Friday, December 17, 2010

Retailer's Scam

Someone posted this yesterday:

A 300 dollar a month hydro bill is just unacceptable,direct energy takes a
good chunk of the bill for delivery? of electricity?,there"s something wrong
there, as well, and i am in the process of terminating that contract. I would
suggest everyone else to check their bill and look to see if direct energy has
slithered it's way to your bill and so the same.

Direct Energy is one of those retailers who claim they can save you money. You will not be charged Time of Use billing, but what these retailed do NOT tell you when you sign up is you will be charged the Provincial Benefit (it shows as a separate line item). It is also known as the Global Adjustment. This more than doubles your rate. Hence why they won't tell you about it. You can see what the extra charge is at the IESO website.

Today it is low, but I have seen it way up to 4.50c in the summer. Demand is higher hence the lower PB. This extra charge is what the government has agreed to pay providers for power regardless of the spot price. The "benefit" isn't for you, it's for the producers of power to protect them from wild price swings (read more profit).

Now this person wants to get out of his contract. That will cost him big time. They wanted $1500 from me. But READ THE CONTRACT, there is a perfectly legal way to get out of it and pay nothing. Note the part about if you move or if someone else pays for the power. The contract is null and void. Make note of that last part, SOMEONE ELSE PAYS THE POWER. If you transfer your billings to someone else, HydroOne has to make a brand new account. That leaves you with just the retailer account, but you will never have any more consumption, so you will owe them nothing. But be prepared for the retailer to hound you, they are me. Every time they call just say "F U!" and hang up.


  1. The contract that i signed has no stipulations,as a matter fact the back of the contract is blank,
    does that mean it,s not a legal contract? on the front it says that the terms are on the back of the document but there are none to be found,any lawyers out there?

  2. That's interesting. I'd definitely take that to a lawyer.

  3. Re ; transfer your billing to someone else,
    what is the procedure for that? If my name is on the bill could i cancel the account and put it in my wife's name? to switch the account over does it have to be paid in full? there is a procedure
    one would have to adhere to i would imagine,maybe you could simplify this for me and anyone else who might have some questions

  4. This might not work for everyone. You will have to call H1 and ask them if a new account is created if put in someone else's name. Generally H1 doesn't care as long as someone pays.

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