VANCOUVER, BC, March 21, 2025 – A new Fraser Institute study reveals that over 20% of Canada‘s households with incomes below $55,000 are energy poor. This means they allocate 10% or more of their budget to electricity, heating, and gasoline. The Fraser Institute is a Canadian public policy think-tank that is independent and non-partisan.
Elmira Aliakbari, director of energy policy studies at the Fraser Institute and co-author of the report, stated that many Canadians spend a large portion of their income on energy, despite Canada‘s potential for affordable energy.
The study indicated that in 2021 (the latest year with available data), Atlantic Canada had the highest energy poverty rates at 24.6%. The national average for all households is 11.0%.
British Columbia has the lowest rate of energy poverty at 8.1%, followed by Ontario (9.0%), Alberta (9.8%), Manitoba (11.2%), Quebec (11.9%) and Saskatchewan (13.9%).
Energy poverty significantly impacts lower-income Canadians. Of households earning less than $31,200, 22.1% are energy poor, allocating at least 10% of their budget to electricity, heating, and gasoline. For households earning between $31,200 and $55,000, the figure is 20.7%.
In contrast, only 1.6% of households earning over $124,100 are considered energy poor.
Aliakbari cautioned that policies increasing the price of oil, gas, and electricity will push more Canadian households into energy poverty, exacerbating financial difficulties for vulnerable households.
Incidence of energy poverty by income group in 2021
(percent of households)
|
$31,200 or less |
22.1 % |
|
$31,200.01-$55,000 |
20.7 % |
|
$55,000.01 – $83,800 |
13.1 % |
|
$83,800.01 – $124,100 |
6.7 % |
|
More than $124,100 |
1.6 % |
|
The Fraser Institute, with offices in Vancouver, Calgary, Toronto, Montreal, and Halifax, is a Canadian public policy research and educational organization. It is also connected to a global network of think-tanks in 87 countries. Its goal is to improve the quality of life for Canadians and future generations by studying and communicating the effects of government policies on their well-being. The Institute maintains its independence by not accepting government grants or research contracts. Visit
SOURCE The Fraser Institute
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