As utility prices started to go up last year, we kept hearing “it’s time to lock in.” Locking into a contract seems to be the best advice the experts offer to rein in fluctuating prices and have more predictable bills. But, imagine that you can’t get on a contract. This is an issue that many people living on low incomes face. Previous non-payments, arears or bad credit may mean you’re not able to get on a fixed rate. Sue Gwynn, who chairs Enough for All’s lived experience advisory committee Poverty Talks!, gave us an overview of some of the issues at play.

Dealing with an overdue energy bill is a daunting, stressful and time-consuming problem. There are a number of things that make an overdue energy bill very difficult to deal with, starting with the fear of being cut off or being placed on a load limiter. Both scenarios mean you have only a small window of time before freezers and fridges start warming up and your food will spoil. Using a stove or large appliances is not a possibility on a limiter, but at least your pipes won’t freeze.

There are other issues though. Once you’ve been disconnected, you risk eviction because most lease agreements contain some sort of wording about tenants being required to maintain the property, including utilities. So now you’ve been disconnected, and you may have to look for another place to live in Calgary where, let’s face it, there aren’t very many options for rentals. If you have kids, you also risk Child Services removing your children from the home. This is not something that happens very often, but it is a fear of many living in poverty.

The help available has barriers and is often not enough           

In my experience, utility companies offer only a small amount of “help” with arrears. You can make a payment arrangement, but for the most part, this is very difficult to maintain. This is not because people want to break the payment arrangements but because your energy bill is already out of your ability to pay, so how could you manage paying your bill plus an extra amount for the arrears? This is the eternal loop people living in poverty get caught in every day. Basically, they make a payment arrangement to pay their energy bill knowing that their situation will be the same in two weeks or a month or two. But if given the choice of being cut off completely or banking on something changing in the next little bit, they bank on the change and make the payment arrangement, knowing either they will break the payment arrangement or they will have to skip paying something else, in whole or in part, to make it work.

Once a payment arrangement is made and broken, it is often a black mark that will prevent other payment arrangements from being made. So from that point onward, all bills must be paid in full and on time for anywhere between six months and one year. Through Utilities Consumer Advocate you can contact a mediator to help you negotiate, but at the end of the day if you have broken payment arrangements, there is very little they can do to help.

There are a few places you can go for help with utility bills. If you call 211, they’ll give you a list of agencies that may be able to help, but they limit to how many people they can accept every month. If you can’t get to them in the first few days of the month, there is very little chance they can help. This is in no way a failing on their part, rather it speaks to the high volume of need.

The emergency fund through Alberta Works is also available, but they have limitations as well. They offer one-time help. The other issue is the amount of money they can support with. $1,000 used to be plenty to pay off someone's arrears, but nowadays it doesn’t cover the amount of the arrears let alone the new bill or the reconnection fees. Also, depending on the agency you are trying to get help from, you may have to be able to explain why you are in arrears and demonstrate how you would be able to pay your utilities bill from then on, you may have to have children under the age of 18 in your home and those are just a few barriers to start with.

Some programs you have to be a client for six months before they can help you. You have to be willing to share tax returns and bank statements, explain your story multiple times, and the biggest barrier of them all is you have to have a disconnection notice. Why is having a disconnect notice the biggest barrier of them all? Because being able to see that you are heading for a problem and preventing it from happening is the best way to keep people housed, safe and in best mental health possible, but the helper system doesn’t allow for that. Once a disconnect notice is issued it must be paid within 10 to 15 days generally. Having to wait to get a disconnect notice means you have 10 to 15 days to apply for, be accepted by and have the utilities company receive confirmation that your bill will be paid by the helper agency and remember that most of the agencies can only help with an amount up to $1,000. By then, it is too late for most people to get the help that they need.

Disconnection and load limiters 

If you don’t get the help you need with your bill, you will be disconnected. In the winter months, roughly late October to April (but no one is really sure because the dates seem to be arbitrary and are at the mercy of each individual utility company), you are put on a load limiter. A load limiter restricts the amount of power your household can use in a few ways, meaning anything like a stove or a dryer that uses 220 volts will not work at all. Appliances like a microwave, which take 110 volts, might work for a short period of time. If the load limiter is tripped it cuts all power to the household until it is reset by pushing a button on the actual load limiter attached to the meter. The fridge, lights and small appliances like a coffee maker can be used, but using too many of them on at the same time will cause the load limiter to trip.

To get your power turned back on, you have to pay your bill in full, including the amount of the arrears and the current month's bill, and send in proof of that payment. In Calgary, as part of your reconnection, you have to agree to a service fee of anywhere from $135.00 to $250.00 to be added to your next bill as a fee for the reconnection of your services and you may be asked to pay a deposit along with the full amount of the arrears and current months bill, which could be anywhere from $300.00 to $500.00.

This is the process for electricity, but natural gas bills are just as much of an issue. Natural gas can be cut off and the majority of homes are heated with a gas furnace and most water heaters run on natural gas. That means despite a load limiter being placed on your home, it is possible you will still have no heat or hot water.

It's a tough situation for many right now. I’ve heard the saying, should I heat, or should I eat? With most choosing heat over food because of the risk of losing shelter or paying for arears is a price too high for many. I do often wonder if utilities could reduce their administration fees, if we eliminated the convoluted and demeaning process that struggling people are expected to maneuver. It would mean avoiding multiple calls with multiple staff and multiple processes. Food for thought as the government explores red tape reduction.

Resources

• VCC explored spiking utility costs and some possible approaches to avoid debt loading Calgarians living on low incomes.
• The School of Public Policy explored why power prices in Alberta are so high in a report from 2022.
• CBC explored issues around utilities. Check out their series.