Energy Assistance Plan for Low Income Households

in Peterborough City & County

Margaret McCutcheonHousing Support Worker, CCRC/HRC

Research & Policy Analyst, PSPC (former)

Overview

Report commissioned in 2002 by Policy & Issues Sub-Committee of AHAC

Spurred by rising oil and natural gas prices, and pending deregulation of electricity market

Purpose: To develop recommendations to address the need for improved and sustainable energy assistance for low income households

Overview

Prepared by PSPC to provide information to support the development of recommendations by AHAC

At the time, no comprehensive plan in Canada to address rising energy costs & potential crisis for low income households

Overview

Focus of report:– Establish the need for assistance for low

income residents– Describe existing community supports– Review models for low income energy

assistance, from Canada & U.S.

Measuring Need: Energy Affordability

Shelter cost to income ratio (CMHC)– Total shelter costs including utilities < 30% of gross

household income

Energy burden (U.S. HUD)– Total home energy costs < 8% of gross household

income (5% electric & 3% gas)

Measuring Need: Energy Affordability

Family of four in Peterborough City

– Low income cut off (2005) = $2754

– Total shelter cost < 30% = $826

– Total energy cost < 8% = $220

Hydro = $138 & Gas = $83

Measuring Need

Emergency energy assistance to low income households in Peterborough City-County

– 2000-2001 - $56,939

– 2001-2002 - $108,098

Model for Energy Assistance Plan

Emergency Assistance

Transition Assistance

Crisis Prevention

Consumer Protections

Model for Energy Assistance Plan

Consumer Protections– Regulatory & social policy measures which ensure

an affordable energy supply for all consumers, & low income consumers in particular

– Preventive Strategy

Model for Energy Assistance Plan

Crisis Prevention– Financial assistance, rate discounts, payment &

arrears management options, & energy efficiency programs, funded & administered by government & utilities

– Preventive Strategy

Model for Energy Assistance Plan

Transition Assistance– Government rebates to help offset sharply rising

energy prices (may be in response to deregulation, extreme weather conditions, etc.)

– Reactive Strategy

Model for Energy Assistance Plan

Emergency Assistance– Emergency financial assistance & advocacy to

prevent pending disconnection or arrange for reconnection

– Reactive Strategy

Recommendations

Policy & Issues Subcommittee consulted with community experts

Released Recommendations in Nov. 2002

18 recommendations for short, medium & long-term action

Energy Assistance Plan Background Report

& the Recommendations are available at:

www.pspc.on.ca

Go to “Housing” on the Publications page