Energy contracts have escape route

Robin Harvey
Toronto Star
March 7, 2002

Many Ontario residents who signed long-term energy contracts after Aug. 3, 2001 will have a year to get out of them, no questions asked.

That’s because some retailers, including Hydro One’s Onsource and Toronto Hydro Energy Services, issued direct sales contracts — negotiated door-to-door — that did not comply with provincial law.

Tom Park, of the Ontario Energy Board, yesterday confirmed that consumers would have a year to get out of such contracts signed after the law changed August 3, 2001.

This includes contracts that do not include a notice in at least 12-point type on the front with a 12-point bold headline "Buyers Right to Cancel" that explains the consumers right to opt out of the contract during a 10-day cooling off period.

If the information is not totally contained on the front of the contract, there must be a notice in 12-point bold type on the front telling consumers where in the contract they can find out about their rights to opt out. The 12-point type is roughly one-third larger than the type you are reading.

"Any contract signed after that date (Aug. 3, 2001) that does not meet the requirement means consumers have one year to cancel," Park said.

Toronto Hydro Energy Services recent door-to-door contracts do not have the required headline nor do they explain the consumers’ rights in large enough type.

"If we are doing it wrong, we’ll fix it," spokesperson Cathren Ronberg said.

Contracts used door-to-door by Onsource as late as October 21, 2001, did not have the correct information.

A spokesperson for Onsource said the firm would determine if there are problems with the contracts.

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