In response to some concerns I’ve heard, the following stumpers were sent to Chatham-Kent Hydro. The answers will be posted when received. I intend to be tough with Chatham-Kent Energy to make sure they are being fair to our families, seniors and businesses. They seem to be running as a corporation intent on maximizing privatized value instead of serving the best interests of ratepayers.
I received some information from a concerned ratepayer who says there is a new Chatham-Kent Hydro policy in which payment arrangements will no longer be accepted for customers experiencing difficulties.
- Hydro used claim that they worked with customers to find acceptable payment options, and encouraged customers to contact them to make arrangements. What changed, and why does Chatham-Kent Hydro apparently now prefer to disconnect customers as opposed to helping accommodate them to pay their bills?
- The Hydro Conditions of Service document is silent with respect to the role of security deposits already on file when a customer faces a disconnect notice. This seems to make it possible for hydro to disconnect a customer despite holding a deposit of greater value than the past due balance. I am aware that Hydro has also threatened to disconnect customers who could not pay a deposit demand all at once, despite having no account balance owing. Everything in the disconnection policy assumes that no deposit is held in escrow.How does Hydro handle a situation in which they intend to disconnect a customer who has paid a security deposit that exceeds the amount owing?
- Will Chatham-Kent Hydro disconnect a customer who has a deposit on file sufficient to cover the past due bill? Have any customers with a zero account balance ever been threatened with or actually disconnected for not paying a deposit on time?
- Why has Hydro demanded, on threat of disconnection, that some customers pay a deposit in excess of 1.75% of the highest average bi-monthly bill (2.5% calculated monthly)?
- Why is Hydro using the threat of disconnection to compel the payment of a security deposit and increase the hardship of families?
- Some agencies have attempted to assist hydro customers facing disconnection, but they are thwarted by high deposit demands that have to be paid before any amount is applied to their account. What is Hydro doing to accommodate social organizations who wish to help?
- How many complaints have been received by people who started getting significantly higher bills once a smart meter was installed, independent of time-of-use billing?
- Time-of-use billing has been implemented September 17th. Based on previous electricity consumption, will the new billing scheme be revenue-neutral, or will average families be paying more?
I would appreciate receiving answers as soon as possible.
A response has been received finally, as follows:
November 5, 2010
(Too late for the election, quelle surprise.)
Response to email received from Austin Wright September 30, 2010:
1. I received some information from a concerned ratepayer who says there is a new Chatham-Kent Hydro policy in which payment arrangements will no longer be accepted for customers experiencing difficulties.
Hydro used claim that they worked with customers to find acceptable payment options, and encouraged customers to contact them to make arrangements. What changed, and why does Chatham-Kent Hydro apparently now prefer to disconnect customers as opposed to helping accommodate them to pay their bills?
a. Please see Press Release from the Ontario Energy Board dated October 1, 2010 which indicates an Arrears Management Program which allows specific payment arrangements allowable to residential customers for electricity charges.
2. The Hydro Conditions of Service document is silent with respect to the role of security deposits already on file when a customer faces a disconnect notice. This seems to make it possible for hydro to disconnect a customer despite holding a deposit of greater value than the past due balance. I am aware that Hydro has also threatened to disconnect customers who could not pay a deposit demand all at once, despite having no account balance owing. Everything in the disconnection policy assumes that no deposit is held in escrow.
How does Hydro handle a situation in which they intend to disconnect a customer who has paid a security deposit that exceeds the amount owing?
a. Please see Press Release from the Ontario Energy Board dated October 1, 2010 which indicates security deposits are to be applied to amounts owing before entering into arrears payment agreement.
3. Will Chatham-Kent Hydro disconnect a customer who has a deposit on file sufficient to cover the past due bill? Have any customers with a zero account balance ever been threatened with or actually disconnected for not paying a deposit on time?
a. Please see Press Release from the Ontario Energy Board dated October 1, 2010 which indicates security deposits are to be applied to amounts owing before entering into arrears payment agreement.
b. In answer to your question “Have any customers with a zero account balance ever been threatened with or actually disconnected for not paying a deposit on time?” There have been instances where customers have received disconnection notices and have been disconnected for not paying a security deposit required under our Conditions of Service sections 2.4.3 for deposit requirement and 2.2 for Disconnection Information.
4. Why has Hydro demanded, on threat of disconnection, that some customers pay a deposit in excess of 1.75% of the highest average bi-monthly bill (2.5% calculated monthly)?
a. Please see attached Conditions of Service sections 2.4.3.5 for the calculation of security deposit and sections 2.4.3 for deposit requirement and 2.2 for Disconnection Information.
5. Why is Hydro using the threat of disconnection to compel the payment of a security deposit and increase the hardship of families?
a. Please see attached Conditions of Service sections 2.4.3 for deposit requirement and 2.2 for Disconnection Information.
6. Some agencies have attempted to assist hydro customers facing disconnection, but they are thwarted by high deposit demands that have to be paid before any amount is applied to their account. What is Hydro doing to accommodate social organization who wish to help?
a. We have worked with and continue to work with various organizations within the Chatham-Kent Communities such as Ontario Works, Salvation Army and United Way. There are additional programs scheduled to come into force for January 1, 2011 that will further assist specific residential customers in managing their electricity bills and payments thereof. These changes can be found on the Ontario Energy Board’s website, see below, and deal with low-income eligible customers: http://www.oeb.gov.on.ca/OEB/Industry/Regulatory+Proceedings/Policy+Initiatives+and+Consultations/Electricity+Distributors+-+Customer+Service
7. How many complaints have been received by people who started getting significantly higher bills once a smart meter was installed, independent of time-of-use billing?
a. We are not aware of complaints that are related to smart meter installation and higher bills.
8. Time-of-use billing has been implemented September 17th. Based on previous electricity consumption, will the new billing scheme be revenue-neutral, or will average families be paying more?
a. Attached please find frequently asked questions and answers relating to Time of Use pricing which may be found at www.ckhydro.com and www.oeb.gov.on.ca. It is important to understand that moving to TOU pricing may increase or decrease the commodity portion of each individual residential customer’s bill. Much will be dependant upon when the residential customer consumes electricity and which period, under Time of Use pricing, that customer consumes.
If you have any further questions please contact Customer Service at 519-352-6300.
The answer seems to be that Chatham-Kent Hydro did indeed change the rules, and operated in this grey area with strong-arm tactics until the provincial government released some guidelines on October 1, 2010. From information I have received, it appears they are already attempting to circumvent the new rules, which seem to have escaped public notice. Chatham-Kent Hydro is certainly not making sure customers know about the new OEB rules.