1 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

2 Major Gaps  No comprehensive, province-wide low- income energy conservation program – and no national program  No permanent low-income rate assistance program

3 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

4 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….

5 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

6 Snapshot - low-income conservation 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 Social Housing Program - Phase Two in development OPA's Energy Efficiency for Houses $ 2,900,000 OPA's Canada-Ontario AHP Energy Efficiency Program $ 3,700,000 OPA's Multifamily Buildings Program in development $ 33,558,586

7 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

8 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

9 Lessons learned  Early days for renewed focus on conservation – responsibility shifting, capacity building  Strategic OEB interventions only  Need political will to make things happen

10 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