End ‘Energy Poverty,’ Activists Tell Candidates Ahead of Election

Activists Call for Action on Energy Poverty Ahead of Provincial Election

On Friday, activists called for the elimination of “energy poverty,” pledging to make the cost of electricity a key issue in the upcoming provincial election.

NB ACORN, an advocacy group for low- and moderate-income individuals, is pushing for the province to cover 30 percent of power bills for low-income customers and to implement a moratorium on winter power shutoffs.

“People should never have to choose between food, rent, electricity, and heating their homes,” said Peter Jongeneelen, co-chair of NB ACORN, to a crowd of about 15 people gathered outside Assumption Place in downtown Moncton.

Households spending more than six percent of their after-tax income on energy are often described as “energy poor.” According to a 2019 study, the Atlantic provinces have the highest rates of energy poverty in Canada. In New Brunswick and Nova Scotia, energy poverty affects 37 percent of households, compared to 38 percent in Newfoundland and Labrador, and 41 percent in Prince Edward Island. These rates are nearly double the national average of around 20 percent.

The protest occurred shortly after the Energy and Utilities Board (EUB) concluded hearings on NB Power's proposed rate increases. The utility is seeking approval to raise rates by 9.25 percent in 2024-25 and by a similar amount the following year. For residential customers, this would mean an annual increase of 9.8 percent. Final arguments are expected on Monday.

Earlier this year, the EUB approved interim rate hikes as NB Power awaits the outcome of its application. These increases amount to an average of 13.2 percent for residential customers, according to NB Power.

“These increases are unaffordable for New Brunswickers with low, moderate, or even medium incomes due to the high cost of food, inflation, rising rents, medical expenses, and other bills,” Jongeneelen said.

He criticized NB Power's payment plans, stating they don't go far enough. “You still have monthly bills coming in, and you’re falling farther behind. We need a system that offers real solutions,” Jongeneelen added.

“One thing we can all do is make our voices heard in this election,” he urged.

Jongeneelen noted that NB ACORN has been contacted by the provincial Liberals, Green Party, and NDP ahead of the October election, but not by the governing Tories. “They have not consulted with us at all,” he said, pointing to the Conservative Party's lack of response as indicative of their priorities.

The rally was attended by members of several groups, including the NB Coalition for Pay Equity, the NB Common Front for Social Justice, and the New Brunswick Federation of Labour. Local candidates, including Green Party candidate for Riverview Sarah Lord and NDP candidate for Moncton South Rebecca Rogers, were also present, along with Provincial NDP Leader Alex White.

During the week’s hearings, a Calgary-based consultant warned of the risks associated with higher rates, including a potential spike in disconnections for those already struggling. NB Power, however, emphasized that disconnections are a “last resort, especially in the winter months.”

Dominique Couture, a spokesperson for NB Power, stated that the utility exhausts “every option to contact customers and create payment arrangements that suit their unique situations to avoid disconnections.” She encouraged customers unable to pay their bills to reach out to NB Power to explore financial assistance programs.

Couture added, “We recognize these are challenging times for our customers, and we offer options to help manage overdue bills, including payment arrangements and awareness of assistance programs. We also offer equalized payment plans to spread annual bills into equal monthly amounts and various energy efficiency programs to help customers save energy and reduce costs.”

The proposed rate hikes have faced opposition from several social justice groups, including the NB Coalition of Persons with Disabilities, the Human Development Council, and the Madhu Verma Migrant Justice Centre, which has called on the EUB to “avoid plunging more people in New Brunswick further into energy poverty and poverty in general.”

These increases come as the provincial government has ordered NB Power to reduce its debt to 80 percent of the utility’s value by 2029, extending a previous 2027 deadline.

In its election platform, NB ACORN has also called for expanded tenants’ rights, increased financial support for people with disabilities, and the establishment of a publicly funded and operated drug treatment center as part of the healthcare system.

David Gordon Koch is a journalist with the NB Media Co-op. This report has been made possible partly by the Government of Canada, administered by the Canadian Association of Community Television Stations and Users (CACTUS).