Cancelled contracts carry huge costs
In the last two years, anyone who signed or renewed energy contracts has paid more than if they had stayed with their local utility.
But if they try to get out early, they’re hit with big penalties.
On Your Side has helped many people get out of contracts without fees because they were older, living on low income or obviously confused about what they signed.
Agata Falkowski-Ham: Her grandparents, both in their eighties with limited English, were paying 40 cents a cubic metre for gas – about one-third higher than the Enbridge Gas price (29 cents).
They were clients of Ontario Energy Savings Corp., which wanted $800 to cancel the contract.
I helped her grandparents get out penalty-free. Then, I went to work for her mother.
A 60-year-old widow, she had signed electricity contracts with two companies – Direct Energy and Universal Energy Corp. – at the same time.
Direct Energy released her, but Universal did not. Spokesperson Jonathan Drummond said the mother had consulted her daughter before reaffirming the contract.
Falkowski-Ham insisted she was out of town and had not discussed the deal with her mother.
Universal agreed to cancel without penalty after getting proof the widow’s only income was $639 a month from a survivor’s allowance.
Juan Molina: He had a contract for gas and electricity with Ontario Energy Savings Corp., but signed new contracts at the door with Superior Energy Management.
OESC asked him to come back and he agreed. That led Superior to impose cancellation charges for the two new contracts.
"I agreed to allow Juan out of his contract (reluctantly)," said Greg McCamus, president of Superior, after I appealed on his behalf paydayloans. "He seems like he has a lot of financial issues and made a mistake by signing another contract when he had an existing contract in place."
Wendi Maroon: Her mother, 73, had a gas contract with Universal Energy. Later, she signed with OESC when offered lower rates.
Universal Energy charged cancellation fees, but relented.
"If the family provides documentation that Mrs. Maroon was over 70 at the time of signing the contract, UEC will cancel without fee," Drummond said.
The daughter had been told there was no policy of releasing seniors from contracts. She was relieved to hear her mother would no longer get letters from a collection agency.
Whitney Slattery: A first-year college student living in her own apartment, she signed a five-year electricity deal last fall with Superior Energy.
"When I got my hydro bill, it was double its normal cost of about $50," she said. "I called Superior Energy and was told that it would cost me $753 to cancel."
McCamus said the contract and reaffirmation call were done properly, but he would not hold her to the deal.
"She is so agitated and obviously confused and frustrated that I don’t know if she is capable of understanding our offer," he said after listening to her calls.
Remember you have a choice. You can say no to energy sellers at the door. If you can live with floating prices, you may pay less with your utility – and you won’t get penalized if you want to end the relationship.
Write to onyourside@thestar.ca or visit www.ellenroseman.com