What You Should Know About Energy Contracts

Have you been approached by a door-to-door marketer? Here are your rights and obligations.

Important Note:

If you sign a contract with a marketer and you are already in a contract with another marketer, you will be charged a termination fee by one of them. The company you had a contract with can either

• choose to contest the new contract, in which case you will be charged a termination fee by the newer company; or
• choose not to contest it, then charge you a termination fee.

These fees are outlined in the contracts.

If a contract is negotiated at your home or office, the marketer must:

• have photo ID and present you with a business card;
• not put you under any obligation to show a copy of your bill;
• provide you with a copy of any paperwork that you signed;
• contact you after a 10 day cooling off period to re-affirm your intent to sign the contract;
• if you enter into a contract, give you a copy within 40 days;

Contract Reaffirmation

If you sign a contract for natural gas or electricity, It must be reaffirmed. The rules that apply to this are as follows:

1. Starting on the 10th day after you have received a written copy of the contract, the marketer or retailer is permitted to contact you (usually done by phone) to ask you to reaffirm your acceptance of the contract.
2. At that point you may choose to reaffirm, or you may choose not to do so. If you do not wish to reaffirm the contract, you cannot be required to pay any cancellation fees or penalties.
3. If you do not reaffirm the contract by the 61st day after you received a written copy, the contract will no longer be in effect as of that date.
4. If you reaffirm the contract and then decide at a later date to cancel it, you may have to pay a cancellation fee.

In three cases, reaffirmation is not required.

1. If you entered into a contract via the Internet.
2. If you responded to a direct-mail campaign.
3. If you contact the natural gas marketer or electricity retailer more than 30 days after the marketer or retailer initially contacted you, and ask to be signed up to a contract.

Renewal and Extension of Contracts

In order for a natural gas or electricity purchase contract to be renewed or extended, the original contract must contain a provision that allows for the renewal or extension. Please note, however, that the natural gas marketer or electricity retailer cannot change any terms or conditions of the contract other than those that relate to the duration of the contract and the price payable for the natural gas or electricity.

The rules for renewing or extending a contract differ, depending on the duration of the renewal or extension. Renewals or extensions for one year or less are treated in one way, and renewals or extensions for a longer period of time are treated in another way.

Important Note on Cancellation

If you have been automatically renewed, you may cancel the contract within 35 days after the first bill that shows the new price

If you agree to a renewal or extension, you have up to 14 days after you have confirmed your acceptance to change your mind and cancel the renewed or extended contract. You must give written notice of cancellation to the marketer or retailer within the 14 days.

Ontario Energy Board's summary of the rules (opens in a new window)