Wednesday, November 7, 2007
Response back to BC Government
Rick Kaselj
-----Original Message-----
From: Rick Kaselj
Sent: September 17, 2007 8:41 AM
RE: Response to Superior Energy Scam Email ref# 33994
Thank you very much for reading my letter and I am glad it was able to
assist in better serving the public.
All the best.
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Rick Kaselj - rkaselj@HealingThroughMovement.com
Healing Through Movement - www.HealingThroughMovement.com
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The BC Government Takes Action!
Excellent job, BC Government.
This is an example on how voicing your concerns can lead to change.
Rick Kaselj
----Original Message-----
Sent: September 14, 2007 2:03 PM
Subject: Response to Superior Energy Scam Email ref# 33994
Mr. Rick Kaselj
Dear Mr. Kaselj:
I am responding to your email of June 11, 2007 regarding Superior Energy. My apologies for the delay in this response.
Due to instances like that identified in your email, changes and improvements have been made to the British Columbia Utilities Commission's (BCUC) Code of Conduct for Gas Marketers.
Effective July 5, 2007, the BCUC amended the Code of Conduct for Gas Marketers to require a mandatory recorded third party call verification process be implemented. That call must cover topics outlined by the BCUC such as:
· explaining the program;
· informing customers of their option to cancel;
· outlining the details of the contract; and
· indicating that a letter will be issued by Terasen within 3
business days.
The third party verification also gives the consumer a chance to reconsider and better understand the gas options available thus offering them a greater degree of consumer protection.
Thank you again for writing with your concerns and the action you took to help natural gas consumers here in British Columbia.
Sincerely,
Assistant Deputy Minister
Oil and Gas Division
Ministry of Energy, Mines and Petroleum Resources
Tuesday, October 23, 2007
Angry Vancouver Residence
A number of people sharing their experience with Universl Energy Corporation.
Read More
Tuesday, September 4, 2007
Watch Out for Direct Energy
But Direct Energy rep says cheque doesn't bind people to contract
Niagara Falls Review - Thursday, August 30, 2007 by RAY SPITERI
Receiving a $100 cheque in the mail just might entice some people to pull out a pen and sign on the dotted line.
But not Sharon Ross.
The Niagara Falls woman said she figured there had to be some strings attached to the literature she received in her mailbox Tuesday. She was fuming when she found out what they were.
Read More
Watch Out for Direct Engery
The Tribune - Ontario, ON, Editorial - Saturday, September 01, 2007
I received a letter and a $100 cheque in the mail from Direct Energy out of Toronto and it's in regards to the electricity protection plan.
As said, with the five-year electricity price protection plan, your electricity rate will be 8.5 cents per kilowatt-hour guaranteed for your full five-year term, along with the $100 cheque.
Be careful, and that includes seniors living alone in their homes when reading this twisted contract.
Read More
Tuesday, July 24, 2007
The Alberta Electricity Deregulation Experience?
See what Alberta has to say about electricity deregulation:
http://www.iasa.ca/ED__MainPages/articles.html
T
he Industrial Association of Southern Alberta (IASA) was established in Lethbridge in August, 1983 with the purpose of intervening in the setting of electrical rates. Since that time, IASA has broadened its purpose to include the following:
- to provide a forum for discussion of concerns regarding the cost of doing business in Southern Alberta
- to provide representation on common issues before governments, regulatory boards, commissions and other groups having jurisdiction over any matters affecting industry in Southern Alberta
- to promote the exchange of information
- to promote the efficient distribution of utilities to industries at reasonable prices
- to review any matters that may be beneficial to industries
- IASA currently represents 18 companies in Lethbridge and area. The local industries come from various sectors, including manufacturing and food processing.
Natural gas has been de-regulated in BC. Is electricity next?
It has happened in Alberta.
Power rates skyrocket during hot summer
SUN MEDIA - Tue, July 17, 2007 - By KATIE SCHNEIDER - As the mercury rises during Calgary’s sweltering heat wave, so too are Alberta energy prices as electricity costs have skyrocked to their highest in 10 years.
To read more: http://calsun.canoe.ca/News/Alberta/2007/07/17/4347212.html
Wednesday, July 4, 2007
BC Citizens Express Their Thoughts on Gas Marketers
To here the feedback of BC citizens on their experience with gas marketers, listen to the Bill Good show on Wednseday, July 4, 2007 from 8:30 am to 9:30 am. To listen to the show, visit the Audio Vault at http://www.cknw.com/. Sign into the Audio Vault and go to Wednesday, July 4, 2007 and select 8 am. The audio vault holds the last two to three months of shows.
