Most Ontario residents will soon see an increase on their hydro bills thanks to a new program designed to help out the province's lowest income earners.
Hundreds of thousands of the province's lowest earners will soon see an estimated $30 cut to their monthly hydro bills, CTV Toronto's Ashley Rowe reported Wednesday.
Starting in January, 2016, the discount will apply to households that earn roughly $50,000 or less per year. It's estimated that approximately 500,000 low-income hydro customers will be eligible for the credit.
"In comparison to other energy consumers in the province, low income Ontarians spend a proportionately higher percentage of their income on electricity per month," Ontario Energy Minister Bob Chiarelli said at a news conference on Thursday.
For example, Chiarelli said households with an annual income of $20,000 often pay as much as 10 per cent of their total income on hydro.
"This needs to be addressed. Families and households should not have to choose between turning on the lights and putting food on the table."
The exact discount will depend on specific household incomes, with those earning the least getting deeper discounts.
"It should be targeted so that those most in need receive the greatest benefit," Chiarelli said.
Specific discount details have not been released, Chiarelli gave one example on Thursday: a family of four with a household income of less than $28,000 per year will see a $38 reduction of their hydro bill every month.
"We're pretty pleased and gratified that the government is moving on this," Theresa McLenaghan told CTV Toronto on Wednesday.
McLenaghan is a member of the LIEN Steering Committee, an anti-poverty organization that has been advocating for hydro assistance for years.
LIEN worked with the provincial government to come up with the initiative.
To make up the money, those who don't qualify for the discount will pay approximately 70 cents more per month, though the exact amount will depend on how many people sign up for the program.
"It should not create a significant burden for other rate-payers," Chiarelli said.
Ontario PC Energy Critic John Yakabuski said he thought the Liberals are singling out the lowest income earners at a time when bills are going up for all Ontario residents.
"Every time you do something on one side of the equation, you have to do something equal on another side of the equation and we'll have to see how that impacts people," he said.
"Everyone has been struggling with the hydro rates of this government."
Currently, Ontario hydro bills average approximately $150 per month.
The Ontario Debt Retirement Charge also expires at the end of the year, bringing another change to provincial hydro bills. Ontario hydro customers have been paying approximately $6 per month towards the project for the last 10 years, as part of an initiative meant to pay off a long-standing debt from Ontario Hydro successor companies.
At the same time, the Ontario Clean Energy Rebate expires at the end of 2015, which has been responsible for bringing hydro bills down by 10 per cent, or approximately $15. Ontario residents can expect their bills to rise as a result of the end of the rebate starting in 2016.
Chiarelli said the exact increase in 2016 will depend on tax credits and conservation programs that will be discussed at Queen's Park through the year. He said the government is looking for new ways to reward those conserving energy.
Taking into account the new program, the Clean Energy Rebate and the Debt Retirement Charge, Chiarelli estimated that a family of four with a household income of $28,000 would save $43.75 per month, or $525 per year.
He said he's expecting bills of higher income Ontario residents to go up less than $10 per month, with all three programs considered.
