1 provincial energy fund affordable and adequate energy is a necessity of life
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Provincial Energy Fund
Affordable and Adequate Energy is a Necessity of Life
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Agenda The Ask: A coordinated Energy Assistance Safety Net Provincial Commitment to Municipal Partnership Actual Funding Allocation Criteria and Guidelines: Emergency Energy Fund Accountability and Performance Measurement Energy Emergency Fund: When Theory Becomes Practice Catchment Variance, Loan vs. Grant and Equity Criteria, Assistance & Access Follow the Money Why haven’t More Communities Exhausted Funding? The Homeless Prevention Irony How Effective is the EEF at Addressing Energy Burden? Security Deposits and Reconnection Fees 3 Program Coordination Keys Fourth Element in Coordination Strategy The City of Hamilton: An Emerging Best Practices Model
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The Ask: A Coordinated Province-wide Energy Assistance Safety Net
In February 2004 STW met and presented a brief to the Minister of Community and Social Services calling for the creation of a province-wide energy assistance fund with equitable province-wide criteria (for copy of brief see STW’s website at www.sharethewarmth.org)
The Government of Ontario was asked to dedicate $2,000,000 for annual energy assistance services with municipalities and utilities required to match equally as a condition of access. Total funds available for assistance with all parties at the table ($6,000,000) using equitable Province-wide criteria
Effective LIEN lobbying led to a government commitment of $2,000,000.
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Provincial Commitment to Municipal Partnership Province transferred funds to 47 DSSABs,
providing less stringent guidelines to municipalities regarding its use than the Provincial Rent Bank unveiled at the same press conference (Rent Bank requires independent audit, etc)
Funding allocation based on total population, with a 30 per cent weighting factor for higher energy costs in northern communities.
Consequently, a significant number of community- based programs emerged over the last year with varying criteria and catchments
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Actual Funding Allocation
Service ManagerRounded Numbers
City of Brantford 20,320$ City of Cornwall 18,780$ City of Greater Sudbury 34,620$ City of Hamilton 84,080$ City of Kingston 23,770$ City of Kawartha Lakes 14,450$ City of London 69,150$ City of Ottawa 132,750$ City of Peterborough 21,580$ City of St. Thomas 13,990$ City of Stratford 12,640$ City of Toronto 425,570$ City of Windsor 64,310$ County of Bruce 10,960$ County of Dufferin 8,750$ County of Grey 15,280$ County of Hastings 21,590$ County of Huron 10,240$ County of Lambton 21,780$ County of Lanark 10,720$ County of Lennox & Addington (incl. Prince Edward)
11,040$
County of Northumberland 13,290$ County of Oxford 17,030$
County of Renfrew 16,320$ County of Simcoe 64,660$ County of Wellington 32,120$ County of Norfolk 17,950$ Regional Municipality of Durham 86,930$ Regional Municipality of Halton 64,350$ Regional Municipality of Peel 169,600$ Regional Municipality of Waterloo 75,210$ Regional Municipality of York 125,070$ Regional Municipality of Niagara 70,410$ Municipality of Chatham-Kent 18,470$ UC of Leeds & Grenville 16,570$ UC of Prescott & Russell 13,110$ District Municipality of Muskoka 11,840$ Algoma DSSAB 9,450$ Sault Ste. Marie DSSAB 16,980$ Cochrane DSSAB 19,010$ Kenora DSSAB 13,780$ Manitoulin-Sudbury DSSAB 7,930$ Nippising DSSAB 18,490$ Parry Sound DSSAB 8,840$ Rainy River DSSAB 4,930$ Thunder Bay DSSAB 33,630$ Timiskaming DSSAB 7,680$
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Criteria and Guidelines: Emergency Energy Fund Eligibility based on assessment of need and long-term
ability to manage energy costs. Catchments includes low-income Ontarians, including social
assistance recipients and people with fixed incomes. Fund not limited to electricity arrears, may also cover
natural gas, oil and other forms of energy. Assistance can include arrears, security deposits (avg.
security deposit $400.00) and reconnection fees (range from $20 to $70, or 120 plus if reconnection required on a weekend).
Max. assistance per household is equivalent to two months energy arrears, security deposits and reconnection fees, as required, except under exceptional circumstances.
Emergency assistance to be paid directly to the energy provider.
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Accountability and Performance Measurement Unlike its bigger sister fund, the provincial rent bank
which requires an independent audit with stringent guidelines and reporting, the Energy Emergency Fund provides municipalities with flexibility with respect to reporting and use of funds. Reporting requirements include:
• Number of households assisted
• Type of household assisted (i.e. O.W., O.D.S.P., other low income)
• Total expenditures categorized by program and admin
• Average dollar amount per household
• The balance in the fund at year end
(Dec. 31, 2004 – now extended until Dec. 31, 2005)
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Energy Emergency Fund: When Theory Becomes PracticeIn communities across the province, the energyassistance landscape changed radically over the last 10 months.
32% of communities are currently served by one program
34% are served by two programs 34% are served by three or more programs
More programs without effective coordination has increased instances of abuse (agency shopping, double dipping, etc.) while increasing agency workloads and program delivery costs to prevent same.
