“I’m going to say probably half of their monthly check is paid to power.”
Chief Mark Fox, Piapot First Nation
“You can’t make ends meet, when all your money is going to [energy] bills.”
Chief Edwin Ananas, Beardies First Nation
“We’ve been calling it heat poverty because, that’s what it really is. Our families shouldn’t have to make a choice between food and heat.”
Chief Christine Longjohn, Sturgeon Lake First Nation
Many Canadians think about energy security as a geopolitical issue – but this is because they already have access to reliable, affordable energy.
In our latest report, The Other Energy Security: Addressing Energy Poverty in Canada’s Indigenous Communities, researcher Heather Exner-Pirot examines the issue of energy poverty and particularly high heating costs in Indigenous and remote communities in Canada. Many First Nations have been working with local utilities, provincial/federal governments, and others to access natural gas as a low-cost heating option. Unfortunately, too often these efforts hit roadblocks – jurisdictional, ideological and financial – that have kept many First Nations people on reserve living paycheck to paycheck because of high energy costs.
This report sheds light on this hidden issue, providing data on the disproportionate energy costs experienced by these communities from a national perspective. What is critical is that it doesn’t have to be this way. A renewed focus by the federal government on energy affordability and reliability can support needed recalibrations in existing energy programs for First Nations and rural Canada to address energy poverty for the long-term.
Key Takeaways:
- Over 280 remote communities, home to approximately 200,000 people, remain off-grid, relying primarily on diesel for electricity and heating. These remote communities in Canada – Indigenous and rural – experience significantly higher energy costs than urban areas. According to Ecotrust Canada, a typical on-reserve household spends three times more of their income on energy than the average Canadian household and the Canadian Urban Sustainability Practitioners (CUSP, 2019) report found that 23% of all Canadian households and 26% of Indigenous households experience energy poverty.
- According to Statistics Canada, Natural gas is Canada’s most affordable and widely used heating fuel, with 51.5% of households relying on it. Despite this, many Indigenous communities remain disconnected from existing natural gas pipeline infrastructure, even when they are located just 5 to 20 kilometers away from a pipeline. Access to natural gas would dramatically lower energy costs. In Ontario, households that switched to natural gas saved between 50-70% on heating costs (Ontario Energy Board, 2020).
- Federal energy programs, such as the Indigenous Off-Diesel Initiative and Northern REACHE Program, focus on renewable energy projects like wind and solar. However, many Indigenous communities cannot fully rely on renewables due to infrastructure limitations and extreme weather conditions, making them dependent on diesel and propane. Natural gas is a viable solution for many of these communities – the Ontario Energy Board estimated that expanding natural gas to rural communities would reduce emissions by 29 tCO₂e annually per 210 customers.
- Many First Nations leaders emphasize that “energy poverty is heat poverty“, affecting their communities’ well-being and stress that “natural gas is the new water“, drawing a comparison to past struggles for clean drinking water. Indigenous communities want decision-making power over their energy future with other orders of government as a partner. The paper calls for policy reforms that treat all fuels equally, ensuring Indigenous communities have access to the most practical, cost-effective, and reliable energy sources.
The paper also includes Case Studies of what success can look like in addressing energy security and “heat poverty” in communities.
Highlights include:
- Red Lake, Ontario: After securing natural gas access, residents saved 50-70% on heating costs.
- Bigstone Cree Nation, Alberta: Partnered with ATCO for gasification, reducing reliance on higher costpropane.
- O’Chiese First Nation, Alberta: Established its own Indigenous-owned energy company to control natural gas production and distribution and has pursued community gasification as a priority.
The paper makes a strong case that energy poverty in Indigenous communities is a serious but solvable issue. Rather than restricting natural gas in favor of other government goals, federal and provincial supports for energy projects should be technology neutral and focus on ensuring that everyone in Canada has affordable, secure, and reliable energy access.
“Energy security is about ensuring that every Canadian, including Indigenous and remote communities, has access to reliable and affordable energy. Too many communities are forced to rely on high-cost energy options because of political imperatives that are disconnected from needs on the ground. We need a practical approach to energy, recognizing that affordability and reliability are just as important as sustainability.
Shannon Joseph, Chair, Energy for a Secure Future
“People in our community are forced to choose between heating their homes and putting food on the table. The government talks about greener infrastructure, but how long do we have to wait for affordable energy? People are suffering now. Natural gas is the best option today—it’s affordable, reliable, and safer in winter than propane, which can run out when we need it most. We just want the same choices as other homeowners.”
Edwin Ananas, Chief, Beardy’s & Okemasis First Nation
“When we talk about the energy transition, we must make sure that Indigenous communities aren’t left behind. Indigenous peoples have struggled for far too long with energy insecurity and we care deeply about the environment and the climate. But we also care about the quality of life of our youth and our elders. We want the same access to affordable energy as other Canadians can take for granted.”
Guy Lonechild, President & CEO, First Nations Power Authority
You can access the full paper using the following link: Indigenous Energy Security Paper: Summary for the Website
