OEB code amendments create province-wide standards for customer service
TORONTO, July 2 /CNW/ - Today the Ontario Energy Board (the Board) issued amendments to the Distribution System Code, the Retail Settlement Code and the Standard Supply Service Code to enhance customer service rules for residential customers and create province-wide standards for electricity utilities across the province.
The changes create rules specific to disconnection for non-payment, security deposits, arrears management programs, equal payment plans, bill issuance and payment, correcting billing errors, allocating partial payments between electricity and non-electricity costs, and managing customer accounts.
Examples include:
- Ensuring customers receive at least 10 days notice before their
service is disconnected for non-payment;
- Making arrears management programs available to residential customers
who qualify and are unable to pay their electricity bill;
- Ensuring security deposits are applied against any arrears before a
disconnection notice can be issued to a residential customer;
- Making equal monthly payment plans available to residential
customers; and
- Providing a 60-day notice period if any regular resident at a
customer's home faces a significant health risk if their electricity
supply is disconnected.
The amendments flow from a Board-initiated consultation process concerning how electricity distributors provide service to their customers.
Most of the amendments will take effect on January 1, 2011. The new arrears management programs and equal monthly payment plans will come into force on October 1, 2010 and April 1, 2011, respectively.
For more information please refer to the customer service rules backgrounder at http://www.oeb.gov.on.ca/OEB/_Documents/Press+Releases/bckgrndr_dsc.pdf.
The Ontario Energy Board regulates the province's electricity and natural gas sectors in the public interest. It envisions a viable and efficient energy sector with informed consumers and works toward this vision through regulation that is effective, fair and transparent.
For more information on the Board, please visit our web site at www.oeb.gov.on.ca or contact the Consumer Relations Centre at 416-314-2455 or toll-free at 1-877- 632-2727.
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Backgrounder Summary of Customer Service Code Amendments
July 2, 2010
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The changes listed below outline new Ontario Energy Board amendments to the Distribution System Code (DSC), the Retail Settlement Code (RSC) and the Standard Supply Service Code (SSSC) that enhance customer service rules and create province-wide standards for electricity utilities across the province.
1. Bill Issuance & Payment
These amendments clarify issues such as when a bill is considered paid and when late payment charges can be applied.
Coming into force on January 1, 2011.
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Current Rule(s) Revised Rule(s)
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No related code rules. The minimum payment period (before a late
(Practices vary from payment penalty can be applied) will be at least
utility to utility.) 16 days from the date the bill was issued to the
customer.
The date on which the bill was issued is
determined to be three days after it was printed
if sent by mail or on the date on which an email
was sent over the internet.
A bill payment is deemed to be received from the
customer: three days before it is received by
the distributor if sent by mail; on the date
when the payment is acknowledged by a bank, or
when the credit card payment is accepted by the
financial institution.
Any payment made after 5:00 p.m. is still
effective on the day the payment is made. If a
due date is a non-business day, it is extended
to the next business day.
If a bill includes charges other than
electricity charges, any payment must first go
directly to the electricity charges and then, if
funds are remaining, to the other charges. If
payment is sufficient to cover electricity
charges, the distributor shall not issue late
payment charges, a disconnection notice or
disconnect the electricity supply. This applies
to joint billing agreements when they are
renewed, or after two years, whichever comes
sooner.
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2. Disconnections for Non-Payment
Disconnection Notices
These amendments include standards clarifying notification processes for a distributor prior to disconnecting a customer.
Coming into force on January 1, 2011.
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Current Rule(s) Revised Rule(s)
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The Distribution All customers must receive 10 days notice before
System Code recommends being disconnected for non-payment.
distributors provide
no less than 7 Residents who have provided documentation from a
calendar days notice physician that disconnection will pose a
before disconnecting significant health risk, must receive 60 days
a customer for notice before being disconnected for non-
non-payment. payment.
Section 31 of the When a disconnection notice is issued in a
Electricity Act states building with multiple units, and a master
that a distributor may meter, a copy of the notice must be posted in a
disconnect a property conspicuous place in the building.
if any amount payable
by a person is overdue. Disconnection notices sent to residential
customers must contain prescribed information,
This section also such as the earliest and latest date
states that a disconnection may occur, the forms of payment a
distributor shall customer may use, that a Board-prescribed
provide reasonable arrears management program is available, and
notice of the proposed that a disconnection may take place whether or
shut-off by personal not the customer is home at the time.
service or prepaid
mail or by posting the
notice on the property
in a conspicuous place
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Disconnection Procedures
These amendments include standards around how and when a customer can be disconnected and how payment can be made to avoid disconnection.
Coming into force on January 1, 2011.
