Following the news that the Ontario Energy Board approved Ontario Power Generation’s application to raise power rates in order to pay $18 million dollars in fines incurred by charging up to 60% interest on late payments, I emailed CBC Marketplace with a story suggestion. I propose an investigative piece on exactly how much utility companies across the country are actually making from interest on overdue accounts.
In my province, seniors, low income and even mid-income Albertans constantly struggle to pay exorbitant utility costs, especially power. Several years ago, a teacher I know in Calgary remarked that in winter months, the only time a number of her students were warm enough was when they were in school. And yet, these are the very people who routinely get another 24% – 30% added to their bills. The people who can least afford it!
For years, I’ve also suspected that utility billing cycles are not quite as random as the companies would like us to think. For instance, if your bill comes due on the 24th of the month, you live cheque to cheque and don’t get paid until the 30th, then you are automatically in an interest situation and I think this interest has become a gold mine for utility providers.
In our climate, I believe that heat and light need to be recognized as essential services and regulated as such. Higher than credit card interest does not belong on these services and it is time to stop penalizing people for being low income Canadians.
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