New Brunswick

Soaring power bills have people on fixed income losing sleep. Options for relief are limited

A spike in December power bills has spurred an external audit of N.B. Power's billing system, and it's also left some wondering how they're going to afford their bill. 

More is needed to help those struggling with high cost of electricity, advocates say

Man in black coat walks past N.B. Power building
Many N.B. Power customers were surprised by higher than expected December bills. (Silas Brown/CBC News)

A spike in December power bills has spurred an external audit of N.B. Power's billing system, and it's also left some wondering how they're going to afford their bill. 

Peter Cote, who is retired and lives on a fixed income, is trying to figure out how he'll budget for an additional $100 in power costs. 

"I buy everything half-price at the grocery store," he said. "I do whatever I can do.

"It's anxiety, it's stress, like, it's killing me. I don't sleep."

As Cote and others wait to see what, if anything, will be found by the audit of N.B. Power, they still need to pay their bills. 

"Energy is not a typical commodity," Randy Hatfield, a longtime anti-poverty advocate, said. "It's what everybody requires in order to stay warm and to stay healthy.

"If it's not like any other commodity. I think we have to put in place measures to ensure that people won't be disconnected, they won't lose their power, they can afford it."

Randy Hatfield
Randy Hatfield, executive director of the Human Development Council, is calling for a low income subsidy on power bills. (Graham Thompson/CBC)

Many seniors living on fixed incomes, who may not qualify for other programs, find sudden bill increases difficult to deal with, said Bill Van Gorder, the Atlantic education and advocacy officer with the Canadian Association of Retired Persons. 

"It doesn't matter frankly whether your fixed income is up here or down here," said Van Gorder. "If it's fixed, you have no flexibility and this kind of increase in power costs is really getting to them."

When asked about available assistance, N.B. Power spokesperson Dominique Couture said in an email that the utility offers "options to help them manage their overdue bills, including payment arrangements and making sure they are aware of programs that might offer assistance."

WATCH | 'It's anxiety, it's stress': Worry over high power bills:

What’s available for people struggling with their power bill?

6 hours ago
Duration 3:33
As the province moves forward with an audit of surprisingly high December power bills, some are left wondering how they’ll afford the increase in energy costs.

A section on the N.B. Power website that details payment assistance options lists three government programs. 

The first is the emergency fuel benefit. It consists of a one-time payment of up to $550, intended to cover a household in the case of an emergency. It requires an application and an assessment of income and expenses.

The second program listed is the low-income seniors benefit, which provides an annual $600 payment for seniors who are receiving assistance through other federal programs. 

power meter
There are limited programs for those dealing with high power bills. (Silas Brown/CBC News)

Third is the rent bank, which gives grants to people who are at risk of losing their rented accommodations because of an unexpected financial hardship. 

N.B. Power does offer efficiency programs, with one geared to those with combined gross household income under $70,000 that provides free mini-split heat pumps and insulation upgrades. Other efficiency programs require an upfront investment from customers. 

Woman wearing glasses sits on a couch.
Jackie McGaughey is on employment insurance following a heart attack last year and has fallen behind on her power bills. (Submitted by Jackie McGaughey)

However, efficiency programs only help with future bills. Right now, some may have to turn to a payment assistance plan. 

For some, that's of little comfort. 

Jackie McGaughey is on employment insurance after having a heart attack last year. She said she's found herself falling behind with her bill payments. 

"When I called in to make arrangements, they wanted $300 and some," she said.

"I only get $750 every two weeks. What are you going to live on?"

Hatfield, executive director of the Human Development Council, intervened in N.B. Power's rate hearings last year to push for the development of a comprehensive energy poverty strategy.

Energy poverty is usually defined as having to pay more than six per cent of income on electricity. According to Hatfield, 13 per cent of N.B. Power customers missed at least one payment in 2023. 

He said repayment programs can still make life challenging for people, and he advocates a low-income subsidy seen in other provinces, such as Ontario. For some, high power rates can mean a choice to heat or to eat, Hatfield said.

"If you've got to pay your rent, you've got to pay your utilities, you've got to pay your taxes, what's left is meant to provide for all the other necessities and in this case, for too many people, it's not enough."

Woman in grey sweater talks into microphone.
Premier Susan Holt says it's unlikely additional help is coming for power customers. (CBC News)

Premier Susan Holt has encouraged those struggling with their bills to get in touch with her office or their local MLA. 

But Holt told CBC's Information Morning Fredericton on Friday that no additional help is coming for ratepayers should the audit fail to find any irregularities. 

She said a 10 per cent rebate on power bills took effect in January, so customers should see some relief on their next bill.

But right now, people like Peter Cote will still need to figure out how to pay their bills.

"I think all night long and I get up in the morning and I worry and I worry, 'What am I gonna do, what am I gonna do?

"I know I'm going to have to pay that bill."

ABOUT THE AUTHOR

Silas Brown

Video journalist

Silas Brown is a Fredericton-based video journalist. You can reach him at silas.brown@cbc.ca.