Transcript howat_program_models.ppt

Utility Low Income Payment
Assistance Program Models
Vermont Low Income Working
Group
August 8, 2006
Straight Discount
• Specified discount taken from total bill
– Customer charge reduction
– Usage charge reduction
– + Ease of Administration
– - no targeting of benefits within participant group
Consumption-based Discount
(inclining block rate)
• Percentage of discount varies depending
on level of usage
• + incentive to conserve or use energy
efficiently
• - low “cutoff point” potentially harms elders
and others with temperature-related health
and safety risk
Percentage of Income Payment
Plan (PIPP)
• Household pays a pre-determined,
“affordable” percentage of income for
home energy service
• + targeting of benefits within participation
group
• - relatively high administrative cost
PIPP Variations
• Straight PIPP
– Difference between “affordable” bill and actual
bill made up through payment assistance
funds
• Percentage of Bill
– Consumption-sensitive
Tiered Discount
• Assistance targeted to household income
or poverty level
• Higher percentage discount for
households with lower income (or lower
income to poverty ratio)
• + targeting of benefits
• + moderate administrative expense
Arrearage Management
• Treatment of past bills
• One-time credit
• Reduction of past due amounts over time
based on payment of current bills
• Comprehensive approach to affordability