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LOW-INCOME ENERGY LOW-INCOME ENERGY NETWORKNETWORK

LIEN advocacy update:LIEN advocacy update:

Making progressMaking progress

LIEN Annual Conference, TorontoJune 10, 2008

Theresa McClenaghan, CELAMary Truemner, ACTO

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Presentation overviewPresentation overview

1. Timing is good to tackle energy poverty

2. LIEN’s “pyramid”3. Low-income energy conservation

programs4. Low-income energy rate affordability

program5. How you can help

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Opportunities to end energy Opportunities to end energy povertypoverty

Environmental, social and economic…

Ontario’s goal to reduce peak electricity demand by 6,300 MW by 2025 (OPA’s Integrated Power System Plan or IPSP – includes $10 Billion for conservation)

Ontario’s climate change plan (coal plant phase-out by 2014)

Ontario’s long-term affordable housing strategy

Ontario’s poverty reduction strategy, with firm targets to measure progress

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LIEN’s approach to low-income energy conservation & assistance

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Major Gaps

No comprehensive, province-wide low-income energy conservation program – and no national program

No permanent low-income energy rate assistance program

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Where do low-income consumers Where do low-income consumers live?live?

759,590 LICO households (2001 Census)

490,485 are tenant households (65%) Live in private sector rental or social housing – most in

multi-residential buildings

269,095 are homeowners (35%) 39% are senior-led

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Rising energy pricesRising energy prices

Real cost-to-customer increases of OPA’s 20-year IPSP expected to be 15% to 20%

Natural gas prices and oil also on the rise

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Rising energy prices and low-Rising energy prices and low-income consumersincome consumers

Low-income households are particularly vulnerable to increases in shelter and utility costs - put housing in jeopardy.

High energy costs are the second reason for economic evictions in Ontario, right after unaffordable rents.

Heating, eating or paying the rent will be choice faced by many.

Reductions in energy use may be at the expense of health, socially acceptable standards of living.

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Energy conservation and low-Energy conservation and low-income consumersincome consumers

Conservation is a cheap, fast, clean solution to energy crunch and climate change crisis

More efficient use of energy: reduces pollution major respiratory

health improvements especially for youngest and oldest

avoids cost of new generating plants reduces energy bills and lessens

effect of rising prices Makes housing more affordable &

comfortable

BUT, it won’t happen in low-income residential sector without financial investment …

Income Levels and Determinants of Health

Hospitalizations for conditions like asthma, angina, chronic obstructive pulmonary disease, heart failure and others are twice as high in lowest income neighbourhoods compared to highest income neighbourhoods (2008 Health Indicators Report, Stats Canada)

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Snapshot - low-income Snapshot - low-income conservationconservation

Enbridge Gas Distribution Inc. $ 4,558,250

Union Gas $ 4,303,000

LDCs' low-income CDM $ 4,293,120

LDCs' social housing CDM $ 4,554,216

OPA's Social Housing Program - Phase One $ 9,250,000

OPA's Energy Efficiency Assistance for Houses pilot $ 2,900,000

OPA's Canada-Ontario AHP Energy Efficiency Program $ 3,700,000

Total $ 33,558,58

OPA's Multifamily Buildings Program (6 units +) RFP issued

OPA's Energy Efficiency Assistance for Houses program – expansion province-wide in development

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Low-income rate assistance

Ontario Home Energy Affordability Program – LIEN tried to file in Union Gas and Enbridge Gas Distribution’s rates hearings at OEB

5 major components: rate affordability, arrears management, crisis intervention, conservation & demand management and consumer protections

low-income consumers should not pay more than 6% of total household income on energy

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Low-income rate assistance

April 26, 2007 OEB decision – no jurisdiction to set affordable rates for low-income consumers

-strong dissent decision by OEB Vice-Chair

Response: LIEN appealed decision to Divisional Court, and LIEN requested Minister of Energy to issue a directive

to the OEB to hold a generic hearing to consider and implement solutions, including low-income rate assistance

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Low-income rate assistance

May 16, 2008 – Divisional Court issues decision in favour of LIEN

Declare that OEB has jurisdiction to establish a rate affordability assistance program

But: Court waivers on how and the manner by which the

Board should exercise the jurisdiction to consider ability to pay in rate setting

We need a generic hearing at the OEB

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Local advocacy

Educating and gaining support of MPs, MPPs, municipal councils and LDCs about need for low-income CDM programs and low-income rate assistance

Raising public awareness about energy poverty in the local community

Input to poverty reduction consultation and upcoming affordable housing strategy consultation