A Saint John poverty group is urging NB Power to help New Brunswick's poorest families manage winter heating bills with a fund to cover overdue accounts for people facing power disconnection.

Kurt Peacock of Vibrant Communities Saint John gave evidence at a two-day Public Utilities Board hearing in Fredericton that started on Monday. The PUB is reviewing NB Power's rate application, and hearing evidence about how the utility treats its customers as part of that process.

Peacock told the board the best way to enhance the relationship between the utility and its customers is to improve services for those most in need.  

NB Power cut power to 5,100 of its customers last winter for non-payment, and 5,400 the winter before. A new government policy prevents NB Power from disconnecting overdue accounts before the end of March, but Peacock fears mass disconnections in the spring. He says the utility should set up a third-party endowment fund so people who can't pay their bills won't have to worry about power disconnections.

"In other jurisdictions, utilities generally find a charitable partner, like the United Way or the Salvation Army, to administer a fund, simply to help those families most in need for help paying their heating bills," he said.

Late charges too high: poverty advocate

Peacock also says the power company's 1.5 per cent monthly late charge is too high for people who fall behind on their winter heating bills. "We think the utility has a role to play in ensuring that New Brunswick's poorest families can manage without the fear of losing heat or light," he said.

NB Power president David Hay won't commit the utility to a relief fund, saying the provincial government is better suited to help those in need. "We all know there are people less fortunate than ourselves, people who need assistance. The fact of the matter is, in order to provide the kind of costs involved in some of these programs, money has to come from somewhere."

NB Power advises its customers to apply for social assistance if they have trouble meeting their payments. If they don't qualify, the utility says it tries to work out a deal with them, instead of disconnecting power.