TORONTO - Consumers are being hit with all kinds of hidden fees that, while small on their own, amount to "death by a thousand cuts" for people already struggling to pay their bills because of the recession, the opposition charged Monday.

The New Democrats, already angry over a revelation this past weekend that hydro bills will include an annual conservation levy of $4 as early as May, are pointing to the end of a rebate on energy-efficient appliances as yet another example of how consumers are being forced to pay more.

"Bit by bit by bit, it's like death by a thousand cuts as opposed to something that's really straightforward and up front," said NDP Leader Andrea Horwath.

"The costs of energy are going up, and the government's not doing anything to help people to manage their consumption."

A point-of-sale exemption on the provincial sales tax for consumers who purchased Energy Star-rated appliances expired in the fall, Horwath said, and the government failed to negotiate further exemptions under the HST.

That means anyone looking to buy Energy Star appliances must currently pay both the GST and PST on them -- and will be hit with the 13 per cent harmonized sales tax when it takes effect in July.

The increase to hydro bills was confirmed by Energy Minister Brad Duguid Saturday after reports surfaced of a new levy to help cover $53 million of the government's conservation and green energy program.

Progressive Conservative Leader Tim Hudak berated the government for increasing hydro rates without a formal announcement, and accused the Liberals of "using utilities companies to be tax collectors for government programs."

"If you are going to increase taxes on people for whatever programs, tell them about it, be honest about it, don't try to hide it," said Hudak.

He questioned why there was no announcement about the hydro bill increase, which he described as "another slippery and greedy tax grab from the McGuinty government."

It comes as ratepayers prepare to pay 13 per cent instead of five per cent on their hydro bills because of the HST.

Premier Dalton McGuinty defended the surcharge Monday, saying he wasn't exactly sure why it wasn't announced, but adding he was "proud of the program that helps Ontarians conserve energy."

"There's always a lot of fun to be had in calling something a tax, because people generally don't like taxes," McGuinty said.

"I understand that, but this is not a tax -- it doesn't matter whether the opposition calls it that or not. It's a new 33-cents-a-month fee that appears on the average electricity bill, and the purpose of that fee is designed to fund conservation programs."

Duguid said the levy was a small price to pay for clean energy, and much cheaper than alternatives such as building new nuclear plants.

"Conservation is critical, and it does require investment up front," said Duguid, who insisted the government was being transparent despite the lack of any announcement on the matter.

He would not say, however, whether the levy could apply to other utilities or whether it will re-occur every year.

When it comes to the Energy Star rebate, Duguid said there were several other conservation programs people could take advantage of, noting that 160,000 families have benefited from energy audits and retrofits.

"There are a number of programs for appliances that are available, many of them are done through local district providers and we're going to continue to encourage them to provide those programs," Duguid said.

The temporary point-of-sale exemption was introduced in July 2007 for a one-year period for new Energy Star-qualified household products, and extended for another year until Aug. 31, 2009.