DISCOUNTED RATES HELP CURB EMISSIONS
Let’s keep the residential and small farmers electric discount rate (second block).
Currently, electricity consumers get a discount for any amount used over 2,000 kilowatts per month. This discount is one of the reasons that heat pumps are a success story.
The Island Regulatory and Appeals Commission (IRAC) is now studying the rate application by Maritime Electric and one of the options is to eliminate the discount. This would increase the costs for some consumers and farmers.
In 2010, annual greenhouse gas emissions (GHG) were increasing to 2,000,000 tones and electricity costs were rising. The Liberal government of the day was very concerned about these increases. We believed that lower electricity rates would encourage people to convert from oil heat to electric heat by using heat pumps, which is considerably more efficient than just electric heat.
The government worked with Maritime Electric to reduce electricity costs for all Islanders. By working together, we were able to reduce electricity rates by 14 per cent. This reduction, along with the discounted rate, which was part of the law, made heat pumps more affordable.
While government incentives are driving the switch, the discounted rate is still a factor for homeowners to make the switch to heat pumps. Between the implementation of the discount in 2011 and the end of 2015, P.E.I. reduced our annual GHG emissions by 23 per cent or 460,000 tonnes into the atmosphere. That is why continuing with the discount rate is so important.
Prince Edward Island has always been a leader when it comes to addressing climate change. We’ve been able to take some monumental steps towards our GHG emissions goals, largely taken with the co-operation of all political parties. While the present government is to be commended for its efforts to support Islanders through its free heat pump program and rebates while expanding on other programs, they must not lose sight of the impacts of lower electricity rates and work towards maintaining the discounts that are in place.
Together, we can reduce our dependence on oil all the while allowing Islanders to keep more money in their pocket. Climate change is happening, we are running out of time, and we must make change now.
If you don’t believe me, hear what Islanders are saying. https://youtu.be/jbdlmb3q9we Richard Brown, Charlottetown, P.E.I.