Energy Re-billers

Avoiding and Terminating Expensive Energy Contracts

What are energy re-billers? Energy re-billers are companies that

purchase electricity and natural gas from producers, and then sell them to consumers.

Some examples of energy re-billers that operate in our area are Universal Power, Universal Energy, Just Energy and Ontario Energy Savings Co.

How do they operate?

Energy re-billers often send salespeople door-to-door to try to convince consumers to sign contracts with their companies.

The sales tactics of the door-to-door salespeople can be very aggressive.

The sales tactics of the door-to-door salespeople often include persuading the consumer that they can save money on their electricity or natural gas by signing a contract with them.

Why is this a concern?

Unfortunately, once consumers have signed a contract with an energy re-biller, they often find that their monthly bills are significantly higher as a result.

The contracts with energy re-billers can have a term of up to 5 years.

Often, the energy re-billers will not permit consumers to cancel their contracts without paying an expensive cancellation fee.

Why is this a concern?

Since many of the consumers who sign contracts with energy re-billers are members of low-income households, the increased utilities costs can be a real hardship.

Low-income households also often cannot afford to pay the cancellation fee, so they are stuck in the expensive contracts.

What can consumers do about this?

The best defence against getting caught in this expensive situation is to not sign a contract with an energy re-biller in the first place, without first seeking some legal advice to ensure that you understand the contract.

Consumers should be advised against signing anything at their home. They should be advised to ask for a copy of any contract to show to a legal worker before signing.

What can consumers do about this?

If a consumer has recently signed a contract with an energy re-biller, they may be able to cancel the contract.

Energy re-billers are required to get confirmation of any contract 10-40 days after the consumer signs the contract. Energy re-billers will often do this by telephone.

Consumers can cancel the contract that they have recently signed by refusing to confirm the contract 10-40 days after signing.

What if someone has confirmed a contract? If a consumer has already confirmed their contract

with an energy re-biller, it still may be possible to terminate their contract without paying a termination fee.

If the energy re-biller has engaged in any unfair marketing practices, such as misleading statements or promises, this may form a basis for cancelling the contract.

The legal workers at the Grey-Bruce Community Legal Clinic can assist with these terminations.

How can a contract be terminated?

Many energy re-billers have policies in place to allow customers who are recipients of social assistance or who are seniors to terminate their contracts without penalty.

The legal workers at the Grey-Bruce Community Legal Clinic can assist with obtaining these terminations.

How can a contract be terminated?

Where a customer is not on social assistance nor is a senior, the contract may still be terminated based on violations of the Consumer Protection Act and the Ontario Energy Board Act on the part of the energy re-biller.

The legal workers at the Grey-Bruce Community Legal Clinic can assist in determining whether there are legal grounds to terminate a contract and can assist with termination.

Important Deadline

IMPORTANT: For termination under these Acts, there is often a one-year deadline from the time of starting the contract. It is therefore important to refer any persons who may want to cancel a contract with an energy re-biller to the Grey-Bruce Community Legal Clinic as promptly as possible.

NOTE: this one-year deadline does not apply in cases where the contract is being terminated on the grounds that the consumer is on social assistance or a senior.

For Further Information:

Feel free to contact the Grey-Bruce Community Legal Clinic with any questions regarding Energy Re-Billers.

Our legal workers are available between 9:00 and 11:00 every weekday morning to provide legal advice over the phone or to drop-ins.