TORONTO—Rising energy bills are of almost universal concern these days, but as the January 1, 2016 rate hike looms, concerns are rising that those measures in place to shield the most vulnerable citizens from the rise in energy costs are not being accessed in sufficient numbers.
“We tried to get it so it would be automatic for those on Ontario Works and the Ontario Disability Support Program (ODSP), but that did not come to be,” noted Manitoulin Sudbury District Services Board (DSB) CAO Fern Dominelli. He noted that Ontario Works and ODSP staff have been encouraging and assisting their clients to apply for the rate reduction on their bill.
DSB will assist anyone in applying for the reduction, noted the CAO.
“It’s important,” he noted. “Unfortunately, too many people are going to realize just how important when they open their bills in January.”
It takes up to eight weeks for the application to receive the rate reduction on a consumer’s bill, and the reduction is not retroactive, meaning that if low income households don’t apply until January, they won’t see a reduction in their bill until nearly spring.
“I have no answer as to why there is such a low uptake on the lower rates,” said Algoma-Manitoulin MPP Mike Mantha, “unless it is to say that perhaps the government has not made it a high enough priority to get the word out to those who need it the most, maybe the elderly or people who do not have access to the Internet, to make an application. It’s great to come up with these plans, but if you don’t make it easy for those who need it the most to know about it or can’t apply because of distance or a lack of technological knowledge, than it isn’t of a lot of use.”
Mr. Dominelli noted that the DSB offices are designated to assist with those who need to make a manual application or to help access and navigate the application website (and particularly for those who have not filed tax returns last year and who therefore must apply manually) in order to get their applications in. “We will do whatever we can,” he said.
Electricity prices in Ontario officially increased on November 1 and the rate hike is expected to push up the average household hydro bill by 3.4 percent. The Ontario Energy Board (OEB), which sets the cost of electricity in the province, announced the rate increase on October 15 for winter months, which will impact most households and small businesses. Effective November 1, the price for off-peak hours went up 0.3 cents to 8.3 cents/kWh, the price for mid-peak hours went up 0.6 cents to 12.8 cents/kWh and the price for on-peak hours has gone up 1.4 cents to 17.5 cents/kWh.
Including the November 1 rate hike, the on-peak price of electricity has jumped 77 percent since smart meters were introduced five years ago. In November 2010, the price of electricity on-peak was 9.9 cents/kWh.
Compounding the issue is that the Ontario Clean Energy Rebate, which reduces energy bills by 10 percent, is due to end on January 1.
The OEB has said that several factors are driving recent rate hikes, including increased costs related to Ontario Power Generation’s nuclear and hydro-electric power plants, as well as costs from renewable sources such as wind and solar.
According to Karen Evans, director, corporate communications, the Ontario Electricity Support Program began accepting applications just over six weeks ago. “To date, more than 47,150 applications have been submitted,” she noted. “That’s about 14 percent of our target enrollment for the first year.”
“This is an excellent response to a program that has been open for such a short period of time,” noted Ms. Evans. “The OEB estimates that it will reach 60 percent enrolment (about 342,000 of the approximately 570,000 eligible) by this time next year.”
Ms. Evans noted that there is no deadline for applications, adding that it is an ongoing program and that seniors and others on low fixed incomes who require assistance in making an application for the lower rates are encouraged to contact their local DSB offices or First Nation Ontario Works office to access the application.
The OESP was developed by the Ontario Energy Board to lower electricity bills for low-income households through an on-bill credit, wrote Ms. Evans.
Starting January 1, 2016, eligible consumers will receive an on-bill credit of between $30 and $50 a month.
The program was designed with input from social service agencies, utilities, low-income advocates, First Nations and Métis communities and the OESP could benefit more than 500,000 low-income Ontario households.
“Customers who qualify for the OESP will be eligible to receive on-bill credits for two years regardless of when a customer applies and their credits begin,” noted Ms. Evans. “They will then be able to re-apply.”
The OPG communications director added that applicants 65 and over and those receiving a Canada Pension Plan disability pension will be eligible to receive on-bill credits for five years before re-applying. Customers who apply after January 1, 2016, or whose applications are resubmitted close to January 1, will still receive on-bill credits for two years.