Coquitlam Takes Action and Protects their Residence
Tuesday, July 3, 2007 the City of Coquitlam took action and protected their residence from door-to-door sales. This bylaw was spear headed by Councilor Richard Steward. The action was taken because the citizens of Coquitlam were complaining about the code of conduct of gas marketers. The council of the city of Coquitlam listened to their residence and took action.
To learn more about the action that the City of Coquitlam council has taken, listen to the CKNW from 7:50 am to 8:10 am. Visit the Audio vault at http://www.cknw.com/. Go to Wednesday, July 4, 2007. The audio vault holds the last two to three months of shows.
Please e-mail Richard Stewart at rstewart@coquitlam.ca and thank him for listening to his citizens and taking action on their concerns.
Please e-mail (feedback@coquitlam.ca) City of Coquitlam on their great work on taking the lead on protecting their citizens.
If you are interested on more information on the feedback from residence in Canadians on how they feel the deregulation of natural gas has affected them, please visit http://bcgasmarketer.blogspot.com/
Thank You to SomethingCool News
Thank you to Fred Johns of SomethingCool News for posting my article on my experience with gas marketers.
To view the article: http://www.somethingcool.ca/backissues/062507/
Thank You Kim Richter - Township of Langley Councillor
I would like to thank Kim for e-mailing me on June 16, 2007 and suggesting the issue of door-to-door marketers should be brought to council.
Monday, July 2, 2007
Automatic roller over
When my contract ends with a gas marketer, it will automaically switch back to Terasan Gas?
No way!
Have a read:
“Customers receive a renewal package a few months before contracts expire, said company spokesperson Joshua Orzech. If people don't respond, their contracts are renewed automatically for another year.” (Direct Energy chided for 'sloppiness' - Jun 09, 2007 - Toronto Star – by Ellen Roseman - http://www.thestar.com/article/223409)
“Direct Energy, like other gas marketers, will roll over an existing contract for a year if the company doesn't hear from you.” (Direct Energy chided for 'sloppiness' - Jun 09, 2007 - Toronto Star – by Ellen Roseman - http://www.thestar.com/article/223409)
Ellen Roseman
Ellen is a columnist with the Toronto Star. She has written numerous articles on gas marketing issues that Ontario residences have faced. I would visit her website if you are looking for more information on gas marketers, personal finance and consumer issues.
http://www.ellenroseman.com/
Cancelling gas fixed rate probably means exit fee
Toronto Star - June 16, 2007 - by Ellen Roseman
A retired couple signed a five-year contract to buy natural gas at a fixed rate. They moved to a condo apartment two years later and didn't need gas heating any more.
Their gas marketer, Direct Energy, asked for a cancellation fee of $524.34 as compensation for breaking the contract.
To Read More - http://www.thestar.com/columnists/article/226033
What will happen if rates go higher than the rate I am paying?
You Will be Charged Retroactive Payment – The gas marketers have the right to apply to the BCUC and request retroactive rate increases because of higher than expected commodity prices. (Gas Marketer's Customer Wins His Release - April 28, 2000 - Toronto Star - by Ellen Roseman)
If you read your contract, your rate is only guaranteed for 12 months.
Don't be pushed into signing deal
Feedback from the Surrey Now on natural gas peddlers.
Surrey Now – June 22, 2007 - Pushy natural gas peddlers are giving some frustrated Surrey residents serious indigestion – by Tom Zytoruk
Pushy natural gas peddlers are giving some frustrated Surrey residents serious indigestion.
Chances are, you've had a gas marketer - or several - come knocking on your door over the past few weeks after the British Columbia Utilities Commission licensed 14 companies on May 1 to sell natural gas at fixed rates over three- and five-year contracts.
Read more: http://www.thenownewspaper.com/issues07/064207/news/064207nn1.html
Letters to Editor - Don't rush into a gas contract
Letters to Editor - Don't rush into a gas contract
North Shore News – Wednesday, June 20, 2007 - "Just say no." You'd think I was talking about drugs, but no, I am talking about those overly persistent natural gas marketers.
