Tough New Rules In Place For Energy Retailers

January 13, 2011

McGuinty Government Improves Consumer Protection And Provides Relief For Families

Ontario is helping families with strong new rules and safeguards against unfair practices by energy retailers while also providing 10 per cent off electricity bills, starting this month.As of January 1, all energy retailers are required to follow strong new consumer protection rules, including sharing with consumers a comparison of a fixed contract price to the price offered by the local utility company. The new rules ensure consumers will receive accurate information from energy retailers before signing a contract, and will limit consumer penalties and fees if a contract is cancelled. In addition, retailers and marketers:

  • can only enter into, verify, renew or extend contracts with the account holder, their spouse or their authorized agent
  • must wear and prominently display an identification badge
  • must disclose all contract costs
  • must provide a plain language disclosure statement along with any contract or contract renewals.

The Ontario Clean Energy Benefit also came into effect at the beginning of this year. The benefit is providing 10 per cent off the cost of electricity on bills for Ontario families every month for the next five years, while important investments are made in the electricity system. Ontario families, farms and small businesses will automatically receive the benefit on their electricity bill. This is in addition to the new and permanent Northern Ontario Energy Credit, which provides up to $200 per family and up to $130 for single people for 2010 to help northern Ontarians with home energy costs,and is indexed for inflation for subsequent years.

As part of the province’s Open Ontario Plan, the Long-Term Energy Plan is moving the province to clean sources of power and shutting down coal power that pollutes the air Ontario families breathe. Upgrading and modernizing Ontario’s energy infrastructure is helping to provide reliable power to homes and businesses and is creating thousands of jobs for Ontarians in the growing clean energy sector.

QUICK FACTS

  • An average household can expect to save approximately $150 through the Ontario Clean Energy Benefit.
  • The enhanced Ontario Energy and Property Tax Credit is putting up to $900 back into the pockets of low- to middle-income families and single people and up to $1,025 for seniors for 2010 and is indexed for inflation for subsequent years, for a total of almost $1.3 billion annually.
  • More than half of all northerners qualify for the Northern Ontario Energy Credit, and must apply by June 30, 2011 to receive the 2010 credit.
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