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Transcript of 1 LOW-INCOME ENERGY NETWORK LIEN advocacy update: Making progress LIEN Annual Conference, Toronto...
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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