Collingwood’s electricity distributor has been fined for disconnecting services without providing proper notice to customers.
The Ontario Energy Board, with cooperation from EPCOR found the distributor sent 2,400 disconnection notices in 2020 and 2021 that didn’t comply with provincial legislation, resulting in 103 customers whose electricity was wrongfully disconnected.
Through an Assurance of Voluntary Compliance, EPCOR has agreed to pay a penalty of $18,000, plus refunds, credits and a local donation.
According to the voluntary compliance document provided to CollingwoodToday by the Ontario Energy Board (OEB), a customer complaint on Oct. 20, 2021 launched an investigation by the OEB into EPCOR’s disconnection notice practices.
EPCOR provided the OEB with the information requested for the investigation, including all disconnection notices sent by EPCOR to customers between Aug. 1, 2020 and Sept. 1, 2021.
The OEB determined that 2,200 disconnection notices sent during that time did not comply with the OEB’s Distribution System Code, which are the rules that set out minimum obligations for a licensed electricity distributor.
The OEB investigation revealed EPCOR disconnected service for 80 customers without providing the required minimum 14-days notice, and disconnected another 23 customers outside of the disconnection window mandated by provincial rules.
Between Oct. 1, 2020 and Sept. 1, 2021, EPCOR sent out 1,948 disconnection notices that did not provide the minimum 14 days notice of disconnection. The notices were up to three days short of the required 14 days. Of the customers who received the shortened notices, 80 had their electricity service disconnected.
In September 2020, the OEB found EPCOR sent out 252 disconnection notices that extended the window during which their electricity could be disconnected.
According to the OEB’s customer service rules, a disconnection notice must provide a 14-day warning for the customer, and then service can only be cut off within the 14 days after that warning period. If the service remains connected for that two-week period, another disconnection notice must be issued and the process restarted. EPCOR cut off service for 23 customers 15 days after the warning period ended, making them non-compliant with provincial rules.
There were a total of 103 customers whose electricity was wrongfully disconnected according to the OEB, and EPCOR charged $3,740 in reconnection fees. EPCOR has refunded those fees to the customers.
EPCOR has also agreed to pay $3,000 to the local Low-income Energy Assistance Program agency, in addition to the $18,000 penalty issued by and payable to the OEB.
In an emailed statement, a spokesperson from EPCOR said the company took “immediate steps to find and fix the problem and remedy any harm to customers,” as soon as they became aware of the situation. The steps taken included issuing refunds for reconnection fees prior to being asked to refund the fees by the OEB.
“We have reviewed our processes and implemented measures to prevent this from happening again, including refresher training for our employees, updating the tool used to calculate timelines and additional management oversight on the disconnection process,” read the statement.
Customers who were wrongfully disconnected received a $50 credit on top of the refund of reconnection fees.
Brian Hewson, vice-president of consumer protection and industry performance for the OEB said the result of the investigation and EPCOR’s cooperation is better protection for customers.
“Customers trust utilities to provide timely and accurate information, in particular when it comes to matters of billing and payment,” stated Hewson in a news release from the OEB. “That’s why we expect utilities to follow the disconnection notice rules and provide proper notice before cutting power.”
In the emailed statement, EPCOR offered an apology to the customers impacted by the error, and thanked OEB for assisting.
EPCOR distributes electricity for about 18,500 customers in Collingwood, Stayner, Creemore, and Thornbury.
The investigation and terms ordered by the OEB to EPCOR were issued through an Assurance of Voluntary Compliance, which is a binding commitment. Failure to abide by the terms can lead to enforcement action by the OEB.
The compliance agreement also states that EPCOR will not apply for any fee hikes to recover the cost of the refunds or penalties paid as a result of the disconnection notice errors.
The OEB is the independent regulator for Ontario’s electricity and natural gas distributors.
