Electricity ratepayers in Ontario will not lose the 10 per cent rebates the Liberal government introduced to offset soaring hydro bills, according to the premier.

One of the recommendations from economist Don Drummond to help the province get out of deficit was ending the energy rebates introduced last year.

Dalton McGuinty says there's a huge cost associated with rebuilding Ontario's aging power grid and the government wants to provide some assistance.

He says the government will not phase out the rebates earlier than the original 2016 end date, which is when the existing debt retirement charge is supposed to be removed from hydro bills.

McGuinty already rejected Drummond's recommendation to scrap full-day kindergarten, but so far hasn't said how the Liberals will find $1.5 billion a year to pay for it while trying to cut spending.

Drummond warned the deficit would double to more than $30 billion if all 362 of his recommendations were not implemented, and said something else would have to go for every new program introduced.