Energy Savings Reenters Ontario Market

Energy Savings Income Fund ("Energy Savings" or the "Fund") announced today that, effective Monday March 31, 2003, it will restart marketing of electricity to Ontario businesses. On March 21, 2003, Ontario Energy Minister John Baird announced that a portion of the Ontario electricity market ("Large Volume Users") will remain open for competition. While the majority (by volume) of these large users are not in the Energy Savings target market, a significant number of the open market users meet the Energy Savings criteria. Of the approximately 150,000 electricity customer equivalents currently under contract to Energy Savings, about 60% would fall within the Large Volume User category.

In conjunction with this announcement, management of Energy Savings announced their customer aggregation targets for the fiscal year ending March 31, 2004. The Fund has, in the past, set public targets to which it compares its actual results within its quarterly reports. Aggregation costs for natural gas are targeted at $140 per new customer up from $120 last year. Target electricity aggregation costs per customer are unchanged from fiscal 2003. Target annual margin per customer is unchanged in both gas and electricity from fiscal 2003. Rebecca MacDonald, President and Chief Executive Officer of Energy Savings, stated that: "We are very pleased to be back marketing electricity contracts. With the price volatility seen in the market to date, we believe our five year price protection program will be very attractive to those businesses and other larger users who do not fall under the 4.3 cent per kWh price cap. This is the first step to a full reopening of the market to competitive forces. I would say to our Unitholders that we will proceed cautiously back into the market but there are grounds for considerable optimism that Ontario electricity is back as a meaningful source of customer and cashflow growth for Energy Savings." As regards the Company's targets for the coming twelve months, Ms. MacDonald added: "Based on our success prior to November 11th in marketing to a segment of the Large Volume Users, we are comfortable that, on a conservative basis, our electricity additions should match our Ontario gas additions for the coming year. Yesterday, we entered into contracts for new power supply and will begin marketing this power effective Monday. Our natural gas targets are consistent with our current aggregation rates and the actual gross additions realized during fiscal 2003." This press release contains forward looking financial information. The customer aggregation targets noted above are based on both past and current aggregation rates and an analysis of market saturation in each jurisdiction as well as on management's estimates of market conditions for the coming 12 months. To the extent that the regulatory environment in these markets change or that market conditions are not as anticipated, the actual results realized may vary from those forecast and the variation may be material. The Fund Energy Savings' business, which is conducted in Ontario and Manitoba, involves the sale of natural gas to residential, small to mid-size commercial and small industrial customers under long term, irrevocable fixed price contracts. Energy Savings also supplies electricity to Ontario customers under contracts secured prior to the November 11, 2002 price freeze and to certain Large Volume Users who do not fall under the Governments price cap. By fixing the price of natural gas or electricity under its fixed price contracts for a period of three to five years, Energy Savings' customers eliminate their exposure to changes in the price of these essential commodities. Energy Savings, which commenced business in July of 1997, derives its margin or gross profit from the difference between the fixed price at which it is able to sell the commodities to its customers and the fixed price at which it purchases the matching volumes from its suppliers. Forward-Looking Statements The Fund's press releases may contain forward-looking statements including statements pertaining to customer revenues and margins, customer additions and renewals, customer consumption levels, distributable cash and treatment under governmental regulatory regimes. These statements are based on current expectations that involve a number of risks and uncertainties which could cause actual results to differ from those anticipated. These risks include, but are not limited to, levels of customer natural gas and electricity consumption, rates of customer additions and renewals, fluctuations in natural gas and electricity prices, changes in regulatory regimes and decisions by regulatory authorities, competition and dependence on certain suppliers. Additional information on these and other factors that could affect the Fund's operations, financial results or distribution levels are included in the Fund's annual information form and other reports on file with Canadian securities regulatory authorities which can be accessed through the SEDAR website at www.sedar.com or through the Fund's website at www.esif.ca

Aggregation costs for natural gas are targeted at $140 per new customer up from $120 last year. Target electricity aggregation costs per customer are unchanged from fiscal 2003. Target annual margin per customer is unchanged in both gas and electricity from fiscal 2003.

Rebecca MacDonald, President and Chief Executive Officer of Energy Savings, stated that: "We are very pleased to be back marketing electricity contracts. With the price volatility seen in the market to date, we believe our five year price protection program will be very attractive to those businesses and other larger users who do not fall under the 4.3 cent per kWh price cap. This is the first step to a full reopening of the market to competitive forces. I would say to our Unitholders that we will proceed cautiously back into the market but there are grounds for considerable optimism that Ontario electricity is back as a meaningful source of customer and cashflow growth for Energy Savings."

As regards the Company's targets for the coming twelve months, Ms. MacDonald added: "Based on our success prior to November 11th in marketing to a segment of the Large Volume Users, we are comfortable that, on a conservative basis, our electricity additions should match our Ontario gas additions for the coming year. Yesterday, we entered into contracts for new power supply and will begin marketing this power effective Monday. Our natural gas targets are consistent with our current aggregation rates and the actual gross additions realized during fiscal 2003."

This press release contains forward looking financial information. The customer aggregation targets noted above are based on both past and current aggregation rates and an analysis of market saturation in each jurisdiction as well as on management's estimates of market conditions for the coming 12 months. To the extent that the regulatory environment in these markets change or that market conditions are not as anticipated, the actual results realized may vary from those forecast and the variation may be material.

The Fund Energy Savings' business, which is conducted in Ontario and Manitoba, involves the sale of natural gas to residential, small to mid-size commercial and small industrial customers under long term, irrevocable fixed price contracts. Energy Savings also supplies electricity to Ontario customers under contracts secured prior to the November 11, 2002 price freeze and to certain Large Volume Users who do not fall under the Governments price cap. By fixing the price of natural gas or electricity under its fixed price contracts for a period of three to five years, Energy Savings' customers eliminate their exposure to changes in the price of these essential commodities. Energy Savings, which commenced business in July of 1997, derives its margin or gross profit from the difference between the fixed price at which it is able to sell the commodities to its customers and the fixed price at which it purchases the matching volumes from its suppliers.

Forward-Looking Statements The Fund's press releases may contain forward-looking statements including statements pertaining to customer revenues and margins, customer additions and renewals, customer consumption levels, distributable cash and treatment under governmental regulatory regimes. These statements are based on current expectations that involve a number of risks and uncertainties which could cause actual results to differ from those anticipated. These risks include, but are not limited to, levels of customer natural gas and electricity consumption, rates of customer additions and renewals, fluctuations in natural gas and electricity prices, changes in regulatory regimes and decisions by regulatory authorities, competition and dependence on certain suppliers. Additional information on these and other factors that could affect the Fund's operations, financial results or distribution levels are included in the Fund's annual information form and other reports on file with Canadian securities regulatory authorities which can be accessed through the SEDAR website at www.sedar.com or through the Fund's website at www.esif.ca