Centretown’s main social housing agency is applauding new provincial rules aimed at protecting energy consumers against improper sales tactics.
Meg McCallum, communications manager at Centretown Citizens Ottawa Corp., says a new limit on penalties for cancelling electricity contracts and prohibitions on “aggressive” marketing will provide relief to tenants.
“That’s a huge problem right now,” says McCallum, describing the confusion that has surrounded energy marketing sales pitches and billing practices. “We’ll get a call from somebody as soon as they get their first bill. It’s so much more expensive than they’re used to paying.”
McCallum says she has encouraged residents to contact the Ontario Energy Board to complain about the contracts and tactics of energy retailers.
Andrew Block, spokesperson for the Ontario Ministry of Energy, says the OEB was receiving about 100 to 150 complaints a week about unfair practices.
An Oct. 13 news release from the ministry says complaints relate to “not receiving a copy of the contract, improper procedures for reaffirmation calls, and poor business practices around renewals.”
The rules come from legislation that was passed in May and are scheduled to come into effect in January. They will require energy retailers to provide price comparisons and to permit the cancelling of contracts without penalties under certain circumstances. Additionally, tenants with “suite meters” will be able to pay for electricity separately from their rent. The rules require energy retailers to train their staff to follow the new practices.
But there are concerns the rules don’t go far enough because they don’t stop vendors from going door-to-door to make their sales pitches. While soliciting is not allowed in buildings owned by the Centretown corporation, McCallum says it still occurs.
Seniors and those with developmental disabilities are especially vulnerable to “aggressive” sales tactics, she says.
“It’s certainly not just social housing tenants who are preyed upon. People across downtown are getting the same thing.”
Block says vendors can still sell energy door-to-door, but that the rules “are a way to ensure consumers are properly protected and given the information they need to make an informed decision.”
In June, Summitt Energy was given a notice from the OEB outlining allegations about the practices of five sales agents. The company provides service in British Columbia, Quebec and Ontario, and has had salespeople sell its services in Ottawa.
In response to the allegations, Summitt Energy released a statement on its website saying it would provide a verification call, plain-language disclosure form and a copy of the agreement to each new customer.
Summitt spokesperson Victoria Ollers says the statement gives “some direction in terms of what Summitt is doing, and all of these things are probably beyond the regulations that are going to be introduced in January.”
She says she cannot comment on the new rules because the OEB still has to make a decision on the earlier allegations.
“They’re salespeople,” says McCallum. “Their job is to sell the product, so I’m not completely convinced training them to follow the rules will solve the problem of them selling these high-priced utilities.”
McCallum suggests residents ask salespeople to leave buildings where they are not allowed to be soliciting and contact police if that doesn’t work. She says she plans to inform residents of the new rules in the coming months.
The regulations are available in detail at the Ministry of Industry’s website.