They are currently going door-to-door, trying to convince you to pay more for your natural gas now, with the expectation that you "might" save money later on during a four- or five-year contract. They use catch phases like "peace of mind," "ability to budget" and "potential for savings." Usually a polished presentation, but one thing they don't dwell on is the simple guarantee - if you sign, you will pay more in November 2007 than if you don't sign.
To Read More - http://www.nsnews.com/issues07/w061707/064207/opinion/064207le5.html
Saturday, June 23, 2007
No One Hears Silence - Voice Your Opion!
Here is a great example how a customer voiced their opinion on YouTube and how this action of voicing their opinion lead to a company taking action.
http://www.youtube.com/watch?v=Wz7uRmMUSZM
Gas Marketing Tips from the BBB
"The letter will also provide a date by which the consumer must respond to the gas marketer, about 10 days from the time the consumer signed the contract, if the consumer plans to opt out of the agreement without penalty. This is called a cooling-off period. "
There is a great list of questions that consumers should ask gas marketers before signing.
Buyers Tips - Gas Marketers
http://www.bbbvan.org/commontips.html?id=1004
Business Bureau of Mainland BC Estimates that One in Ten Consumer Inquiries Concern Gas Marketers
“Currently rates from different natural gas marketers vary depending on the length of contract, but it's important for people to know that getting a fixed rate will not guarantee you savings,” says Ms. Pasacreta. “Gas is a commodity whose price fluctuates daily – a fixed rate may or may not save consumers money long-term. It's like predicting the stock market.” - says BBB President Lynda Pasacreta
Source:
June 7, 2007
Consumers confused by natural gas choices
Vancouver, BC - Since the deregulation of British Columbia’s natural gas market in May, the Better Business Bureau of Mainland BC estimates that one in ten consumer inquiries concern gas marketers.
http://www.bbbvan.org/page.php?id=455
Vancouver Citzens are Angry About Gas Marketers
Here is a sample of angry Vancouver citizens that have been accosted by gas marketers.
http://www.discovervancouver.com/forum/topic.asp?TOPIC_ID=164036
Contact John Horgan of the NDP
The e-mail I sent him is below and I encourage you to e-mail him.
John Horgan
Malahat-Juan de Fuca MLA
800 Goldstream Ave
Victoria
Phone: 250-391-2801
17-1400 Cowichan Bay Rd, Valley View Centre
Cobble Hill
Phone: 250-733-2521
john.horgan.mla@leg.bc.ca
John,
It is great to see the NDP taking a stand for consumers on the issue of gas marketers.
I am one of the many British Columbians that was pressure into signing a contract.
I have attached letters that I have sent to the gas marketing company, BCUC and I have also e-mailed my MLA.
I have also started a blog on the topic of BC Gas Marketers in order to inform British Columbians on the topic.
http://bcgasmarketer.blogspot.com/
The New Democrats warm BC Residence about Unscrupulous Gas Marketers
The New Democrats warm BC residence about unscrupulous gas marketers. MLA John Horgan reports that he has had senior citizens and recent immigrants that have felt pressure to sign contracts.
MLA John Horgan agrees that consumers have not been protected in this process of choice:
“Based on the stories we have been hearing so far, it certainly seems like the Campbell government has not done due diligence to ensure that consumers were protected once the government decided to deregulate natural gas,” said Horgan. “Consumers aren’t being told what their options are.”
MLA John Horgan recommends consumers don't sign anything and educate yourself on the topic:
“I am encouraging all natural gas consumers to avoid signing anything until they know all their options,” said Horgan. “Consumers should know that they do not need to sign a contract with anyone and that if they don’t take any action they will still continue to receive natural gas from Terasen as they always have.”
Source:
June 04, 2007
Horgan Raises Alarm Over Unscrupulous Natural Gas Marketing Ploys
VICTORIA – New Democrat Energy Critic John Horgan is raising the alarm over complaints of unscrupulous marketing techniques being used by natural gas marketers.
Thursday, June 21, 2007
Few More Questions Answered About Your Gas Marketer Contract
What if I move, am I bound to the contact?
Yes!
What happens when the contact ends?
The gas marketer is allowed to re-new your contract for another year unless you contact them. All the best in contact them.
What is the gas marketer goes bankrupt?
You will be transferred back to Terasan.
Visit Facebook - British Columbia Gas Marketing Scam
If you are a part of Facebook, sign up for British Columbia Gas Marketing Scam.
