OEB Consults on Low Income Energy Consumer Issues

September 2008

The Ontario Energy Board has initiated a consultation to examine issues concerning low income energy consumers and their use of natural gas and electricity. The consultation has drawn the attention of in excess of 50 parties representing a very broad range of interests; from small and large volume customer groups to environmental groups to social service interests to energy marketers and energy utilities.

Part of the impetus for the consultation stems from a Divisional Court decision earlier this year, which held that the Board has jurisdiction to consider "ability to pay" when setting energy utility rates. The Court's decision did not go so far as to say the Board should exercise its jurisdiction, and the Board itself has made it clear that it has not decided whether or how it should exercise the jurisdiction.

The Board is inviting participants in the consultation to provide their views on these jurisdictional questions within an examination of a broad range of potential regulatory policies and measures to address the specific needs of low income consumers in relation to their energy use.

The types of issues and questions that the Board wishes to explore include: the definition of a low income energy consumer, the implementation of special rates or rate structures for this group of customers, customer service issues such as payment period and disconnection rules, arrears management programs, conservation and demand management, and emergency assistance programs.

One of the issues that will be of interest to all participants is program funding. On this issue, the Board is investigating whether or not the cost of low income energy assistance programs should be recovered through distributors' electricity and gas rates. As well, it has asked parties to comment on issues that could arise if the costs of such assistance programs are shifted to other classes of ratepayers.

The first step in the consultation process was a stakeholder conference which began September 22.  Its purpose was to gather information that will allow the Board to get a better understanding of the issues related to low income energy consumers, and to assist in its consideration of the need for and nature of policies or measures to address the issues.