Higher heating bills under fire
The Ford government’s plan to jack up home heating bills goes before a legislative committee next week as momentum builds against Bill 165. Hamilton city council’s resolution has been echoed by several other municipalities along with three Hamilton area MPPs and citizen groups both locally and provincially.
In an unprecedented step, Bill 165 will override a decision of the Ontario Energy Board (OEB) and fire the chair of the previously independent regulator. At issue is who will pay Enbridge to install gas piping to new homes and businesses.
In the past, the monies have been extracted from natural gas rates on the premise that payments by new users would eventually reimburse the approximate $4000 cost per new house. But after a year-long review the OEB concluded that the energy transition such as the increasing adoption of heat pumps – both by new owners and existing gas users – makes Enbridge’s forecasts of future gas consumption unrealistic.
Both Enbridge and the Ford government contend that the OEB ruling is unacceptable and will increase the cost of new housing. The estimated impact on the average user of gas is about $120 a year.
Enbridge is the exclusive Ontario supplier of natural gas (a product that is mainly composed of methane, one of the most powerful greenhouse gases affecting climate). It is also North America’s biggest pipeline company and recorded over $16 billion in profits last year.
The company is facing climate-related shareholder motions at its May 8 annual general meeting. One pushes it to reveal the amount of emissions from burning its fuel, and the other accuses it of misleading advertising. Company executives are opposing both resolutions.
Municipal councils from Guelph and Kingston to Whitby and Pelham have passed resolutions against the legislation. A free on-line April 10 webinar by Environmental Defence will provide detailed analysis. It is co-sponsored by the Hamilton 350 Committee and other citizen groups.
In the initial legislative debate in February, West Hamilton-Ancaster-Dundas MPP Sandy Shaw said “This government wants you to pay more so that Enbridge and developers don’t have to.” Her NDP colleague from Hamilton-Mountain, Monique Taylor also challenged the legislation, but there were no comments from either of the local Progressive Conservatives in the legislature – Donna Skelly and Neil Lumsden.
Hamilton-Centre Independent Sarah Jama is banned from speaking in the legislature for calling for a ceasefire in Gaza, but she issued a video statement on Bill 165, characterizing it as “the latest attempts to enrich those who already have more than their fare share”.
“We cannot allow developers and fossil fuel companies to dictate laws that will have such a destructive impact on our environment,” declared Jama. “The energy transition is underway and the Ontario Energy Board’s decision to require developers to pay the full cost of new gas installs up front in new homes actually reflects that.”
The legislative committee hearings will take place on April 8 and 9. Shaw is on the committee and Green Party leader Mike Schreiner is vice-chair, but Conservatives hold an overwhelming majority. Final approval of Bill 165 is scheduled by the government for Earth Day, April 22.
