Why electricity competition and customer choice is the future for
Ontario, by creating jobs and benefiting customers in price and
TORONTO, March 10, 2014 /CNW/ - Planet Energy (Ontario) Corp. [Planet
Energy] would like to clarify and comment on the press release by The
Electricity Distributors Association [EDA] which was released on March
5, 2014. The information as outlined in the press release is factually
The EDA estimates "that roughly a million Ontarians are currently supplied with
electricity at their homes under the terms of retail contracts". As at February 2014, there are in fact approximately 350,000 Ontarians
currently enrolled under retail agreements1. As the EDA has nearly tripled the number of actual customers enrolled
under retail agreements, it is worth stating that all of the
information following that statement became inflated.
The EDA incorrectly states that "Energy retailers have also accounted for an inordinate number of
complaints to both the OEB and MPPs…" In fact, the number of consumer complaints against electricity
suppliers received by the Ontario Energy Board [OEB] from January,
2011, to December, 2013, is down approximately 80%2. However, utility escalated complaints during the same time period
have increased by approximately 255%3. In fact, consumer complaints against electric utilities were greater than the number of complaints against electricity retailers during the
latter part of 2013.
The EDA further compounds its non-factual statements by stating that
consumers under a retail agreement "incur a monthly commodity cost of approximately $105, in contrast to
$70 for those who purchase electricity directly from their local
utility…" The fact is that many consumers thus far during 2014 have saved money
under a retail electricity agreement when compared to the rate which
they would have paid with the utility, and during a high usage period4 as a result of the colder than normal winter.
The EDA should focus its efforts on improving efficiencies of its member
utilities for the benefit of all Ontarians. As an example to this
point, the service and administrative costs of Ontario's electric
utilities are to the knowledge of Planet Energy, the highest in all of
North America. At present time, a residential customer pays
approximately $257 per year for Customer Charges, which is in addition
to charges such as transmission and distribution. In fact, utility
charges alone can account from anywhere between 40%-90% of a consumers
payable charges5. Instead of lobbying for the elimination of customer choice in
Ontario, the EDA should instead be focusing on how their members can
reduce distribution, transmission and customer charges by becoming more
efficient and restructuring their organizations.
Planet Energy believes that the best way to improve Ontario's
electricity commodity market, and allow consumers to make an
apples-to-apples price comparison, is to remove the Global Adjustment
and allow electricity supply in Ontario to trade openly - much the same
as natural gas has traded in Ontario since 1986 -which has greatly
benefitted consumers. Competition can only exist in an open and
competitive market, and competition has always benefitted consumers.
The goal and agenda of the EDA and NDP seems to be to thwart electricity
competition in Ontario, stifle customer choice and move backwards to
inefficient monopolies, which do not offer choice and competitive rates
for Ontario consumers and businesses.
About Planet Energy (Ontario) Corp.
Planet Energy (http://www.planetenergy.ca) is a retail energy company that offers its customers a variety of
products and options. With our plans, our customers can choose what
works best for them, rather than being told what to pay by their local
Image with caption: "Planet Energy (CNW Group/Planet Energy)". Image available at: http://photos.newswire.ca/images/download/20140310_C4258_PHOTO_EN_37726.jpg
Image with caption: "Retailer complaints have significantly decreased by approximately 80%, while complaints against electric utilities have risen and are now greater than complaints against Retailers. (CNW Group/Planet Energy)". Image available at: http://photos.newswire.ca/images/download/20140310_C4258_PHOTO_EN_37724.jpg
Image with caption: "Escalated complaints for Retailers have decreased while escalated complaints against utilities have risen by approximately 255% and greatly exceed the number of escalated complaints against Retailers. (CNW Group/Planet Energy)". Image available at: http://photos.newswire.ca/images/download/20140310_C4258_PHOTO_EN_37725.jpg
SOURCE: Planet Energy
For further information:
Planet Energy (Ontario) Corp.