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Catchment Variance, Loan vs. Grant and Equity
77% of programs. assist non-socially-assisted low-income clients
6.5 % programs assist OW and ODSP only 6.5% programs exclude OW and ODSP
Loan vs. Grant 55% provide one-time grants 9% provide loans only 13% provide both loans and grants 23% did not provide this information
Depending on where you live in the province, your ability to access energy emergency funding without incurring greater debt is uncertain.
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Criteria, Assistance & Access
Though provincial guidelines were provided, universal criteria, equitable assistance or accessibility were not a requirement.
17% of programs required clients to be in threat of service term.
17% required income assessment to determine need 23% employed an application process 57% were willing to share criteria over the phone (for
inquiring applicant or agency) 26% refused to give out criteria of any kind (for inquiring
applicant or agency) 17% were unclear about the necessary criteria
Awareness of the programs’ availability and accessibility was a challenge for
low-income households in communities across the province.
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Follow the Money
4% of communities exhausted funds by September 19% of communities exhausted funds by
December 21% of communities exhausted funds by February 2% of communities have yet to use any of the
funds
If the need is so great, why haven’t more communities exhausted funding?
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Why Haven’t More Communities Exhausted Funding?
In many cases social services have elected to deliver EEF dollars to clients beyond their traditional catchments.
Low-income clients face barriers to access in the form of awareness; stigma and eligibility confusion are factors
In some cases Social Services are requiring the use of alternate sources of funding first (corporate, charitable, etc.) before accessing EEF
Should charitable or corporate dollars be used before government dollars? – Is that not another form of taxation, distorting government’s perception of the size of the need?
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The Homeless Prevention Irony Some large municipalities absorbed EEF
into their Homeless Prevention Program which can often only be accessed once in a life time.
If a household has accessed the program in previous years, it is often ineligible for EEF
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How Effective is the EEF at Addressing Energy Burden?
An effectively delivered EEF is critical to low-income household’s ability to meet their rising energy burden because unlike charitable or corporate funding,
EEF funding can be made an annual certainty.
Reconnection fees and security deposits (combined can account for up to $500.00) undermine the EEF’s ability to provide actual energy assistance
- flowing fewer dollars to fewer households
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Security Deposits and Reconnection Fees
– According to a Senior staff manager at a Big Six utility that recently met with LIEN – “Gov’t assistance for security deposits is like giving with one hand and taking with the other”
STW recommends a provincial clearing house for low-income security deposits through the use of modified letters of credit (businesses already use these instruments) to satisfy regulatory imperatives and to prevent abuse
Currently, security deposits paid by EEF or other funders can be claimed by households by closing their accounts.
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3 Program Coordination Keys to Effective Low-Income Energy/ Housing Stability
Coordinate and Adequately Fund Energy Assistance Programs throughout Ont. (Equity, Access, Accountability)
Coordinate Energy Assistance Clients with Highest Energy Burdens into Adequately Funded Energy Conservation Programs to ensure long term sustainability
Coordinate Energy Assistance and Energy Conservation Programs with Rent Bank Programs to ensure housing stability
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Fourth Element in Coordination Strategy
Effective regulatory and social policy measures which ensure an adequate and affordable energy supply for all Ontarians and low-income households specifically
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The City of Hamilton: An Emerging Best Practices Model Coordinated Energy Assistance
Programs
Coordinating Energy Conservation with Energy Assistance Programs
Coordinate above programs with Rent Bank programs
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OW/ODSP* Family with Children
Under 19 Years
OW/ODSP* Singles and Couples w/out
Children
Low-Income Individuals / Households
(exhausted OW or ODSP)
City of Hamilton, Public Health & Community Services Dept, OW/Special Income
(through client’s caseworker)
Share the Warmth
Families with ChildrenUp to $1,500 in assistance / yearDirect pay to utility companyFunding source: National Child Benefit Reinvestment Funds Family assessed for referral to home management and budget counseling. Trusteeship program for benefits considered.Once exhausted City of Hamilton assistance referred to Share the Warmth
Singles & Couples without ChildrenUp to $799 in assistance / yearDirect pay to utility companyFunding source: Water/Wastewater Budget (Utilities Arrears Program)Individual / couple assessed for referral to home management and budget counseling. Trusteeship program for benefits considered.Once exhausted City of Hamilton assistance referred to Share the Warmth
Max. - $600 in assistance / yrIf client is OW/ODSP recipient application process ensures they have exhausted available supportDirect pay to utility company; stop on shut-off notices sent immediatelyFunding source: (1) National Child Benefit Reinvestment Strategy; (2) Water/Wastewater Budget (3) Provincial Energy Fund
*OW = Ontario Works Program*ODSP = Ontario Disability Support Program.
Coordinated Programs: A Best-Practices Model
City of Hamilton
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Low-Income Energy Assistance/Conservation
In partnership with Hamilton Utility Corp., STW is developing a made-in-Hamilton Conservation strategy to leverage the highest energy burdened low-income households into a longer-term energy conservation solution
Key part of the strategy is to build into STW’s online application an energy conservation module to allow on-line application and data management of clients in need of the conservation services
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The Rent Bank ElementTraditionally, household energy costs were recognized as shelter costs.
Rent bank programs assisted with energy costs for
households seeking rent bank assistance but were often not coordinated with energy assistance/conservation programs
By building a rent bank module into STW’s online application, clients with housing stability issues (often the same clients seeking help at different times of year) can be served holistically with long term, added value for clients, reduced service delivery costs for agencies, more effective use of community resources/funds, and greater leveraging opportunities
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The End
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