This group is for those that have been approached, accosted or scammed by a gas marketer that wants you to switch natural gas companies.
Inform yourself on the topic of gas marketers and read about other peoples experience with gas marketers.
Share Your Story with Friends
I e-mailed about 250 friends and shared with them my experience with gas marketers.
I directed them all to my blog as a place they can inform themselves on gas marketers.
One friend e-mailed me back her story:
"I had the exact same gas marketing experience as you. As soon as I closed the door (read signed the contract) I thought I had been scammed. I checked the prices & made the decision the next day to cancel. I have called the company on 3 separate occasions to tell them I don't want their services (was within the 10 day period) and have asked them to send me a formal cancellation notice. I have still received nothing!!!!!!!! " - JB experience with Energy BC
Wednesday, June 20, 2007
Write to the Attourney General
I call British Columbia Government (604-660-2421) to see who oversees the British Columbia Utilities Commision (BCUC - http://www.bcuc.com/ ).
I was told it is an independent body. No provincial minster is responsible for the actions of the BCUC. If I had a concern, I could contact the Attorney Gerneral if I had concerns with the BCUC.
I would encourage you to contact the honourable Wally Oppal and ask what the BCUC was doing for 5 years to protect BC citizens from unethical gas marketers?
Honourable Wally Oppal
Attorney General and Minister Responsible for Multiculturalism
Website
Phone: 250 387-1866
Fax: 250 387-6411
Mail:
PO Box 9044
STN PROV GOVT
Victoria BC
V8W 9E2
E-mail - AG.Minister@gov.bc.ca
Vernon, BC - New gas marketers Eye May 1
Source - http://vernonblog.blogspot.com/search?q=%22gas+marketer%22
By Bobbi-Sue Menard Capital News Contributor Apr 18 2007 - http://www.kelownacapnews.com/
Starting May 1, residential gas consumers in B.C. will have a choice of gas marketers to purchase their natural gas from. The introduction of this program has been in the works for several years. Commercial users of natural gas have had choice in who they purchase their natural gas from for just over two years, and now individual buyers are about to be given that same opportunity. Kelowna and the Okanagan Valley are currently served by Terasen Gas. Terasen provides the infrastructure of pipelines and storage to bring gas to residents and consumers. Terasen makes its profit on those delivery services and no profit on the actual gas itself, an arrangement regulated by the B.C. Utility Commission. Part of that regulation by the BCUC means Terasen does not offer long-term, locked in prices. Terasen has a current strategy in place to keep consumer prices as steady as possible, including supply storage, gas futures pricing and other initiatives.
As of May 1, consumers will now have the option of purchasing longer term fixed rate contracts from gas marketers to lock in their natural gas at specific price over a period of time, giving cost certainty and peace of mind. Scott Webb, communications manager with Terasen Gas, sees the development of a marketplace for consumers to purchase natural gas as a positive thing. “Terasen has worked to bring this to consumers. Customers told us this was what they are looking for, fixed rate options that bring peace of mind,” he said. Webb acknowledges that the cost of energy is going to go up over the long term, and says the open market is not necessarily about guaranteed savings, but about the peace of mind that comes from a locked in price. “The example I like to use is the difference between a fixed rate and a variable rate mortgage… some people like to know what is coming up and need that peace of mind.”
One of the companies stepping into the B.C. natural gas market is Direct Energy. With experience in Ontario and Quebec and a base of large and small corporate customers here in B.C. already, Direct Energy is looking to start serving residential customers as well. Clinton Roeder, vice-president of energy services in Canada for Direct Energy, sees the strength of natural gas choice for consumers as something they will welcome. “The gas is delivered to the customer in the same way, and they have signed up at a stable rate,” he says. Direct Energy will be offering a variety of products and plans for consumers based on time frames from one to five years. The company also provides conservation options and homes services for people looking to reduce their gas bill. With Direct Energy’s experience in other competitive natural gas markets, Roeder sees B.C. consumers as having some excellent positive advantages.
