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Electricity and Low-Income Consumers

The inability to pay utilities is among the leading economic causes of homelessness. According to Statistics Canada data, 14.4% of Ontario's population (1,611,505 persons or approximately 760,000 households) are considered low-income and face a daily struggle to pay for the basic necessities of life. They are particularly vulnerable to increases in shelter and utility costs. The majority of these low-income persons live in tenant households.

Low-income households in Ontario are more dependent on electricity for heating, and are more likely to live in energy inefficient homes. For information, go to LIEN website.

Electricity Security Deposits

ACTO has advised the Minister of Energy and the Chair of the Ontario Energy Board (OEB) that current hydro security deposit policies can adversely impact, or exclude, low-income households with respect to access to electricity service. ACTO also participated in two OEB proceedings on local distribution companies' (LDCs) Consumer Security Deposit policies. In our submission to these proceedings, We have recommended a system-wide mandatory exemption from security deposit requirements for low-income consumers.

This recommendation has not been adopted, but the OEB has made some changes to security deposit guidelines in the Distribution System Code in response to the concerns ACTO raised about low-income consumers; for example, the OEB has provided more flexibility for the payment of security deposits in installments.