O. Reg. 241/16: GENERAL

 

ontario regulation 241/16

made under the

Energy Consumer Protection Act, 2010

Made: June 22, 2016
Filed: June 24, 2016
Published on e-Laws: June 24, 2016
Printed in The Ontario Gazette: July 9, 2016

Amending O. Reg. 389/10

(GENERAL)

1. Subsection 1 (2) of Ontario Regulation 389/10 is amended by striking out “16” and substituting “17”.

2. (1) Subparagraph 1 iv.1 of section 5 of the Regulation is amended by striking out the portion before sub-subparagraph A and substituting the following:

iv.1 The requirements to qualify for any financial or other assistance from the Government of Ontario or otherwise, including whether the consumer is entitled or may be entitled to the assistance,

. . . . .

(2) Sub-subparagraph 1 v C of section 5 of the Regulation is revoked and the following substituted:

C. any financial or other assistance from the Government of Ontario or otherwise to which the consumer is or may be entitled.

(3) Subparagraph 6 iii of section 5 of the Regulation is amended by adding “unless clause 5.1 (2) (d) or (e) applies with respect to the document” at the end.

(4) Paragraph 12 of section 5 of the Regulation is revoked and the following substituted:

12. Directing an energy distributor to provide electricity or gas to the consumer under a contract if the contract has not been verified.

(5) Section 5 of the Regulation is amended by adding the following paragraph:

15. Requiring at any time, including upon the cancellation of a contract by the consumer, the return or repayment of,

i. a gift card, gift certificate or other financial incentive of any kind that has been provided by the supplier to the consumer, or

ii. any equipment, product or service that has been provided by the supplier to the consumer.

3. The Regulation is amended by adding the following section:

Door-to-Door Advertising and Marketing

Permissible door-to-door advertising and marketing

5.1 (1) The rules set out in subsection (2) are established for the purposes of section 9.2 of the Act.

(2) A supplier or salesperson shall not,

(a) advertise, market or otherwise attend in person without being solicited at the home of a consumer where the consumer has indicated by posted sign or otherwise not to do so;

(b) advertise, market or otherwise attend in person without being solicited at the home of a consumer,

(i) on a holiday within the meaning of section 87 of the Legislation Act, 2006, other than a Sunday (subject to subclause (iii));

(ii) before 10 a.m. or after 8 p.m. on a weekday, or

(iii) before 10 a.m. or after 5 p.m. on a Saturday or a Sunday;

(c) advertise, market or otherwise attend in person at the home of a consumer without being solicited more than four times in any 12-month period;

(d) leave with a consumer, at the home of a consumer, a copy of a contract;

(e) provide, in person at the home of a consumer, a gift card, gift certificate or other financial incentive of any kind, or any equipment, product or service, to be redeemed following entry into, amendment of or renewal of a contract;

(f) enter into, verify, amend, renew or extend the term of a contract in person at the home of a consumer; or

(g) after attending in person without being solicited at the home of a consumer, communicate with the consumer by any means more than once in the subsequent 30-day period, unless,

(i) the consumer solicits the communication, or

(ii) the communication is for the purposes of contract verification in accordance with this Regulation.

4. Paragraph 10 of subsection 7 (1) of the Regulation is revoked and the following substituted:

10. A statement,

i. that the consumer may cancel the contract without cost or penalty up to 30 days after receiving the first bill under the contract, in the case of a contract for the provision of electricity entered into before the day Ontario Regulation 241/16 came into force, and

ii. in the case of a contract entered into on or after that day, that the consumer may cancel the contract without cost or penalty up to 30 days after receiving the second bill under the contract.

5. The Regulation is amended by adding the following section before the heading “Verification of Contracts”:

Permissible remuneration

10.1 For the purposes of section 9.3 of the Act, the remuneration provided to a salesperson must not include any remuneration that is based on a commission or on the value or volume of sales.