“Really the BCUC and Terasen have done a tremendous job in making a market that is favourable to consumers.” But even if the market is favourable to consumers, Roeder says that doesn’t mean the average customer should throw caution to the wind and lock into the first marketer that comes knocking on their door. “Definitely people should understand the terms and conditions of the contract they are going to sign and if there is something that makes them uncomfortable then they shouldn’t sign it,” says Roeder. Currently on the BCUC web site there are 11 gas marketing companies ready to start wooing customers as of May 1. BCUC Whatever choice a customer makes about their natural gas purchase they will still receive a single bill from Terasen Gas. Terasen has also launched an extensive education campaign for consumers both in print and through the media and on their web site, and Terasen is encouraging consumers to be informed beforehand about the decisions they make.
The ins and outs of contracts
Toronto Star - February 17, 2007 - By Ellen Roseman Toronto Star
Last week, I talked about how a fixed-price gas contract may be renewed automatically if you don't take the right steps to cancel it.
Today, I'll look at what happens when you sign a gas or electricity contract and you want to get out.
Under the law, you have a 10-day cooling-off period to change your mind when you sign a contract with a door-to-door seller.
During the next 60 days, the energy retailer has to call you to see if you understand what you signed and you want to continue. This reaffirmation call is an important safeguard. It gives you a second chance to cancel the contract without penalty. Companies have to record each reaffirmation call and provide you with a copy if you ask for one. (NOTE - This consumer protection measure does not exist for British Columbia residence.) This can be helpful if other members of your household - such as your spouse or your kids, if they're 18 and over - sign the
contract or take the reaffirmation call.
Sophie Farag, a single mother, was away from home last February when her 19-year-old son agreed to a five-year gas contract with Superior Energy Management. She called the company, only to be told she was bound by her son's signature. Any adult can sign for the household. When she called again in September, Superior Energy agreed to lower the contract price to 39.9 cents a cubic metre (from 42.9 cents) because the market rate had dropped. Still, she found it a struggle to pay the bills and asked me for help. I passed along her request to Greg McCamus, president of Superior Energy.
"The reason we have been resisting letting her out of the contract is that we have committed on her behalf to take delivery of gas for five years at the prevailing long-term rates back when
the contract was signed," he explained.
"To cancel her agreement would leave us with 4.5 years of future gas supply without a customer to match it up to."
McCamus agreed to put through the cancellation as a goodwill gesture.
However, he pointed out that Farag had not tried to get out of the contract when she got the verification call.
"I have just listened to a recording where the agent explains the program she has been enrolled in very thoroughly and she agrees with the value proposition and the pricing," he said.
Farag has a different memory. She felt she had no choice but to accept the contract after her son signed on her behalf.
Edwin Paley asked me for help after his 78-year-old mother signed for both gas and electricity last April with Ontario Energy Savings Corp.
"Unfortunately, she has no recollection of signing," he said about the contracts, which he found only after the deadline for cancellation had passed.
The company said she couldn't get out. The Ontario Energy Board, which regulates energy retailers, agreed - but suggested he appeal, citing his mother's age and providing proof by
sending her birth certificate.
"I tried the appeal, minus the birth certificate. No success. With identity theft such a common occurrence, I wasn't going to send a birth certificate to an organization I did not trust."
Ontario Energy Savings cancelled the two contracts without penalty once I got involved.
"We certainly don't promise savings," says Gord Potter, vice-president of regulatory affairs for Ontario Energy Savings. "But you see the potential for savings in our brochures."
Signing a long-term contract means you pay a higher rate at the beginning, hoping to be protected from rising prices in the later years.
But there's no protection if the energy market tumbles. Some people signed natural gas contracts last year at 50 cents a cubic metre. The current utility rate is 30 cents. With electricity, many people agreed to pay almost 10 cents a kilowatt-hour last year for all the power they consume. Utilities charge a two-tier rate that rewards conservation - currently, 5.5
cents for the first 1,000 kilowatt-hours used and 6.4 cents for the rest.
Staying with your utility means uncertainty. Rates are adjusted every three months for gas and every six months for electricity. And if utilities run a deficit by charging too little, they're allowed to put through retroactive increases.
But at least you won't lock into an inflated price when the market hits a peak - and lose the ability to follow the price down again.
News tip: The Ontario Energy Board provides comparisons of energy retailers at its website (www.oeb.gov.on.ca, What's New). You'll find complaint statistics broken down by company and category for the last three months of 2006. If you have an interesting consumer problem you would like investigated, please send details by email to onyourside @
thestar.ca.
Tuesday, June 19, 2007
Treated unfairly? Get an explanation
Toronto Star - March 10, 2007 - By Ellen Roseman Toronto Star
Most people want help when they contact On Your Side. But some want an explanation of what went wrong and a promise it won't happen again.
