Robin Harvey
Toronto Star
March 6, 2002

Consumers who feel they were hoodwinked or misled into signing a long-term electricity deal can fall back on the industry’s code of conduct for help.

All the major retailers say if it can be proved an agent violated the code, the contract will be void. Retailers will investigate the complaint and if it is not resolved, it can be taken to the Ontario Energy Board. The code states:

• All retailers, no matter how they solicit your business, must immediately and truthfully identify themselves to the consumer and say exactly for whom they are working. They must "not mislead or otherwise create any confusion in the mind of a consumer about the identity of the marketer."

• The agent "must not exert undue pressure."

• He or she must also give "sufficient time for a consumer to read thoughtfully and without harassment all documents provided."

• Agents must not make any statement or representation or do anything that is false or likely to mislead a consumer with regard to any term in an offer.

• They must not say anything that is not contained in the written offer.

• They must provide "only timely, accurate and verifiable and truthful comparisons."

• And they must not use print size or type on a contract that makes it hard to read.

Even so, some contracts have the terms and conditions listed on the back that are in very fine, small print on a tough-to-read coloured background.

The following complaints sent to Consumer Watch appear to violate the code.

Though rare, some of the worst and most serious cases have involved signature forgeries. Nick Guilford, senior vice president for Direct Energy, confirms that St. Peter and Paul Ukrainian Catholic Church was switched to a long-term contract using forged agreements. He has assured the church that the agent has been fired and the forgery reported to police.

Another common complaint is about agents who gave a vague identity, saying they were from "the hydro company" or "your hydro company."

M. Savoia was approached by an agent who said she was from his hydro company and was just signing him up for a new program. When she asked to see the bill to get a contract number, Savoia became suspicious and called his hydro company. They said the information was misleading and they were not trying to get him to sign any deal.

Others have contacted Consumer Watch and said an agent compared the price listed on the consumer’s hydro bill to the retailer’s fixed rate for electricity as proof the long-term rate is a better deal.

This happened to Binh Ha of Toronto, who was told the fixed rate of 5.79 cents per kilowatt hour she signed for was better than the 6.4 cent rate listed on her current utility bill. This is misleading. The hydro bill rate reflects the cost of electricity and other charges, while the fixed-rate contract rate quoted as a comparison was for electricity only.

Ralph Paidcock said he was seriously pressured into signing a contract by an agent who swore hydro prices were sure to go up and if he didn’t lock in now, he would face very stiff bills in future. He was also told the 5.79-cent per kilowatt hour rate he signed was in fact the current rate he was paying anyway and he would simply be locking into that rate. In fact, no one knows yet how the market will perform after the market is deregulated on May 1.

Etobicoke’s Laura Sciascia says she was on her way out when the agent showed up and he would not go away. Finally, she said she signed to get rid of him. Not once did he mention the length of the five-year contract and she was given no time to consider the offer.

Consumer Watch is forwarding all of the complaints above, as well as several already sent, to the appropriate retailers for action.

Contact Consumer Watch through e-mail at conwatch@thestar.ca, by fax at 416-945-8611 or through our Web site, http://www.thestar.com/conwatch. Include your full name, address, a day phone number, any documents and a detailed history of your problem. It will take six to eight weeks to review cases. You will not be contacted unless we can pursue your case.