6. Section 11 of the Regulation is amended by striking out “sections 12 and 13” and substituting “sections 12 to 13.2”.

7. Sections 12 and 13 of the Regulation are revoked and the following substituted:

Verification, general

12. (1) A person shall verify a contract for the provision of electricity or gas to particular premises,

(a) only by telephone in accordance with section 13.1 or, subject to subsection (2), over the internet in accordance with section 13.2; and

(b) only with the account holder for those premises or the account holder’s agent at that time in respect of the premises.

(2) A contract may be verified over the internet only if the Board has issued or made a code, order or rule relating to the internet verification procedure.

(3) Despite subsection 15 (4) of the Act, a contract may be verified no earlier than the 10th day and no later than the 45th day after the day on which a text-based copy of the contract is delivered or provided to the consumer.

(4) An account holder or the account holder’s agent may, by any means that indicates to the supplier or person the intention not to proceed with the contract, give notice to the supplier or to the person verifying the contract not to have the contract verified.

(5) A notice given under subsection (4), other than by personal service or by a telephone call to the supplier or person, is deemed to have been given when sent by the account holder or the account holder’s agent.

Who may verify a contract, third party verification

13. (1) A contract may be verified by telephone in accordance with section 13.1 only by an individual who satisfies the following criteria:

1. The individual’s employer is not a party to the contract being verified, nor an affiliate or partner of a party to the contract.

2. The individual must not receive any remuneration or other compensation or benefit,

i. from the supplier or from an affiliate or partner of the supplier, or

ii. that is determined, directly or indirectly, by reference to the number of contracts that are verified or the percentage of contracts that are verified.

3. The individual must have successfully completed such training for individuals who verify contracts by telephone as may be required by a code, order or rule issued or made by the Board.

(2) A contract may be verified over the internet in accordance with section 13.2 only by a person who satisfies the following criteria:

1. The person must not be a party to the contract being verified, nor be an affiliate or partner of a party to the contract.

2. The person must not receive any remuneration or other compensation or benefit from the supplier or from an affiliate or partner of the supplier that is determined, directly or indirectly, by reference to the number of contracts that are verified or the percentage of contracts that are verified.

(3) In this section,

“affiliate” means an affiliate within the meaning of the Business Corporations Act;

“partner” means a partner in a partnership under the Partnerships Act, or a general or limited partner in a limited partnership under the Limited Partnerships Act.

Verification process, telephone

13.1 Where a contract is verified by telephone, the supplier shall ensure that,

(a) the process complies with any code, order or rule issued or made by the Board relating to the verification procedure;

(b) if, at any time during the verification process, the person who is verifying the contract is made aware by the account holder or the account holder’s agent of an act or omission that appears to be a violation of section 5.1 or an unfair practice of the supplier, or has reasonable grounds for believing that the supplier has committed an unfair practice, whether at the time of soliciting, negotiating or entering into the contract or after, the person does not proceed with the verification process;

(c) if the person who is verifying a contract is advised that the account holder or the account holder’s agent did not receive a text-based copy of the contract or the disclosure statement, the person does not proceed with the verification process;

(d) if the person who is verifying the contract does not proceed with the verification process in accordance with clause (b) or (c), the person advises the account holder, or the account holder’s agent, and the supplier of the reason for not proceeding; and

(e) the person verifying the contract makes a recording of the telephone call and advises the account holder or account holder’s agent that the telephone call is being recorded.

Verification process, internet

13.2 Where a contract is verified over the internet, the supplier shall ensure that,

(a) the process complies with any code, order or rule issued or made by the Board relating to the verification procedure;

(b) the verification process is automatically terminated if the responses of the account holder or the account holder’s agent indicate that,

(i) there has been an act or omission that appears to be a violation of section 5.1 or an unfair practice of the supplier at the time of soliciting, negotiating or entering into the contract or after, or

(ii) the account holder or the account holder’s agent did not receive a text-based copy of the contract or the disclosure statement;

(c) if the verification process is automatically terminated in accordance with clause (b), the account holder, or the account holder’s agent, and the supplier are advised of the reason for the termination; and

(d) communications over the internet between the person verifying the contract and the account holder or the account holder’s agent are recorded and maintained, and the account holder, or the account holder’s agent, is advised that this will be the case during the internet verification process.