Mark Fujita is in the latter camp. When a door-to-door seller of energy contracts tried to sign up his 15-year-old daughter, he hit the roof.
"In January, while we were out, a saleswoman from Superior Energy arrived, implied she was from a government agency and coerced my daughter into signing forms," he said.
"She also asked my daughter to go find our gas bills. Luckily, she had no idea where to find them."
Fujita said no when asked to reaffirm the contract. But he didn't get a sense the company would try to stop its agents from putting pressure on minors. I sent his complaint to Greg McCamus, president of Superior Energy Management in Mississauga, who promised to investigate.
"I assure you this is not the way we do business. We will take swift action with the agent involved," he said.
This week, McCamus called Fujita to say he had asked the firm doing Superior's door-to-door sales to terminate the agent in question.
Michael Pogor wanted help with the HP television set he bought last May for about $3,000. "A notice appeared on the screen saying a lamp needed to be replaced. The warranty on the bulb was only 90 days," he told me.
The cost of a replacement seemed steep, so Pogor asked me to find an explanation. "I found one for $349 (U.S.) at HP's U.S. website, but was told I couldn't buy it online," he said. "The Canadian price was $612. That's an exchange rate of more than 75 per cent."
HP Canada spokeswoman Angela Rea said the TV was never sold online in Canada, so the bulbs were not sold online either.
"We are now making the bulbs available at our Canadian website, so getting hold of one shouldn't be a problem moving forward," Rea said.
Pogor was happy to buy his replacement lamp at the U.S. price of $349, adjusted for the current exchange rate.
Laura McNutt wanted help with the ceramic cooking range she bought from Sears last year. She was getting explanations, but none that involved taking responsibility for what she felt was a manufacturer's defect.
"I witnessed the thermal failure," she told me.
"The front right burner was on, heating vegetables in a stainless steel pot, when there was a spontaneous crack seen and heard."
McNutt felt that a new ceramic top for the Kenmore stove should be covered under warranty.
But everyone she spoke to said the crack wasn't typical.
"I am shocked at the lack of accountability Sears accepts," she complained. "I was shuffled from one telephone voice to another, each with a slightly different perspective and opinion, each requiring me to repeat the same details over and over again."
She started an email campaign, writing to me and to about 20 department store officials. Her print offensive did the trick.
"Sears was very responsive once I clearly explained the issue," McNutt said. "The appliance was fixed within 48 hours and they diligently followed up. I was pleasantly surprised."
Peter Ebner wanted an explanation from Direct Energy about a rental water heater that had to be replaced because of its age.
He was told there would be no cost for a new unit. So, why did he end up with a bill of $347.75 for installation?
Joshua Orzech, a spokesman for Direct Energy (which acquired the rental water heater business from Enbridge Gas Distribution Inc.), explained what happened in this case.
"During a service call, our technician advised Mr. Ebner that his water heater had to be replaced as it did not comply with current safety codes," he said.
There's no charge for a new hot water heater, but there are fees for any venting work required. This is stated in Direct Energy's rental agreement.
Ebner agreed that he had been notified in advance of the $350 charge for venting work. But he was given conflicting information when he called the company.
"I was reassured that since it's a rental, there would be no charge for installation. Relying on that assurance, I proceeded."
Luckily, he also demanded a breakdown of the work done. That netted him a partial refund. Direct Energy's standard rate to install venting is $200, Orzech said. The technician didn't list what he did on the invoice.
"We have offered Mr. Ebner a credit of $118, plus GST, since we cannot provide him with a complete description of the work completed."
If you can't understand whether charges are justified - or why salespeople misbehave or how warranties fail to cover the parts you need - always ask for an explanation. You have the
right to know.
If you have an interesting consumer problem you would like investigated, please send details by email to onyourside@thestar.ca. We will get in touch with you only if we handle your complaint. You must agree to have your name used in the paper.
Monday, June 18, 2007
Locking in Gas Prices Can Be a Tough Call
November 10, 1999 - Toronto Star - By Ellen Roseman Toronto Star
THE MARKET "is going up and I want to protect myself from future increases. Should I lock in for three to five years?"
I used to get this question all the time about mortgages. Interest rates have been volatile, so cost-conscious homeowners follow market trends and make educated guesses about whether to go short or long. These days, interest rates are tame but natural gas prices are wild.
