Buying From Retailers
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Understand Your Choices
Ask the Right Questions Before Buying Electricity From a Retailer. Listen to this radio spot! Ontario Energy Board:1-877-632-2727 |
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| Click the image above to view the video. (Video Size: 3Mb) |
Saving money is at the top of almost everyone's "To Do" list. One way to save is by reducing monthly expenses, such as the household electricity bill. EnWin Utilities Ltd. wants homeowners to understand their choices when it comes to buying electricity.
Choosing to buy electricity from an energy retailer is one option that is being presented to consumers by a number of companies not affiliated with EnWin. Some people prefer this option. Regardless, the right questions should be asked when an electricity retailer comes calling.
Electricity retailers purchase large "blocks" of wholesale electricity from power generating companies, and then sell it to consumers. The customer pays the retailer a "fixed-price per kilowatt-hour", as mutually agreed upon in a contract offered by the retailer. The price offered is typically guaranteed for a specified number of years, although in some cases the price could change during the contract period.
OEB Rules for Retailers
EnWin recommends that customers review the OEB's Code of Conduct for Retailers (http://www.oeb.gov.on.ca) in order to inform themselves and be better prepared for when a Retailer comes to their door. Among the OEB's rules for Retailers is a list of "Fair Marketing Practices", which include:
"A retailer or salesperson of a retailer, when retailing to a consumer, shall:
- immediately and truthfully give the name of the salesperson and the retailer to the consumer, and state that the retailer offering a contract for the supply of electricity is not the consumer's distributor;
- state the price to be paid under the contract for the supply of electricity, expressed per kilowatt hour of electricity for low volume consumers, and state the term of the contract;
- not exert undue pressure on a consumer;
- allow the consumer sufficient opportunity to read all documents provided;
- not make any offer or provide any promotional material to a consumer that is inconsistent with the contract being offered to or entered into with the consumer;
- not make any representation or statement or give any answer or take any measure that is false or is likely to mislead a consumer; and
- if retailing to a low volume consumer at a place other than the retailer's place of business, display a photograph of the salesperson, with the salesperson's name and the name of the retailer."
A list of Retailers licensed by the Ontario Energy Board is available on the OEB website at http://www.oeb.gov.on.ca/
Additional Information
Residential customers who are not with a Retailer pay the default electricity fixed rate, which is currently $0.058/kWh for the first 100 kWh used per monthly billing cycle and $0.067/kWh hour for the remaining kWh used per monthly billing cycle. (For more information on current pricing visit www.oeb.gov.on.ca)
When the government implements Time of Use (TOU) rates, consumers will be able to gain more control over their monthly electricity bills by shifting their consumption to lower cost, "off peak" time periods (mornings, evenings, holidays and weekends). If they so choose, they will benefit from TOU rates by shifting as much of their electricity use as possible to "off peak" time periods.
Fixed-price contracts offered by retailers remove the time-of-use rate option by setting a fixed electricity rate, regardless of the time of day. Time of use rates, in and of themselves; do not mean that customers should quickly sign fixed-price contracts with electricity retailers because they are worried about high rates during peak periods. All of the facts and options should be understood before "locking-in" to a fixed rate offered by a retailer.
EnWin Utilities Ltd. wants to make sure customers are aware of the following:- EnWin does not send electricity sales representative door-to-door; and
- EnWin is not affiliated with any electricity retailers.
If a Windsor homeowner does sign with an electricity retailer, in most cases he or she will continue to receive a hydro bill from EnWin Utilities Ltd. The only change that may be is that the "electricity" line on the bill will be charged at the rate agreed to between the customer and the retailer. EnWin will continue to deliver electricity to every customer, and separate regulated charges will also be included on the bill, in addition to the retailer's electricity charge.