8. (1) Paragraph 2 of subsection 15 (2) of the Regulation is revoked.

(2) Paragraphs 4 and 5 of subsection 15 (2) of the Regulation are revoked and the following substituted:

4. The renewal or extension form must clearly indicate that the contract will be renewed or the term of the contract extended if,

i. the consumer,

A. clearly marks on the form the renewal or extension option he or she has chosen,

B. acknowledges having read and understood the disclosure statement and price comparison applicable to the renewal or extension option he or she has chosen by signing the appropriate acknowledgements on the disclosure statement and price comparison,

C. signs one copy of the form to indicate that he or she agrees with the terms of the renewal or extension option he or she has chosen, and

D. returns the signed copies of the form, disclosure statement and price comparison to the supplier, or

ii. the consumer renews or extends the term of the contract by telephone in accordance with subsection (4).

(3) Subsection 15 (3) of the Regulation is revoked and the following substituted:

(3) A contract is renewed or its term extended only if the consumer takes the action described in subparagraph 4 i or ii of subsection (2).

9. Section 16 of the Regulation is revoked.

10. Section 17 of the Regulation is revoked and the following substituted:

No automatic renewal, extension of contracts

17. (1) A contract may not be renewed, nor its terms extended, automatically.

(2) Subsections 17 (2) and (3), as they read immediately before Ontario Regulation 241/16 came into force, continue to apply to contracts renewed or extended under this section before that date.

11. (1) Clause 21 (a) of the Regulation is revoked and the following substituted:

(a) the supplier fails to meet the requirements of section 28 with respect to the consumer;

(2) Clause 21 (d) of the Regulation is revoked and the following substituted:

(d) the consumer cancels the contract,

(i) not more than 30 days after receiving the first bill under the contract, in the case of a contract for the provision of electricity entered into before the day Ontario Regulation 241/16 came into force, or

(ii) in the case of a contract entered into on or after that day, not more than 30 days after receiving the second bill under the contract;

(3) Clause 21 (f) of the Regulation is revoked and the following substituted:

(f) the contract was automatically renewed or extended.

12. Paragraphs 1 and 2 of subsection 23 (1) of the Regulation are revoked and the following substituted:

1. In the case of a contract entered into before the day Ontario Regulation 241/16 came into force,

i. a fee of not more than $50 for each year, or part year, remaining on the contract if the contract is for the provision of electricity, or

ii. a fee of not more than $100 for each year, or part year, remaining on the contract, if the contract is for the provision of gas.

2. In the case of a contract entered into on or after the day Ontario Regulation 241/16 came into force, a fee of not more than $50, whether the contract is for the provision of electricity, gas or both, and regardless of the term remaining on the contract.

13. Subsection 27 (1) of the Regulation is amended by adding the following paragraph:

3. Ag Energy Co-Operative Ltd. in respect of contracts with its members that it enters into, amends, renews or extends.

14. Section 28 of the Regulation is revoked and the following substituted:

Copies of telephone recordings, internet records

28. (1) If a supplier is required under this Part to make a recording of a telephone call to or by a consumer or maintain a record of communications with a consumer over the internet, or is required to ensure that such a recording is made or such a record is maintained, the supplier shall provide a copy of the recording or record to the consumer not more than 10 days after the consumer requests the copy.

(2) Subsection (1) does not apply if the consumer requests the copy after the later of,

(a) the day that is three years after the day of the telephone call or provision of information over the internet; and

(b) the day that is one year after the effective date of cancellation, termination or expiry of the last contract or last renewed or extended contract between the consumer and the supplier.

Commencement

15. This Regulation comes into force on the later of the day section 2 of the Strengthening Consumer Protection and Electricity System Oversight Act, 2015 comes into force and the day it is filed.