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LOW-INCOME ENERGY NETWORK. Closing the energy affordability gap: Energy conservation and rate assistance LIEN Annual Conference, Hamilton June 20, 2007 Mary Todorow, ACTO Mary Truemner, ACTO. Major Gaps.
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LOW-INCOME ENERGY NETWORK Closing the energy affordability gap: Energy conservation and rate assistance LIEN Annual Conference, Hamilton June 20, 2007 Mary Todorow, ACTO Mary Truemner, ACTO
Major Gaps • No comprehensive, province-wide low-income energy conservation program – and no national program • No permanent low-income rate assistance program
Where do low-income consumers live? 759,590 LICO households • 490,485 are tenant households (65%) • Live social housing or private sector rental – most in multi-residential buildings • 269,095 are homeowners (35%) • 39% are senior-led
Housing affordability • 42% of Ontario tenant households pay 30% or more of their household income on shelter costs (including utilities). • 66.4% of Ontario households in core housing need are tenant households - a significantly disproportionate share. • Smart Metering impact….
Energy conservation and low-income consumers Conservation is the: cheapest, cleanest, fastest solution to our energy crisis BUT, it won’t happen in low-income residential sector without financial investment
Low-income rate assistance • Ontario Home Energy Affordability Program • 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
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 is appealing decision to Divisional Court, and • LIEN has 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
Lessons learned • Early days for renewed focus on conservation – responsibility shifting, capacity building • Strategic OEB interventions only • Need political will to make things happen
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