A group that studies social issues and advocates on behalf of New Brunswickers with low incomes is disappointed in a recent decision on power rates.
The Energy and Utilities Board approved N.B. Power’s application to raise rates by about 19 per cent over two years.
That will mean another increase next April, almost as high as this year’s, of 9.25 per cent, which was ratified Nov. 8 by the board.
“Much like death and taxes, I think increases in N.B. Power rates are probably baked-in in this province for the foreseeable future,” said Randy Hatfield, executive director of the Human Development Council, based in Saint John.
“And if that is the case, then we have to be very much aware of the hardship that that’s going to leave a number of New Brunswick ratepayers in.”
Many New Brunswickers would already be classed as being in energy poverty, said Hatfield, though there is no universally accepted threshold to define that.
New Brunswick was the province with the highest rate of households paying over six per cent of their income on energy, according to a report published in March by the Human Development Council. (Human Development Council)
According to a report by the council, the federal government defines energy poverty as paying more than 10 per cent of household income on energy, which would affect 14.6 per cent of households in the province. Other groups use a six per cent threshold, bumping the numbers up to 36.3 per cent of households in the province.
With higher electricity rates, the portion of people in energy poverty can be expected to grow.
Some older couples living on pensions, for example, don’t have the flexibility to afford an additional $30 to $50 for electricit when other expenses, such as rent, are also up by about $300 a month, said Hatfield.
To help people cope with that type of situation, the council is calling for a comprehensive policy on energy poverty.
These exist in many other provinces and have for quite some time.
“Nova Scotia is 20 years ahead of us,” Hatfield said.
One pillar of such a program is emergency benefits, he said, noting this type of funding is already available in New Brunswick for both fuel and rent.
A number of other programs are also available to help cut down energy use and costs, said Dominique Couture, a spokesperson for N.B. Power.
N.B. Power says it’s open to constructive feedback on ways to deal with customers who struggle to pay their bills. (Michael Heenan/CBC)
Some pay for or subsidize the cost of heat pumps and other heating upgrades, while others help defray the cost of energy efficiency renovations, such as new windows and doors, or provide in-store rebates on products such as clotheslines and weather stripping.
“We understand that rising rates are difficult for our customers and know that electricity is an essential service,” said Couture.
“N.B. Power is committed to doing everything we can to manage and reduce our own costs to help limit rate increases for customers,” she said.
Some other measures that Hatfield believes would help include changes to the way N.B. Power deals with customers who fall behind on their bills, incentives for landlords to make efficiency upgrades and direct financial assistance to those most in need.
“The glaring omission in New Brunswick that we see in other utilities throughout North America, including Ontario, is a low-income rebate,” he said.
Hatfield would like to see a monthly rebate applied directly on the energy bills of those living in energy poverty.
N.B. Power bills went up 9.8 per cent for residential customers this year and another increase almost as large has been approved for next year. (N.B. Power)
Susan Holt, New Brunswick’s new premier, has said the 10-per-cent provincial portion of sales tax will be removed from residential power bills by April 1.
That will help, said Hatfield, but may not be the best bang for the buck.
“I think we have to ask ourselves if we need to target investments and resources and scarce subsidies to those that are struggling the most,” he said.
There are a couple of good things came out of the rate hearing, from Hatfield’s perspective.
The utility agreed to set up a vulnerable customer liaison committee to identify who is struggling and tailor assistance for them.
The utilities board ordered N.B. Power to report on how that committee is doing every June, said Hatfield.
The purpose of the committee is to better understand and improve the customer experiences of those facing energy poverty or disabilities, said Couture.
It will be a forum for open dialogue and is expected to provide constructive input on how to address and respond to vulnerable customer needs and concerns, she said.
Hatfield is also pleased that the board said energy efficiency programs must have separate categories for customers with low incomes instead of lumping them in with applicants who have moderate incomes.
This was the first time the Human Development Council took part in a power rate hearing.
Hatfield acknowledged it was a lot of work, but said the council made an important contribution on behalf of low-income ratepayers. Other provinces do a better job of including them in the process, he said.
“We are pretty far behind in terms of civil society and advocacy,” he said.
Hatfield noted that during the hearing no one disputed the findings of the council’s researchers.
“There is an energy poverty issue in New Brunswick, and it’s one that’s going to require dogged determination,” he said.