More than 1 in 5 Canadian households earning under $55K struggling with energy poverty

A new Fraser Institute study reveals that energy poverty remains a serious issue in Canada, with more than one-in-five households earning less than $55,000 spending at least 10% of their total expenditures on energy.

The 2025 edition of Energy Costs and Canadian Households provides a sobering look at how rising energy costs continue to disproportionately affect lower-income Canadians.

In 2021, 22.1% of households in the lowest income bracket (earning $31,200 or less) and 20.7% in the second lowest ($31,200–$55,000) were classified as energy poor when gasoline costs were included.

Nationally, 11% of all Canadian households fell into this category — spending a large share of their income on electricity, home heating fuels, and transportation. The study also highlights regional disparities.

Atlantic Canada recorded the highest energy poverty rate in 2021 at 24.6%, while British Columbia had the lowest at 8.1%.

Energy poverty rates rose slightly from 2019 to 2021 when looking only at within-the-home energy use — climbing from 4.7% to 6.2%. However, when gasoline expenses are included, the national rate dropped modestly from 12.3% in 2019 to 11% in 2021.

Between 2019 and 2021, Canadian households spent approximately 2% of their total expenditures on in-home energy and 5% when gasoline was factored in.

The report warns that energy policies increasing costs — such as carbon taxes — risk deepening the burden on low- and modest-income Canadians already facing energy poverty.

Read the full study at FraserInstitute.org.

Sheila Gunn Reid

Chief Reporter

Sheila Gunn Reid is the Alberta Bureau Chief for Rebel News and host of the weekly The Gunn Show with Sheila Gunn Reid. She's a mother of three, conservative activist, and the author of best-selling books including Stop Notley.