HST off Home Heating - Bad Idea!

Dear Ms. Horwath, I applaud your politicking toward getting a better budget for Ontarians.

My main concern is your proposal to take the HST off of home heating. This is tantamount to subsidizing cheaper energy at the expense of revenues earned by the government elsewhere.

Moreover, a substantial majority of Ontario homes are heated with natural gas which is at devastatingly low prices and homeowners are seeing their heating bills go down while their vehicle fuel bills go up; there’s no need and no pressure on home heating as there is on municipal water and electricity.

Homes heated with more expensive propane or oil have seen their home heating costs rise due to the pricing pressures on the underlying commodity - oil. Moreover, these fuels are much more polluting and the energy intensity of those homes is much higher. Where natural gas is not available, these homeowners should consider switching to geothermal which can have a pay back as low as 5 years when switching off oil. Did you know 2 of North America’s largest geothermal heat pump distributors are located in Ontario?

Basic economic theory dictates that as prices rise economic players look for alternatives and substitutes which means investing in new technologies. Higher energy prices are in fact required to stimulate investment in Ontario’s housing stock through efficient technologies. These include made in Ontario products like insulation and lumber and require Ontario skilled trades like electricians and gas fitters.

Not only that, but the McGuinty government (once progressive supporters of the green economy, now nothing more than market manipulators) have abandoned all support for the energy retrofit industry threatening hundreds of Ontario businesses and thousands of green economy jobs.

Rising energy prices are required to stimulate investment in low carbon technologies. Natural gas commodity prices are so low large producers are halting new production  due to a glut of natural gas supply in part from new extraction methods (fracking).

The Ontario government has already abandoned the green economy, could you be a voice for it? Can you help make our homes more efficient, more valuable, safer and more comfortable? Will you support policies that drive investment and balance our provinces books? Or, will you stick to politically ‘smart’ policies that are economically stupid and wholly unnecessary?

Your choice, I’ll be watching.

Kitchener Home Energy Grants

The City of Kitchener has a fantastic fund called the “Local Environmental Action Fund” that invests city monies in projects that improve the ‘environment’. Through the 2011 funding cycle $500,000 was allocated to help owners of homes in Kitchener, built prior to 1970 insulate their homes by doubling ecoENERGY grants.

Except. This grant is not for Kitchener homeowners, it’s for customers of REEP that have homes built prior to 1970 and are insulation deficient. You see, while the standard upon which this grant is based is one defined by Natural Resources Canada (NRCan) it’s only the local charity that is granted access to the grants.

This is blatantly anti-competitive.

Over time REEP continues to lose share in the local energy evaluation market. They appeal annually for more of your tax dollars to subsidize a product offering their competitors actually generate profits from.

I am a for-profit energy advisor in Waterloo Region. 70% of the homes I evaluate are in Kitchener, over half of those are built before 1970. I used to have the enviable job of evaluating homes and providing grants to help homeowners address deficiencies that save on energy bills, reduce emissions, increase comfort and increase resale value. Now, I still do that, but with a guilty conscience since I know there are more grants available, if only the homeowner had chosen a less responsive, less professional or inefficient service organization - REEP. This is not right.

Kitchener City council, for the first time in over 1800 evaluated homes has created a situation where I no longer represent the best interests of the homeowner - that’s shameful.

The energy evaluation in Canada is mandated by a standard set by NRCan. All service organization operate within this standard and it is the basis for all grant applications.

This initiative sets a dangerous precedent in the City of Kitchener, which HAD been making great progress at establishing itself as a green economy destination. It says that charities are better than viable businesses and that history is more important than customer satisfaction. These are dangerous consequences for the overall green movement which needs to be based on smart economics and ethical business practices.

It serves all citizens of Kitchener to help pressure our local government to open this grant up based on the NRCan standard and age of home, not the service provider. Otherwise this grant is for REEP, not homeowners or our shared environment - that must be clear.

Consider e-mailing Mayor Carl Zehr or Kitchener City Council (e-mails below) asking that they tolerate competition for service, they respect homeowners and the law.

Some talking points you may consider:

  • Energy evaluations exist in a for profit, results driven marketplace
  • Energy evaluation standards are set and maintained by NRCan - there are over 15 service organizations that service Waterloo Region
  • Does Kitchener want to be known for green economy solutions or charity?
  • Increasing insulation can reduce home energy costs by 50%
  • Insulation materials are made locally and employ local installers

Some things you should know about REEP:

  • REEP does not maximize grant opportunities - specifically the Ontario Ministry of Energy initial rebate. Then charge customers more on grant application visits.
  • REEP does not adhere to NRCans standards, maintaining a list of “master contractors”. Service organizations should represent unbiased third party advice and not promote specific contractors or products by name.
  • REEPs office on Frederick St has a low efficiency air conditioner and original wood framed windows with single panes and wood storms - they don’t practice what they preach.
  • Calling REEP you get an answering machine, a testament to their commitment to customer service
  • REEP schedules your appointments around their schedule, responsive service providers schedule your appointment around your schedule
  • REEP wastes tremendous amounts of time in the home - their evaluations are known to take up to 4 hours

There’s a huge opportunity for a results driven organization to fill the void, the City of Kitchener ought to support this sort of competitive innovation towards solutions, not handouts. The city should not so clearly identify themselves as supporters of such a blatantly anti-competitive program. In fact, with so much of our tax dollars going to REEP in operational grants, and with other profit motivated organizations chomping at the bit, this must be a good time to see if REEP can compete.

If you want a Kitchener where citizens are free to make their own customer choices for their own home. If you want a Kitchener that values sensible economics and fair competition. If you want a Kitchener that supports innovation, productivity and efficiency, then you need to ask our leaders to allow all eligible homeowners access to this grant pool and tolerate access from any NRCan licensed service organization.

If REEP can’t compete, then so be it. I’m tired of my property taxes going to subsidize an organization that is favored in such an uncompetitive fashion that it threatens my very ability to pay those increasing property taxes. At the same time as contractors and homeowners migrate away from the service to more responsive customer driven providers of the same standard service.

/rant

Mayor Carl Zehr
carl.zehr@kitchener.ca

Office of the Mayor & City Council
council@kitchener.ca  

GOOD: Selling Consumers on Energy Efficiency

Surely these will make their way into a Pareto Energy blog post, or be incorporated into behavior modification aspects of a Pareto relationship.

Quotes are from Andrea Learned, author of Don’t Think Pink from an interview with GOOD:

Energy efficiency “sells” because of varying equations of cost savings added to environmental benefits, wrapped in the essence of homeowner as good citizen.

…women seem more likely to want to share their experience with others (even in larger public forums) once they “get” and engage with efficiency measures in their own homes.

Even if the women they are trying to reach are moms, it’s not necessarily about the nurturing, family-centeredness, or health aspects of the offering. It can be more about how to make smart, practical household-management decisions. 

Lowfoot - You Should Join

A Pareto Energy blog on a really interesting business concept - Lowfoot.  They LITERALLY pay you (cash now, token economy later) to use less energy.

You’re bills go down, your income goes up. What’s not to love!?

Oh, if you join and submit a conservation tip that gets the most number of votes, you win $1000.  If you don’t have any ideas, vote for mine!

Source: lowfoot.com