Ontario Energy Board Intends to Fine Retail Supplier $90,000

The Ontario Energy Board intends to fine a retail supplier for alleged contraventions of the retailer code of conduct and a prior Assurance of Voluntary Compliance.

Specifically, the Ontario Energy Board, on its own motion, intends to make an order requiring morEnergy to comply with a number of enforceable provisions and to pay an administrative penalty in the amount of $90,000 for alleged breaches of enforceable provisions.

The Board alleged that morEnergy has contravened sections of Ontario Regulation 389/10, sections of Ontario Regulation 90/99, the Electricity Retailer Code of Conduct and the Code of Conduct for Gas Marketers (the Codes) and the terms of the Assurance of Voluntary Compliance accepted by the Board in EB-2011-0313 dated September 12, 2011.

Among other things, the Board alleged that morEnergy training materials included information about verification contrary to section 7 of Ontario Regulation 90/99 and sections 5.2 (a) and 5.2 (b)(viii) of the Codes and section 1(b) of the Assurance of Voluntary Compliance filed with the Board on September 12, 2011 in EB 2011-0313.

The Board further alleged that morEnergy's contract fails to state that if the consumer cancels the contract within ten days after the consumer acknowledges receipt or is deemed to acknowledge receipt of a text based copy of the contract the consumer is entitled to a full refund of all amounts paid under the contract contrary to section 7(1)(9) of Ontario Regulation 389/10.

Additionally, the Board alleged that consumers entering a third party's website, run by a multi-level marketing agent which facilitates internet agreements for morEnergy, are not provided with the terms and conditions of available contracts, the disclosure statement applicable to each form of contract, and a link to the Board's website, prior to entering their first name, last name and account number, which are then automatically entered onto an enrollment form for the purpose of the contract with the supplier. The Board said that this is contrary to section 9(d) of the Regulation 389/10 which states that the website provides the terms and conditions of available contracts, the disclosure statement applicable to each form of contract and a link to the Board's website, without requiring the consumer to commence a transaction.

morEnergy may request a hearing on the allegations.