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Many Canadians—and many Albertans—live in energy poverty

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From the Fraser Institute

By Tegan Hill and Elmira Aliakbari

Amid an ongoing trade war with the United States, which will increase prices for Canadian and American consumers alike, affordable energy is crucial to fuel our daily lives and power the economy. Unfortunately, energy prices have been rising for years, straining household budgets across Canada including in Alberta.

For perspective, from 2002 to 2023 (the latest year of available data) the price of energy (electricity, gasoline, etc.) grew by 105.5 per cent compared to 53.5 per cent for non-energy goods and services. This reflects a significantly higher increase in energy prices compared to other goods.

Why have energy prices increased?

While there are many factors, bad government policy has added fuel to the fire. The list includes the federal carbon tax, which remains in place for large industrial emitters. And Ottawa’s “Clean Electricity Regulations,” which mandate that by 2050, 100 per cent of Canada’s electricity must come from clean energy sources as wind, solar, hydro, etc. To meet this goal, Canada would need to build a massive amount of new infrastructure and technology, potentially driving electricity costs even higher.

Of course, Canadians pay the price for bad policy. Due in part to rising energy prices, in 2021 (the latest year of available data), 11.0 per cent of Canadians lived in “energy poverty”—that is, at least 10 per cent of their household total annual spending paid for energy-related goods such as electricity, natural gas, gasoline and other heating fuels. In Alberta, the number was 10.0 per cent. All told, that’s a lot people in energy poverty.

And energy poverty disproportionally affects lower-income households. For instance, in 2021 across Canada, 22.1 per cent of households earning $31,200 or less, and 20.7 per cent earning between $31,200.01 and $55,000, were in a state of energy poverty compared to only 1.6 per cent of households earning more than $124,000.

When the next federal government—whoever that may be—works with the provinces to develop energy policy, it should understand the significant level of energy poverty in Canada including Alberta, particularly among low-income households. Increasing energy prices further would likely increase the burden on families already experiencing energy poverty and those families at risk of falling into it.

Tegan Hill

Director, Alberta Policy, Fraser Institute

Elmira Aliakbari

Director, Natural Resource Studies, Fraser Institute

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Alberta

Pierre Poilievre – Per Capita, Hardisty, Alberta Is the Most Important Little Town In Canada

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From Pierre Poilievre

The tiny town of Hardisty, Alberta (623 people) moves $90 billion in energy a year—that’s more than the GDP of some countries.

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Energy

If Canada Wants to be the World’s Energy Partner, We Need to Act Like It

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Photo by David Bloom / Postmedia file

From Energy Now

By Gary Mar


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With the Trans Mountain Expansion online, we have new access to Pacific markets and Asia has responded, with China now a top buyer of Canadian crude.

The world is short on reliable energy and long on instability. Tankers edge through choke points like the Strait of Hormuz. Wars threaten pipelines and power grids. Markets flinch with every headline. As authoritarian regimes rattle sabres and weaponize supply chains, the global appetite for energy from stable, democratic, responsible producers has never been greater.

Canada checks every box: vast reserves, rigorous environmental standards, rule of law and a commitment to Indigenous partnership. We should be leading the race, but instead we’ve effectively tied our own shoelaces together.

In 2024, Canada set new records for oil production and exports. Alberta alone pumped nearly 1.5 billion barrels, a 4.5 per cent increase over 2023. With the Trans Mountain Expansion (TMX) online, we have new access to Pacific markets and Asia has responded, with China now a top buyer of Canadian crude.

The bad news is that we’re limiting where energy can leave the country. Bill C-48, the so-called tanker ban, prohibits tankers carrying over 12,500 tons of crude oil from stopping or unloading crude at ports or marine installations along B.C.’s northern coast. That includes Kitimat and Prince Rupert, two ports with strategic access to Indo-Pacific markets. Yes, we must do all we can to mitigate risks to Canada’s coastlines, but this should be balanced against a need to reduce our reliance on trade with the U.S. and increase our access to global markets.

Add to that the Impact Assessment Act (IAA) which was designed in part to shorten approval times and add certainty about how long the process would take. It has not had that effect and it’s scaring off investment. Business confidence in Canada has dropped to pandemic-era lows, due in part to unpredictable rules.

At a time when Canada is facing a modest recession and needs to attract private capital, we’ve made building trade infrastructure feel like trying to drive a snowplow through molasses.

What’s needed isn’t revolutionary, just practical. A start would be to maximize the amount of crude transported through the Trans Mountain Expansion pipeline, which ran at 77 per cent capacity in 2024. Under-utilization is attributed to a variety of factors, one of which is higher tolls being charged to producers.

Canada also needs to overhaul the IAA and create a review system that’s fast, clear and focused on accountability, not red tape. Investors need to know where the goalposts are. And, while we are making recommendations, strategic ports like Prince Rupert should be able to participate in global energy trade under the same high safety standards used elsewhere in Canada.

Canada needs a national approach to energy exporting. A 10-year projects and partnerships plan would give governments, Indigenous nations and industry a common direction. This could be coupled with the development of a category of “strategic export infrastructure” to prioritize trade-enabling projects and move them through approvals faster.

Of course, none of this can take place without bringing Indigenous partners into the planning process. A dedicated federal mechanism should be put in place to streamline and strengthen Indigenous consultation for major trade infrastructure, ensuring the process is both faster and fairer and that Indigenous equity options are built in from the start.

None of this is about blocking the energy transition. It’s about bridging it. Until we invent, build and scale the clean technologies of tomorrow, responsibly produced oil and gas will remain part of the mix. The only question is who will supply it.

Canada is the most stable of the world’s top oil producers, but we are a puzzle to the rest of the world, which doesn’t understand why we can’t get more of our oil and natural gas to market. In recent years, Norway and the U.S. have increased crude oil production. Notably, the U.S. also increased its natural gas exports through the construction of new LNG export terminals, which have helped supply European allies seeking to reduce their reliance on Russian natural gas.

Canada could be the bridge between demand and security, but if we want to be the world’s go-to energy partner, we need to act like it. That means building faster, regulating smarter and treating trade infrastructure like the strategic asset it is.

The world is watching. The opportunity is now. Let’s not waste it.

Gary Mar is president and CEO of the Canada West Foundation

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