Retail Supplier Agrees to Stop Soliciting, Enrolling Mass Market Customers for Three Years, Will Pay $120,000 in Settlement

A retail supplier has agreed to not solicit or enroll mass market customers for a three-year period, and will pay $120,000 (Canadian $) under a settlement approved by the Ontario Energy Board.

Specifically, Blue Power Distributed Energy Corp./morEnergy Savings Corp. (Blue/morEnergy) will pay a $120,000 administrative penalty to resolve a proceeding instituted by the Ontario Energy Board after the Board alleged various contraventions of Ontario law and regulation.

Additionally, Blue/morEnergy has agreed not to solicit or sign any new contracts with low volume customers for a period of three years from December 31, 2012

According to a news release from the Ontario Energy Board, "[t]he agreement follows a recent inspection by the Board's Regulatory Compliance staff. It found evidence suggesting that Blue/morEnergy breached its legal and regulatory requirements in two main areas:

"• Blue/morEnergy sales agents were signing consumers to contracts without the consumer's knowledge or consent;

"• The company did not make proper verification phone calls to consumers who entered into contracts over the Internet."

The company has agreed to send a notice to customers:

1. who signed a contract after October 11, 2011 during an in-person visit by a sales agent equipped with an electronic tablet such as an iPad; and

2. whose contracts were not verified.

These customers will have the option to terminate the contract without penalty. As set out in the settlement agreement, customers who wish to continue with their contracted price with Blue/morEnergy can request to do so.

According to a news release from the Ontario Energy Board, "Board staff also conducted a Contract Pricing Audit which revealed that incorrect price comparisons were provided to consumers in some instances. Affected customers will be notified by Blue/morEnergy and will be given the option to opt out of their contract with Blue/morEnergy and will be provided with a corrected price comparison form."

Blue/morEnergy has agreed not to re-apply for a submeter license from the Board for a period of three years.