Ronald Reagan once stated the most terrifying words in the English language are: “I’m from the government, and I’m here to help.”

This famous quip could easily apply to the imbroglio taking place regarding the Maine State Housing Authority and its Low Income Home Energy Assistance Program.

Through a mandated discount on heating oil for LIHEAP customers, MSHA has created myriad problems for customers, dealers and social service agencies alike with unintended consequences that will play out for years. MSHA claims that it is simply “stretching tax dollars” by requiring this discount. This is not a new concept and is appealing on the surface, given the high cost of heating fuel and low Maine incomes.

Until recently, these ideas were rejected because of a basic economic tenet. Forcing a discount on one group usually results in higher prices for another group. MSHA has forgotten this lesson, and is now forcing dealers to make some difficult choices in order to pay for their LIHEAP participation. The result might be a reduction in employee wages and benefits, a decrease in capital investments, or an increase in the cost of their products. Some have chosen not to participate because at the end of the day, they were not willing to impose this extra cost, or tax, onto others.

Another reason mandated discounts were turned away is the understanding it would affect the long-standing, beneficial relationship between low-income customers and their oil dealers.

LIHEAP benefits only pay for a portion of the low-income customers’ needs. MSHA is taking a shortsighted view that overlooks the reality of what it takes to keep them warm. Its plan fails to account for value already provided to those customers in the form of late-night emergency deliveries, small deliveries, and delivering with only the promise from a social service agency there will be money – eventually.

Many times, they do these things at no extra charge.

When prices are high, state government should do everything possible to encourage volunteer service to those receiving public assistance. The new MSHA policy discourages this behavior through increases in both burdensome administrative processes and new discount mandates.

The state used to understand forcing discounts and tedious administrative requirements upon vendors doesn’t engender good will. The claimed gallons saved, which are likely overstated by MSHA, is only one side of the ledger.

We are already seeing thousands of customers having to end long-term relationships with trusted dealers because of this myopic state policy. The state, in this instance, is doing exactly the opposite of what is needed in difficult times.

The people of Maine are generous. Civic organizations, businesses and churches usually do whatever it takes to care for those in need. Many oil dealers set aside funds to help local charities and customers facing extraordinary circumstances. They do not do this because the state of Maine tells them to. They do it because they take their roles as responsible businesspeople seriously, and care about being good stewards of their respective communities.

The delivery of heating oil and the service associated with keeping Maine citizens warm and safe has value well beyond simply the price of product. Up until two years ago – before MSHA started demanding discounts – customers, dealers, community action agencies and MSHA worked harmoniously and successfully to ensure the delivery of the LIHEAP benefit.

This accord has now been damaged by state action.

Somehow, without the large bureaucracy in Augusta telling dealers how much to charge and telling citizens with whom they can do business with, we’ve gotten through many long Maine winters without anyone freezing.

We will get through this winter again, notwithstanding government’s “help.”

Jamie Py is the president of the Maine Oil Dealers Association.