The final statement of the First Atlantic Conference Council held in Pictou, Nova Scotia on June 29 highlighted the need to improve energy security in the region. The premiers called on the federal government to support the long-term development of the Atlantic region and assist in the development of wind, solar, tidal energy projects, and small nuclear reactors.

However, the energy security issue that many Canadians in the Atlantic region are facing is not centered on long-term energy availability; it is about short-term affordability.

In the residential sector, three factors affect the affordability of energy:

First, energy demand, especially the energy used for heating water, appliances, lighting, and cooling homes.

Second, the price of energy sources that the household uses to meet its energy demand.

Most research on household energy affordability determines that the spending standard should not exceed 10 percent of total household expenses.

Applying the 10 percent threshold to the latest data shows that the number of households potentially suffering from energy poverty varies significantly across Canada by province.

The most used energy sources for heating in Atlantic Canada are electricity, fuel oil, and wood (unlike the rest of Canada, natural gas does not play a significant role in the region). This varies by province, with at least 50 percent of households in Newfoundland and Labrador and New Brunswick relying on electricity for heating, compared to at least 50 percent of households in Nova Scotia and Prince Edward Island relying on fuel oil.

Hughes says households earning less than $60,000 annually that rely on heating with oil derivatives could be in poverty this winter. Wood is considered one of the least expensive energy sources and is almost always used with electricity or fuel oil. 

Regardless of the province, data shows that energy costs for homes built more than 40 years ago can be three to four times higher than homes that use electric heating and were built in the past twenty years.

In all provinces, apartments usually require the least energy budget, followed by semi-detached homes, and finally detached homes. Detached homes are the predominant form of housing across all four provinces and typically require the highest energy budget.

Regardless of the energy sources used or building type, energy poverty limits short-term household choices as families have to use more of their income to cover energy costs or reduce energy consumption. For many households, the 10 percent energy poverty threshold is exceeded when wages do not keep up with the rising costs of food, goods, and transportation.

Households earning less than $60,000 annually and using oil derivative heating may fall into poverty unless there is a significant decrease in crude oil prices and inflation control over the coming months.

Fortunately, there is a short-term opportunity this summer to assist those households with the most urgent energy needs. Each province or regional agency responsible for reducing home heating costs will need to double their efforts to reduce energy demand in these homes. This may mean expanding current energy efficiency programs and upgrading or replacing existing heating systems.

If a household has to choose between heating and eating, it will face an emergency related to heating. Thus, provinces and municipalities need to prepare for heating emergencies by providing shelters for vulnerable families.

In some cases, households may resort to alternative heating methods such as unsafe operation of electric heaters or using poorly maintained chimneys, increasing the risk of house fires.

The Atlantic premiers are rightly concerned about long-term energy security in Atlantic Canada. However, they must not forget the urgent need for short-term energy security, which is no less important.

Edited by: Dima Abu Khair