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Universal Energy Fined $127,500 by the Ontario Energy Board

Beware the knock at your door where someone asks to see your Hydro Bill telling you that you pay too much and they can lessen your bills. One company that does door-to-door sales is Universal Energy but they aren't alone.

How can Hydro costs go down when you bring in a Third Party claiming to provide a fixed rate for a set time such as the next five years? There is that old saying if it sounds too good to be true it generally is.

Tanya Bruckmueller, Toronto Hydro offered some advice and help saying, "there is a cool-off period, you have to be very careful and sometimes it does work out to be better and sometimes it doesn't. The way there operate is they offer a flat rate that won't change over a period of time." Problem is that hydro can fluctuate throughout the year in which case a fixed rate contract doesn't make sense and can cost more in the long run. "How much do they go up is the question, and relatively rates have stayed pretty close. The customers will pay a certain amount for the electricity; we pay the provincial government back that money it goes to Hydro One or OPG. There are other rates that are added on after that. If you're a Toronto Hydro customer for example the rate for electricity right now from May to October is 5.7 cents per kilowatt hour for the first 600 kilowatt hours and 6.6 cents for over 600 kilowatt hours per month. We are moving to time of use we have about 10,000 time of use customers and those rates are 4.2 cents for off-peak and 9.1 for on-peak usage. If you're on time of use rates it does not make sense...with that happening I'm not sure what some of the retailers are offering in terms of their fixed rate usage. If you in fact agree to the contract and don't want to go through there is a cool off period of about two weeks and if you have any complaints you have to go to the Ontario Energy Board."

The Ontario Energy Board (OEB)  provides an informative tip sheet. Anyone in Ontario has the right to purchase Hydro directly or from a retailer. The retailer often come door to door if so they are required to identify themselves ID with their name, the name of the company they represent and the company’s OEB license number. As the OEB points out no one is obligated to show their hydro bill to anyone. Feel free to say no.

Universal Energy fined $127,500

On January 20, 2009 the OEB ordered Universal Energy Corporation to pay an administrative penalty in the amount of $127,500.00. Contracts with consumers who were subject to non-compliant practices have been cancelled and those consumers have been reimbursed.

Universal provided the OEB with an assurance of voluntary compliance, under Section 112.7 of the Ontario Energy Board Act,1998. The actions that Universal have agreed to in the voluntary assurance are mandatory and a failure to comply with these requirements would be a breach of their license obligations. Universal agreed to the following:

• Any low-volume consumer who was supplied electricity during the period from March 2007 to May 2008 may request a review of their contract. If they are now found to have been subject to similar contraventions, they may request cancellation of their contract without penalty and be provided reimbursement.
• Universal has agreed to conduct quality assurance audits of its reaffirmation calls and to provide a report to the Board’s Compliance Office with the results of those audits.
• Universal will provide a quarterly report to the Board’s Compliance Office regarding any disciplinary action taken with reaffirmation agents as a result of its quality assurance audits.
• Universal will provide the Board’s Compliance Office with a copy of their reaffirmation scripts and all other materials used by reaffirmation agents for a period of 18 months.

If you are disappointed with your hydro retailer first discuss it with them; if that doesn't resolve your issues then your best bet is to contact the Ontario Energy Board.