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