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Current Rule(s) Revised Rule(s)
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No related code rules. Distributors must make a reasonable effort to
(Practices vary from contact the customer one final time, in person
utility to utility) or by telephone, prior to disconnecting service
at least 48 hours before the scheduled
disconnection date. There is certain prescribed
information that a distributor must provide,
such as advising of the potential availability
of an arrears program.
If a distributor has been unable to contact a
customer 48 hours before a planned
disconnection, they should generally make a
reasonable attempt to communicate with the
customer at the door (subject to consideration
of the safety and security of utility field
staff).
Distributors must, at a minimum, have the
facilities and staff available during regular
business hours so residential customers can pay
overdue amounts by credit card.
When a distributor visits a customer's property
to disconnect service, customers must be allowed
to pay overdue amounts by credit card (and any
other form of payment the distributor wishes to
accept).
Distributors should reconnect a property within
two business days of payment in full or entering
into an arrears management agreement 85% of the
time.
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Suspending Disconnection Action
These amendments include clarifying the role of a registered charity, government agency, social service agency or other third parties in suspending a notice of disconnection.
Coming into force on October 1, 2010.
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Current Rule(s) Revised Rule(s)
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No related code rules. If, during the disconnection notice period, a
(Practices vary from registered charity, government agency or social
utility to utility) service agency advises a distributor they are
assessing whether a residential customer is
eligible for bill payment assistance, the
distributor must suspend disconnection action
for a period of 21 days after receiving
notification from the agency.
If, during the disconnection notice period, a
third party who had previously been designated
by the customer to receive any disconnection
notices, advises a distributor they are
attempting to arrange assistance to help the
customer pay their bill, the distributor must
suspend disconnection action for a period of
21 days.
A distributor must act on the disconnection
notice within 11 days of its issuance or the
lifting of a suspension. If disconnection does
not occur within 11 days from the date of the
notice or the lifting of the suspension, the
distributor must issue a new disconnection
notice and start the process once again.
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3. Security Deposits
These amendments set common standards around how large a security deposit can be and how it is applied to payment arrears. (The list of current rules below outlines only those rules relevant to the corresponding amendments. It is not an exhaustive list of the security deposit rules set out in the Distribution System Code).
Coming into force on January 1, 2011.
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Current Rule(s) Revised Rule(s)
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Customers may pay a Residential customers can pay a required
required security deposit, an increase in a security deposit or a
deposit in equal replacement of a deposit applied against
instalments over at arrears, in equal instalments over at least six
least four months. months.
Under the Distribution There must be a review of the security deposit
System Code, when a during the year after the first anniversary of
customer has received the first instalment payment.
more than one
disconnection notice A residential customer's average monthly
in a relevant 12-month consumption over a 12-month, consecutive period
period, the maximum in the last two years, must always be used to
amount a distributor calculate the maximum amount a distributor can
can collect for a collect for a security deposit.
security deposit is
equivalent to the Security deposits must be applied against any
customer's highest arrears and be insufficient to cover any amounts
actual or estimated owing before a disconnection notice can be
monthly consumption, issued to a residential customer.
within the most recent
12 consecutive months When a security deposit has been applied against
in the past two years. any arrears, the customer may have to repay the
security deposit, and be allowed to repay in
equal instalments over at least six months.
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4. Equal Monthly Payments
These amendments require the option for all residential customers to join an equal monthly payment plan.
All the new equal billing rules are coming into effect April 1, 2011.
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Current Rule(s) Revised Rule(s)
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Under the Standard Distributors are required to offer all
Supply Service Code, residential customers receiving standard supply
a distributor may offer service the option to join an equal monthly
an equal billing plan payment plan.
option to all standard
supply service Only customers that are in arrears and have not
customers, but it is entered into an arrears payment agreement may be
up to their discretion. refused an equal monthly payment option.
Customers can join equal monthly payment plans
any time of the year.
Distributors may require customers who join an
equal monthly payment plan to also join an
automatic payment withdrawal plan if the billing
cycle is less frequent than monthly.
Residential equal payment customers who
participate in automatic payment arrangements
must be given a choice of at least two dates
within a month for automatic payments to be
withdrawn.
Distributors may continue to issue bills on a
monthly, bi-monthly or quarterly basis.
Utilities will review customer's monthly billing
plans quarterly or semi-annually and adjust the
monthly equalized payment if electricity
consumption or approved charges have changed
materially.
Utilities are required to reconcile all of their
equal monthly payment plans once during the
calendar year but not on the 12th month
anniversary of a customer joining the plan. If a
customer is in the first year of a plan, they
may be reconciled earlier.
