Not all energy costs — or electricity bill rebates — are created equal in Ontario, according to the legislature’s budget watchdog.

Confirming the obvious, the Financial Accountability Office said Tuesday that home energy spending in the province hits northern and low-income Ontarians the hardest. But the independent FAO also highlighted how the Liberal government’s much-ballyhooed 8-per-cent hydro bill rebate would provide more than twice as much in savings to the rich as it would for the poorest.

“The burden, as measured by share of income, of home energy cost falls more heavily on lower income households in spite of their lower spending,” said the report.

Families who made less than $31,691, the bottom 20 per cent, spent an average of 5.9 per cent of their pre-tax income on electricity and natural gas in 2014, the FAO said. Meanwhile, households with incomes between $31,691 and $54,090 coughed up an average 4.3 per cent of their pay on energy.

For families in the wealthiest income bracket, the top 20 per cent making $126,123 and more, they spent only about 1.7 per cent of their salary on energy in 2014, the FAO found. These families, though, paid an average of $3,678 on home energy, and the lowest-income households paid $1,194.

“These differences result in part from differences in size of dwelling and in the use of appliances such as air conditioning, lighting and heating,” said the commentary. “However, as a share of income, higher-income households on average spend less than lower-income households.”

NDP Leader Andrea Horwath used the FAO report Tuesday in her attacks on the Liberal government’s sale of up to 60 per cent of Hydro One. Her energy critic, Peter Tabuns, noted low-income households were spending a share of their income that was about three-and-a-half times that of those in the wealthiest tax bracket.

“For a lot of people living in rural and northern Ontario, or people living on a low income, they already feel like they’re at a breaking point and if bills go higher, their kids won’t be able to afford a better life,” Tabuns added.

Energy Minister Glenn Thibeault responded by bringing up the government’s efforts to reduce those energy costs. Those initiatives include the Ontario Electricity Suppport Program, which can lop off up to $600 for eligible low-income customers.

The government has also introduced legislation that would give residential and small business consumers an 8-per-cent rebate on their electricity bills (at an estimated annual cost of $1 billion), and the FAO estimates it is worth more than double to higher-income families (who use more power) compared to the lowest-income households.

“For instance, using 2014 spending estimates to illustrate, the average household in the top 20 per cent of income earners would have saved $160 annually, whereas the average household in the lowest 20 per cent would have saved $63,” said the commentary.

In talking up the government's latest moves, Thibeault mentioned the Liberals' cancellation of its large renewable-energy procurement program. The decision, Thibeault said, will save families approximately $2.45 on their monthly electricity bill.

“We continue to find ways to reduce energy costs for consumers right across the province,” said Thibeault during question period.

The FAO found earlier this year that Ontarians' home energy costs are middle-of-the-pack when compared to the rest of Canada.

However, the new commentary from the budget office also shows northerners paid more than $2,500 annually from 2012 to 2014 for electricity, natural gas and on other fuels, such as heating oil. But in the Toronto region, for example, the budget office found the per-year energy cost was approximately $2,000.

“Numerous factors likely explain these differences including access to natural gas for heating, dwelling size and climate,” said the commentary. “Households in the north typically spend more on electricity and other fuel (heating oil), but less on natural gas.”

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Twitter: @geoffzochodne

Low-income Ontarians face bigger energy burden and smaller rebates, budget office says

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