be the primary driver in the management of public utilities. Roads, water, electricity, and natural gas are the backbone of a functioning society, and their operation must be based on public interest, environmental sustainability, and affordability—not corporate greed.

Ontario must resist further privatization and instead strengthen public ownership of essential services. This means investing in infrastructure, enforcing transparency, and ensuring that these utilities serve the people rather than the pockets of a few wealthy shareholders. The province has seen the consequences of privatization firsthand, and the path forward is clear: protect public utilities, prioritize public well-being, and reject the false promises of privatization before it’s too late.