TORONTO - Ontario consumers pay too much for electricity because the Liberal government isn't doing enough to promote conservation, the opposition parties charged Wednesday following a critical report from the province's environmental watchdog.

The Liberal government failed to meet virtually all of its conservation targets, reported environmental commissioner Gord Miller.

"However, the targets were ambitious, and despite the shortfall there was lots of peak energy conserved," Miller told reporters.

"Demand was reduced by an amount equivalent to not having to build about three new natural gas-fired peaking plants, and we all know how popular those are."

The Liberals clearly did not take energy conservation seriously enough and were not ambitious enough in their targets, said New Democrat critic Peter Tabuns.

"The fact they failed to meet their targets is going to mean higher costs for electricity for families because conservation is the least cost option," said Tabuns.

"They should have been going full tilt to reduce the demand for electricity so we could reduce the amount of money we spend on new generation."

Ontario's Green party said the Liberals' failure to prioritize conservation increases utilities' bills for everyone.

"It's not a surprise we didn't hit our conservation targets, but it is a deep concern because the least expensive way to meet our energy needs is to reduce demand," said Green Leader Mike Schreiner.

Energy Minister Chris Bentley defended the government's conservation efforts, and said they fit right in with the Liberals' strong emphasis on green energy to help clean up the environment.

"We were very ambitious, did a lot, accomplished a lot (and) saved about $3.8 billion in costs for Ontario consumers because of the power we didn't have to pay to produce," said Bentley.

"There's more work to be done, and I'm looking right now to see how we can achieve those very ambitious targets."

The environment commissioner also took the government to task for not having any method to calculate the impact of smart meters and time-of-use pricing for electricity.

"We've had several years' warning the smart meters were going to be put in place and I was somewhat surprised to find out that we don't have the metrics to say how much energy they're saving us," said Miller.

The Progressive Conservatives said that confirmed their claim that smart meters are "nothing more than tax machines" that force people to do laundry and other chores in evenings and very early mornings to get the lowest electricity prices.

"The smart meters aren't doing what they were designed to do, so they're just causing inconvenience to consumers," said Tory critic Vic Fedeli

Miller also found hydro utilities, known as local distribution companies, will not meet their conservation targets because not one in Ontario has an approved plan to do so.

"I find it extraordinary, the idea that you could spend $1 billion and not have in place a system to measure whether or not the meters were giving you the value you expected to have," said Tabuns.

"It's irresponsible."

The Green party said it was time to "stop the dumb use of smart meters."

Premier Dalton McGuinty refused an NDP request to have the auditor investigate the Liberals' decision to cancel two contracted gas-fired generating stations in Oakville and Mississauga to see how much taxpayers will have to pay for killing the deals.

"I'll leave it to the auditor," McGuinty told reporters.

"If he thinks that is worthy of his close attention, then of course it's something he might choose to do."