Market Deregulation

Delivering your electricity

A major change to the Electricity Act in 1999 stated that public commissions (PUCs) could no longer operate electric utilities. Instead, private companies were established to undertake this business. As a result Festival Hydro Inc. was established as in September 2001 as an independent company that distributes electricity in Stratford and the six surrounding communities of Brussels, Dashwood, Hensall, St. Marys, Seaforth and Zurich.

Private retailers may want your business

The Ontario government, in May 2002, opened the electrical power market to private electricity retailers. This means that you may be solicited by companies selling electricity, just as you have been by companies selling natural gas.

All customers are free to switch electricity suppliers, but would be wise to do comparison shopping before signing any contracts. To help you, we have listed some of the questions you may want to ask prospective suppliers.

Just a reminder to all residential and designated customers who receive a fixed price of 4.7 cents per Kwh and 5.5 cents per Kwh over 750 Kwh: If you sign an electrical contract with a retailer after December 1, 2002, you will be charged the retailer price and will no longer be eligible for the fixed price.

Remember, don't give anyone a copy of your electricity bill, and don't sign any "rebate" cheques.

Remember, too, that you don't have to ever sign a contract with a retailer. Your local utility will continue to deliver power to your home whether you switch suppliers or not. You can still count on the same dependable service.

If you have concerns about an electricity retailer, remember that the Ontario Energy Board (OEB) has the responsibility to investigate complaints. You can reach the OEB Customer Information Centre by calling toll-free 1-877-632-2727.

Basic questions to ask electricity retailers:

• What's the name of the supplying company?
  
• Does the Company have a valid license (from the OEB) to sell electricity?
  
• How long has the company been in business?
  
• How many customers does it have?
  
• What are the terms of the agreement?
  
• What is the price per kilowatthour for the electricity? Will the price vary?
  
• What other charges are included in the overall rate?
  
• How are savings calculated?
  
• Are there signing bonuses or other promotions?
  
• What is the length of the contract?
  
• When does service begin?
  
• Can I cancel the contract? Is there a penalty?
  
• Is there an option to buy "Green Power" - renewable power from sources such as wind, solar or hydro-electric?
  

More information

For the answers to frequently asked questions regarding deregulation and the new electricity market, visit www.oeb.gov.on.ca. The Ontario Energy Board (OEB) has an extensive website which can provide you with an abundance of information regarding the new electricity market.