If the annual reconciliation shows that the
customer is owed an amount equal to or exceeding
the customer's average monthly billing, the
amount will be credited to the customer's
account. The customer will be notified of this
credit and will have 10 days to request a refund
cheque instead of the credit on their bill.
If the annual reconciliation shows that the
amount owed to the customer is less than the
average billing amount, the amount will be
credited to the customer's account.
If the annual reconciliation shows that the
customer owes an amount equal to or exceeding
the customer's average monthly billing, the
distributor shall recover the balance over the
first 11 months of the following year's equal
monthly payment plan.
If the annual reconciliation shows that the
amount the customer owes is less than the
customer's average monthly billing, the
distributor may collect the full amount by a
charge on the bill in the 12th month of the
equal monthly payment plan.
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5. Arrears Management Programs
These amendments require distributors to establish arrears management programs for customers.
Coming into force on October 1, 2010.
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Current Rule(s) Revised Rule(s)
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No related code rules Utilities must make arrears management programs
(Practices vary from available to any residential customer unable to
utility to utility) pay their electricity charges. In the case of
distributors who also collect water, sewer and
other charges, these amendments apply only to
the electricity charges.
Any security deposit must be applied to the
amounts owing before entering into an arrears
payment agreement.
Customers may be required to make a down payment
of up to 15% of the arrears plus any accumulated
late payment charges (not including other
service charges such as reconnection charges)
when entering into an arrears management
agreement.
If a customer owes less than twice their average
monthly bill after applying the security deposit
and down payment, the minimum length of time to
pay the remaining amount is five months.
If a customer owes more than twice their average
monthly bill after applying the security deposit
and down payment, the minimum length of time to
pay the remaining amount is 10 months.
Distributors can cancel the agreement if a
customer defaults on the arrears payment or
current bill payment more than once.
Customers must be given 10 days written notice
before an agreement can be cancelled, and the
agreement must be reinstated if the customer
pays in full before the cancellation date.
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6. Billing Adjustments
These amendments clarify how a distributor can correct instances of a customer being over- or under-billed over a period of time.
Coming into force on April 1, 2011.
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Current Rule(s) Revised Rule(s)
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Under the Retail Over or under-billing adjustments are permitted
Settlement Code, over a period of up to two years for all classes
where the customer has of customers. Note that the Limitations Act,
been over billed, the 2002 provides a standard two-year limitation
customer will be period for all actions in debt (subject to any
credited for the considerations of discoverability).
amount for up to a
6 year period If a customer has been over-billed by an amount
equal to or greater than the customer's average
Where the customer has bill, the customer has the option of receiving a
been under-billed, cheque or a credit on their next bill.
the customer will be
charged the amount not If a customer has been over-billed and the
previously billed. For amount is less than the customer's average bill,
residential customers the customer will receive a credit on their next
not responsible for the bill. If the customer has outstanding arrears,
error, the customer may the distributor may apply the over-billed amount
be charged for up to to the arrears first, and may credit or repay
2 years. For non- the balance to the customer.
residential or
customers responsible If a customer is under-billed and is not
for the error, the responsible for the error, the customer is
allowable time is the allowed to pay the under-billed amount in equal
length of time they instalments over the same amount of time as they
were under billed. were under-billed for up to a maximum of two
years. (e.g. if a customer has been under-billed
for five months, they will have five months to
pay the under-billed amount).
When a customer is responsible for the under-
billing error, the distributor may require
payment of the full amount on the next bill or
on a separate bill.
These rules do not apply when a distributor has
under-billed or over-billed a customer but
issues a corrected bill within 16 days of the
date the incorrect bill was issued.
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7. Opening and Closing Accounts
These amendments clarify issues around the opening and closing of accounts, including those in rental units.
Coming into force on April 1, 2011
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Current Rule(s) Revised Rule(s)
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Under the Distribution If a distributor opens a new account based on a
System Code a person request from a third party, a letter must be
may become a customer sent to the new user within 15 days of the
of the distributor by opening of the account. The account will not be
implied consent (for set up if the new user has not approved the
example, by accepting opening of the account within 15 days of the
utility service). letter. However, a solicitor or person with
Power of Attorney can agree on behalf of the new
customer to the opening of the account.
Distributors can only recover charges from a
person who has agreed in writing to become a
customer.
When a tenant customer moves out of a rental
unit, distributors cannot seek to recover future
charges from any other person, including the
landlord, unless that person has agreed in
writing to assume responsibility for the
account.
A distributor and a landlord may enter into an
agreement where the landlord agrees to
automatically assume responsibility for paying
for continued service after the closure of a
tenants account.
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For further information: Media Inquiries: Paul Crawford, Ontario Energy Board, 416-544-5171; Public Inquiries: 416-314-2455 Or 1-877-632-2727
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