1. Low Income Consultation Vulnerable Energy Consumers Coalition Panel 1 Michael Janigan Executive Director Public Interest Advocacy Centre Counsel to VECC

2. Low Income Consultation Vulnerable Energy Consumers Coalition Traditionally, the concern of the regulator and policy makers associated with avoiding loss of “connectedness” with the network, or potential hardship in maintaining connectedness. Additional concerns associated with disconnections for non-payment, security deposits, bad debt charges etc. primarily because they affected connectedness. Connectedness increasingly difficult to maintain as a universal feature of the network

3. Low Income Consultation Vulnerable Energy Consumers Coalition Restructuring of the energy industry in Ontario plethora of new agencies and players eager to play their roles in production, transmission, distribution and conservation of electricity. The short term result has been to put upward pressure on rates. Economic growth and higher income do not shield vulnerable ratepayers from upwardly moving rates. The most recent Census data has shown that the median income for Canadians has not increased between 1980 and 2005, and the situation has deteriorated for lower income Canadians.

4. Low Income Consultation Vulnerable Energy Consumers Coalition Connectedness should be the objective for low income and vulnerable consumer support programs and the programs must be designed to allow connectedness without creating hardship for the customer to do so. Is connectedness is threatened for any group of ratepayers? What measures that must be taken to maintain connectedness Who are the vulnerable consumers facing loss of connectedness

5. Low Income Consultation Vulnerable Energy Consumers Coalition it is important to note that there will be classes of energy consumers which may not fit neatly into a low income category, particularly if the tests for program receipt are based on receipt of social assistance or social assistance- like benefits. Although, according TEA Report (section 3), there are about 104,000 owner occupied Senior-led Low Income households, many other senior citizens may find that their retirement income does not keep pace with increases in energy costs. They may fall outside a traditional low-income profile but be experiencing possible loss of connectedness. There may well be a need for programs providing temporary or longer term relief to enable seniors to remain housed and living in dignity. This may include more than simply rate relief: reasonable payment plans, carry forward of arrears, cancellation of late payment charges There are other challenges to assisting seniors with regard to participation in conservation programs and gas commodity supplier default which we will discuss later in this consultation.

6. Low Income Consultation Vulnerable Energy Consumers Coalition VECC believes that an independent study of customer issues associated with disconnectedness, the hardships potentially caused, and the potential success of such options should be undertaken. As well, the experience with customer protection programs in most industries is that reliance on business good will and good intentions is not enough. There should be transparency associated with what is available that is independent of the choice or approach of the individual CSR. CONCLUSIONS

7. Low Income Consultation Vulnerable Energy Consumers Coalition CONCLUSIONS (cont.) VECC has tried to frame the issue of low-income programs as much as possible in the language of disconnectedness to the network and the prevention of hardship associated with the same. While the programs discussed may have a government-like aspect of improving the societal good and raising the standard of living for the poor, they are linked to the concept of keeping customers on the network, and providing service to as great a number of customers as possible