Task force recommends generous energy discounts for low-income Nova Scotians

A Nova Scotia group advocating for cheaper home energy costs is recommending sweeping discounts for low-income earners.

The Nova Scotia Energy Poverty Task Force is urging the province to fund a program that would give low-income households a 50 per cent cut on their home heating fuel and electricity bills.

Economist Roger Colton of the firm Fisher Sheehan and Colton of Massachusetts authored the report. He's designed energy rebate programs in the US and Canada.

"In 40 years experience in more than 40 jurisdictions across North America I've never seen an energy affordability situation as bad as Nova Scotia is in right now," Colton said.

It would be the province though — and not companies such as Nova Scotia Power — who would cover the cost of the discount.

Colton estimates that if 20 percent of those who qualify successfully apply for the discount it would cost the province $16,901,220 annually. That figure would jump to $46,300,800 with a 70 per cent participation rate. The additional cost to the government would be about $11 million to $30 million above what they already spend on the Heating Assistance Rebate Program for those who participate in the new program. 

NDP MLA Susan Leblanc is the party's environment and climate change critic. She said the program Colton is proposing is needed.

"It might be generous, but it's absolutely necessary," she said. "The statistics of how many people are living in energy poverty in Nova Scotia are astounding and troubling. I see it every day in my office."

The report says 43 per cent of low- or moderate-income households in Nova Scotia spend at least six per cent of after-tax income on home energy. It says this is one of the highest rates in the country.

Debt forgiveness

Among the other recommendations from the report is an "arrearage management" program where utilities would be asked to forgive part of any delinquent bills qualifying ratepayers have accumulated, to make their repayments affordable.  

"NSP will be asked to help fund, significantly, the arrears management program on the theory that those dollars of arrears are dollars that they're never going to collect in any event," said Colton.

As for the entire proposal, Colton said the important thing about Nova Scotia Power is that it didn't say no. Colton said the man the company sent to sit on the task force was "very supportive."

"I would be out of place to say that he speaks for the company. He answers to NSP management," Colton said.

Nova Scotia Power has so far shown no inclination to forgive any unpaid electric bills. On the contrary, the utility has successfully applied for rate increases totalling 14 per cent in the past two years and is set to make a similar application in 2025. The increases are to cover the costs incurred during severe storms.

The company says it has a dedicated low-income advocate who works with charitable organizations and the provincial Department of Community Services to find solutions for individual customers facing arrears.

The task force presented the recommendations to the Houston government in late April. The report was released publicly on Tuesday.