Bill 165 will fuel climate change

Premier Doug Ford’s Bill 165, Keeping Energy Costs Down Act, is the epitome of doublespeak.

It will actually increase energy costs for gas customers. It will lock in outdated technologies for new buildings. And it will fuel climate change harming the physical and mental health of people across the country.

Last year, the Ontario Energy Board (OEB) rejected Enbridge’s request to finance new gas connections by increasing rates across their customer base. This request is not new.

For years, Enbridge has subsidized new connections to its gas lines by spreading those costs over their customer base and over time.

The rejection, however, was new. The OEB determined Enbridge’s proposal did not reflect the need to transition away from fossil fuels such as natural gas, and risks leaving ratepayers across Ontario paying for new gas connections that are soon to be either stranded, or underutilized, assets.

Ontario’s Energy Minister, Todd Smith, vowed to override the OEB’s decision and is now doing so with Bill 165.

Forcing customers to subsidize gas connections for new buildings is irresponsible because there are alternatives that are less expensive and climate friendly. The Canadian Climate Institute estimates, for example, standard heat pumps that run on electricity are the least expensive home heating option in most Canadian cities.

Also, while estimates vary on the timeline, there is agreement all around that we will have to transition away from natural gas sooner or later.

So, why would we lock-in new homeowners and others, on a fuel that must be phased out?

Cold climate air-source heat pumps, that can operate to temperatures as low as -25 C, can replace conventional heating systems in buildings. Run on electricity, heat pumps are much more efficient than both natural gas furnaces and baseboard heaters.

They use up to 70 per cent less energy than conventional heating systems so they can cut energy costs.

Heat pumps have the added advantage that they can cool our buildings in the summer months to protect us from increasing temperatures and longer heat waves.

As more people opt for heat pumps and the energy transition proceeds, Enbridge will have fewer customers to cover the new gas connections that Bill 165 will permit. And since heat pumps have higher upfront costs, the remaining customers are likely to be those who live on lower incomes.

Bill 165 will also fuel climate change. Extreme events, such as wildfires, heat waves, and floods, that have become more frequent and more intense with climate change, are already costing us in many different ways.

Buildings are a major source of climate emissions in Canada. In the Greater Toronto and Hamilton Area, which is home to about 20 per cent of Canada’s population, buildings are responsible for nearly one half (44 per cent) of all climate emissions.

Most of those emissions come from the burning of natural gas to heat our buildings. These emissions are no longer necessary.

Instead of forcing natural gas customers to subsidize hookups for new buildings that will increase energy costs, tie new buildings to dated technology, and fuel climate change, the Ontario government should listen to its independent experts and update our building codes to move us into a new era that protects people, the planet and our pocketbooks.