1 LOW-INCOME ENERGY NETWORK Fighting poverty & pollution: Advocacy Update May 26, 2006 LIEN/AHAC Annual Conference, Peterborough Mary Todorow, ACTO for Low-Income Energy Network

2 Presentation overview 1. LIEN Advocacy Goals 2. Smart Meters/electricity sub-metering in multi- residential rental housing 3. Low-income rate assistance 4. LIEN at the Ontario Energy Board 5. Working with decision-makers 6. Connecting nationally with allies 7. Ontario Trillium Funding - full-time co- ordinator

3 LIEN Advocacy Goals, Ensure that people with low incomes have access to conservation and demand management programs. 2.Ensure that energy rates are fair and affordable for people with low incomes. 3.Ensure that people with low incomes have assistance to pay bills in cases of emergency. 4.Ensure that people with low incomes know the environmental impact of energy use and have the information necessary to conserve energy.

4 LIEN Advocacy Goals, Protect low-income consumers, including ensuring safe, adequate and equitable supply of energy. 6.Support an environmentally sustainable energy strategy for Ontario. 7.Ensure that LIEN has an accountability structure and the administrative capacity necessary to pursue its mandate.

5 Tenants and electricity use Currently:  most social housing tenants pay for utilities in their rent; only 18% of tenants pay electricity bills directly  most tenants in multi-residential private rental sector pay for utilities in their rent; estimated that 90% of multi-residential buildings are bulk-metered

6 What is a Smart Meter?  time-of-use and interval meters - record when power is used each hour of the day and electronically sends information to electricity provider  smart meters are intended to encourage consumers to shift electricity use to off-peak hours (overnight, weekends and holidays)  BUT, low-income households have least capacity to shift energy use (seniors, unemployed, families with children, disabled people) and are most likely to use electricity to heat homes and water

7 Who will get a Smart Meter?  Original target was to install 4 million smart meters for all Ontario customers by 2010 at a cost of $1 billion  Interim target of 800,000 meters in place by 2007  government had been unclear on whether individual Smart Meters would be installed in each apartment and condo unit in the province  initiative now includes condos (Bill 21, Energy Conservation Responsibility Act, 2006) and rental sector (Bill 109, Residential Tenancies Act, 2006)

8 What is electricity sub-metering?  Landlord buys electricity from Local Distribution Company or retailer and pays bulk meter bill  Landlord contracts with private supplier to install and operate sub-meters to measure individual in- suite electricity consumption

9 What is electricity sub-metering?  The supplier then bills tenants directly for in- suite electricity use, on behalf of the landlord  Tenant pays for: KwH used supplier’s administration fee & capital costs share of non-commodity charges on landlord’s bill, and security deposit

10 Who’s calling for Smart sub-metering? Landlords want to transfer volatile utility costs to tenants, argue that tenants and the environment will benefit Ontario government facing energy supply/demand crunch, promised to close coal- fired plants - want to promote “culture of conservation” among all energy consumers Suppliers meter and billing services companies see business opportunity in multi-residential rental sector

11 LIEN & ACTO: sub-metering not answer Zapping Tenants report released May 2005:  Not cost-effective  Not most effective conservation  Not fair to tenants Presentation at Bill 21 hearings & consultation on new landlord/tenant legislation

12 If sub-metering, can’t install without……. 10 recommendations in Zapping Tenants report including:  only sub-meter in electrically-heated buildings  green/feasibility audit as condition  split the financial incentive, fair rent reduction  mandate energy efficiency retrofits  landlord pays capital cost & admin fee  consumer protection and regulation  low-income conservation & demand management programs for tenants

13 Low-income rate assistance  Crucial component of LIEN’s recommended provincial strategy for reducing energy consumption and costs for low-income consumers  Ontario Home Energy Affordability Program - developed for LIEN by U.S. expert Roger Colton, released May 1st, filed at OEB  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

14 LIEN at the Ontario Energy Board Strategic interventions to promote objectives:  aggressive conservation, demand management and fuel switching programs to reduce the energy bills of low-income consumers.  rate policies and rate schedules which will lower the energy bills of low-income consumers to ensure equitable access to affordable energy.  terms and conditions for utility service (e.g., security deposit policies, sub-metering policies) that are in the best interests of low-income consumers. Interventions with assistance of consultants and counsel

15 LIEN at the Ontario Energy Board  Regulated Price Plan  Written hearing/proceeding on whether electricity sub- metering should be regulated by OEB and in what way  Generic Electricity CDM Proceeding  Cost Allocation Review  Natural Gas & Electricity Interface Review  Union Gas rate hearing, DSM plan for  Electricity Distribution Cost Allocation Review  OEB Generic Gas Storage and Related Matters

16 Working with decision-makers  May 2005 meeting with Parliamentary Assistants’ working group on provincial low-income energy strategy  June 2005 meeting with Peter Love, new Chief Energy Conservation Officer  November/December 2005 meetings with Minister of Energy/MMAH re: Smart sub-metering in multi- residential rental sector  February 2006 meeting with new Energy P.A., Jeff Leal  March 2006 presentation to OPA Board of Directors

17 Connecting nationally with allies  With Nova Scotia-based Affordable Energy Coalition (AEC) submitted recommendations to federal government to ensure maximum success in delivery of EnerGuide for Low-income Households (EGLIH) and Energy Cost Benefit  now working with AEC, Green Communities Canada and other allies to restore EGLIH program

18 Ontario Trillum Funding support  LIEN successful in obtaining 3-year funding to hire full- time co-ordinator (Zee Bhanji) to help carry out LIEN’s advocacy goals and workplan “to mitigate the impact of high energy prices on low-income households and to ensure implementation of effective energy conservation programs and policies” LIEN Currents monthly bulletin Regular updating of LIEN web site Annual and regional conferences

19 Information about LIEN & its work We want to develop and implement a comprehensive, workable low-income energy conservation and assistance program in Ontario. Our reports and media release packages can be accessed at the LIEN web site - and also at: