Federal government considers national strategy to end energy poverty

Energy poverty is on the federal government’s radar, but addressing the high cost of home heating will require a highly tailored regional approach.

Earlier this week, Senator Mary Coyle introduced a bill that would create a national strategy to end energy poverty in Canada. The bill will now be debated and studied in the Senate, then the House of Commons.

If it manages to reach the end of that lengthy process and become law, the federal environment minister will have two years to create a strategy.

According to Efficiency Canada’s regional energy poverty data, 34 percent of households in the NWT are at risk of energy poverty, meaning a third or more of their housing costs go toward energy. 

Another standard definition that indicates a risk of energy poverty is if more than six percent of a household’s total income is spent on energy, Mark Heyck, executive director of the Arctic Energy Alliance, told Cabin Radio.

The Arctic Energy Alliance administers a range of energy efficiency programs in the territory.

“In a place like the Northwest Territories, where the cost of energy is very, very high – both on the electricity, but also the space heating side – and we have a pretty unforgiving climate, I would say probably most households, by that definition, would find themselves in energy poverty,” said Heyck.

The bill, known as Bill S-251, would require the federal government to set targets to reduce and eventually eliminate energy poverty, report on its progress every five years, and establish national metrics to measure energy poverty.

To achieve this, the federal minister would consult with other jurisdictions, Indigenous governments and organizations, companies, utilities and people experiencing energy poverty.

Heyck said the solutions to energy poverty look different depending on the region, meaning regional consultation and the struggles of small towns and isolated areas – not just Yellowknife – will be key.

If Bill S-251 becomes law, the experience of having to make tough decisions between heating, food and comforts must be front and centre in the national strategy, Heyck said.

No one-size-fits-all solutions

A recent federal announcement highlights that not all programs are a perfect fit for every province and territory.

On October 8, the federal government unveiled a $2-billion heat pump program set to begin early next year. This will be a great for many jurisdictions but likely won’t be a big difference-maker for NWT residents struggling with high energy costs, Heyck said.

“Heat pump technology is excellent and electrification is a big piece of how we are going to meet our climate goals – if we still have climate goals,” he said.

“I just think the context and the circumstances specific to the Northwest Territories would make it challenging to be widely deployed here,” he added, referring to the territory’s very cold winters and high cost of electricity.

Heyck said other parts of Canada, like the Yukon, have milder winters and “a much more integrated and comprehensive hydro grid” and may benefit more from heat pumps than the NWT.

In the NWT, the Arctic Energy Alliance is encouraging residents to have homes that are as energy efficient as possible. Switching to biomass or high-efficiency oil and propane heating systems can also help people save on energy costs and reduce greenhouse gas emissions.

The alliance is continuing to study the efficacy of different heat pumps. It is now looking at central-split heat pumps, which connect to a furnace to distribute heat throughout an entire home. 

Phase one of its research found mini-split heat pumps – mounted on the wall – work down to about -27C, but are inefficient or nonfunctional beyond that. The study found heating with wood pellets, high-efficiency oil or propane furnaces is cheaper, but Heyck noted that analysis was conducted well before more recent oil price shocks.

Heyck said he is “hearing daily” from people paying “astronomical prices” for heating oil.

Feds study northern affordability

High energy costs are being discussed in a House of Commons committee on northern affairs and also in the Senate. Heyck recently testified at the Indigenous and Northern Affairs parliamentary committee for a study on affordability challenges in the North. 

One of his main messages to MPs was to focus on lower-income people.

Heyck said the Arctic Energy Alliance offers many programs that aim to help low-income households, like chainsaw courses so people can safely harvest firewood to burn in wood stoves.

The alliance is also launching a Winterization Walkthrough Program, where staff will visit low-income households in different NWT communities, armed with supplies like window plastic and caulking. During the walkthroughs, staff will make minor improvements to people’s homes to help eliminate drafts and make them more energy efficient and comfortable, Heyck said.

“Relief is needed,” he said. “It should be targeted to those who are most in need.” 

Another key affordability challenge is the impacts of climate change, he added, pointing to the cost of fighting wildfires, the health toll of the associated smoke, and rising insurance premiums as a few examples.

Heyck said it’s important that a strategy on energy poverty prioritizes a clean energy transition, because burning fossil fuels is one of the primary drivers of climate change.

“We’ve seen it in the last eight months now, where being so locked into fossil fuels for so many of our energy needs makes us extremely vulnerable to the volatility of oil prices,” he said.

If done right, Heyck thinks the national strategy to eliminate energy poverty could help Canadians get off this energy price rollercoaster.