Thank you kindly, Madam Chair and members of the committee. Thank you for the opportunity to appear today.
My name is Kevin Larmer. I'm senior director of policy, government relations and communications at the Canadian Gas Association. I represent the companies that deliver approximately 40% of Canada's end-use energy through more than 600,000 kilometres of pipeline infrastructure, serving roughly 20 million Canadians each day.
Our members have been helping Canadians improve energy efficiency for decades. Long before retrofit programs became a national priority, natural gas utilities were delivering programs to help households use less energy, lower their bills and improve the comfort of their homes. These programs support insulation upgrades, air sealing, energy assessments and high-efficiency equipment. Since 2010, Canada's natural gas utilities have invested $3.6 billion in these types of energy efficiency programs.
Importantly, these programs operate under regulatory oversight. Provincial regulators assess the costs, expected savings and bill impacts before approving them. As a result, our members have extensive experience in designing energy efficiency programs and delivering measurable results while remaining affordable for customers.
Today, I'd like to focus on four areas—affordability, energy-saving retrofits, technology neutrality and the cost of meeting peak energy demand.
First, retrofits must be affordable. Energy affordability matters to Canadians. Polling released last month by Positive Energy and Nanos Research found that affordability was Canadians' top energy priority ahead of emissions reductions and reliability. Households considering retrofit options need transparent information about both upfront costs and ongoing operating costs. This includes understanding whether electrical service upgrades may be required and how long it may take for energy savings to offset the investment.
In Canada, natural gas remains the most affordable heating option. In Manitoba, where electric rates are among the lowest in Canada, Manitoba Hydro estimates that heating a home with a high-efficiency natural gas furnace costs approximately half as much annually as heating the same house with a cold-climate heat pump. The relative benefit of gas only increases in other provinces where electricity rates are higher.
Second, prioritize retrofits to reduce energy use, regardless of the energy source. The most cost-effective energy is often the energy that never needs to be consumed. Attic insulation, air sealing, improved windows and better building envelopes reduce the amount of energy required to heat and cool a home, whether that home uses natural gas, electricity or a combination of both. These measures also have a proven track record. Between 2000 and 2024, average residential natural gas consumption in Canada fell by approximately 45%, from 155 gigajoules per household to 85 gigajoules per household. More efficient homes and equipment help deliver those reductions while continuing to meet Canadians' energy needs.
Third, maintain a technology-neutral approach. No single retrofit solution will be right for every home. Canada's housing stock, climate conditions and household circumstances vary significantly from region to region. Public policy should focus on outcomes such as energy savings, emissions reductions and affordability, rather than on prescribing a single technology pathway. Whether a homeowner chooses natural gas, electricity, renewable natural gas, a heat pump or a dual-fuel system, support should be based on achieving measurable results.
Fourth, consider the broader energy system. When discussing home heating, it's important to consider not only individual buildings but also the infrastructure that supplies them. Canada's energy networks are built to meet peak demand during the coldest and hottest days of the year. Those peaks drive infrastructure investment and ultimately influence what ratepayers pay. During Alberta's January 2024 cold snap, the province's natural gas system delivered energy equivalent to about 110,000 megawatts, compared with roughly 12,000 megawatts from the electric system. That example illustrates the scale of energy Canadians require during extreme winter conditions and the important role both systems play in maintaining reliability.
Dual-fuel heating systems are one example of how both networks can work together. Heat pumps can provide efficient heating during milder weather, while natural gas can support heating requirements during periods of extreme cold. Retrofit policies should help Canadians use less energy, lower their energy bills, reduce emissions and remain comfortable during extreme weather.
The natural gas delivery industry has spent decades helping Canadians improve energy efficiency through practical, regulator-approved programs that deliver measurable results. As Canada considers future retrofit policies, we encourage a continued focus on affordability, energy efficiency, technology neutrality and full consideration of the energy systems that Canadians rely on every day.
Thank you. I look forward to questions.