Like any commodity, electricity and natural gas prices go up and down with the markets. In some provinces, you have a choice when it comes to who will supply your power – a public or a private utility. Ontario and Alberta have deregulated both utilities, and in Manitoba and B.C., you can pick your natural gas provider.
But since deregulation, consumers have complained about pushy door-to-door sales from utility marketers, leading some to enter into contracts that have raised their bills by hundreds or even thousands of dollars. So should someone knock on your door to convince you to switch utility companies, here are some tips on how not to get charged up:
Be aware that you don’t have to switch energy retailers. You can maintain the status quo, or default, position and stay with your current utility. Your supplier may offer long-term, fixed-rate contracts if you want reassurance that your bills won’t fluctuate.
Contracts may not always be the best choice. Fixed-rate contracts provide peace of mind and can save you money in the event of short-term market spikes, but over the long-term it’s not a sure bet to savings. When comparing retailers to the public utility in Ontario, 56 per cent of consumers would have saved by locking in their gas rates; 44 per cent of the time they would have lost money. However, when it comes to electricity, 100 per cent of Ontario consumers would have lost money with even the best retailer rate when compared to the public utility.
Read the fine print. You can’t rely on any verbal promises made by sales people unless those promises are also in the contract’s terms and conditions.
Know your rights. If you feel pressured into signing a contract, just say no. If you signed a contract and felt you were misled – or were switched to a different provider without your permission – act immediately and file a complaint with your province’s consumer protection branch. You have as little as 10 days to exit your contract without penalty.
Conserve your energy. Consider investing in an energy audit of your home to learn how you can improve energy efficiency, like caulking and weather stripping, or changing windows and furnaces.