I'm starting to hear from homeowners who want to know whether to go short or long on their gas bills.
The question is especially confusing now that natural gas is deregulated. You can choose among many suppliers, including unregulated affiliates of the gas utilities.
Independent marketers have been supplying gas to Ontario homeowners since 1997. Many offer fixed prices for one, three or five years. But 50 per cent of consumers don't even realize they have a choice of gas suppliers, according to a survey done in June by the Angus Reid Group for the Public Interest Advocacy Centre in Ottawa. And 75 per cent don't think they have enough information to make a decision on switching suppliers.
If you haven't switched yet, don't despair. You can get up-to-date gas prices at www.energyshop.com, which offers a wealth of useful information. Energyshop.com lists both regulated and unregulated rates.
For Enbridge Consumers Gas, the rate is 12.196 cents per cubic metre, up from 10.471 cents in the year ended Oct. 1, 1999. For Union Energy, the rate ranges from 11.228 cents to 11.912 cents.
One thing to know when comparing costs: The gas supply charge is only about one-third of your bill. That's what goes to the gas marketer.
The other two-thirds, the distribution charge, is fixed and regulated by the Ontario Energy Board.
How do rising prices affect a typical homeowner? Here's an example from Janet Holder, vice president of market development and supply for Enbridge Consumers Gas.
The average Ontario household spends $1,100 a year on gas heating. One-third of that, about $360, is the commodity cost. (If you don't know how much you spend on gas, check with your supplier.)
So when you hear a promotional message promising a 10 per cent saving on gas, remember it refers to 10 per cent of the one-third of your bill controlled by the gas marketer.
For a typical homeowner, saving 10 per cent on gas means just $36 a year, or $3 a month. Is that worth enough to you to switch suppliers?
"I'm hesitant to use the mortgage analogy when talking about heating," Holder says.
If mortgage rates go up 1 percentage point, that has a major impact on people's budgets. But rising gas prices are less significant when it comes to the cost of living. The average household uses 3,000 to 3,300 cubic metres of gas a year. If the price goes up 1 cent a cubic metre, that's an annual increase of $30 to $33.
Deregulated gas prices tend to be higher, since the companies are letting you lock in a long-term fixed price. Sunoco Inc. is charging 13.9 cents for three years, while Enbridge Home Services is charging 14.9 cents. For five years, you will pay 16.5 cents at Apollo Gas; 16.6 to 16.99 cents(depending on where you live) at Direct Energy; and 20 cents at Ontario Energy Savings Corp.
Energyshop.com will contact up to three suppliers on your behalf and get back to you right away by e-mail with an individual price quote. It also lets you sign up online.
Ian MacLellan, vice-president of marketing for M3 & W Inc., which runs the six-month-old Energyshop.com site, says it's tricky to compare regulated and unregulated gas rates. "In a rising market, regulated rates always look lower," he says. That's because if rates go up more than the utilities predict, they apply a retroactive increase. On the other hand, if rates fall more than they expect, they put through a refund of the difference.
Has MacLellan locked in a long-term gas price? "I did one year ago and I got a good deal," he says.
"Would I lock in now? Not for five years - that's too long. But some of the fixed rates for one to three years are not bad."
If you can't use the Internet, Energyshop.com provides the same excellent comparison of gas prices by telephone. Call toll-free to 1-877-331-1141 to have the information read to you, or give your address to get a copy in the mail. Or call 905-737-2683 to get a fax-back version.
Ellen Roseman's column appears Monday, Wednesday and Friday. You can reach her by writing Your Business c/o The Toronto Star, 1 Yonge St. Toronto M5E 1E6, or by phone at (416) 945-8687 or by fax at (416) 865-3630 or at erosema @ thestar.ca by e-mail.
Letter to the Editor Published in the Langley Free Press
I would like to thank the Langley Free Press for publishing my letter and helping educating citizens of Langley and British Columbia on gas marketers.
To read the letter, visit: http://www.kimrichter.com/Blog/2007/06/letter-to-editor-june-11-2007-from-rick.html
Rick Kaselj
Wednesday, June 13, 2007
Who’s that knocking at your door?
April 15 2007 by Ellen Roseman
Link - http://www.ellenroseman.com/?p=20
If they tell you about great savings on natural gas or electricity and they want to look at your utility bills, shut the door….quickly.
I’m not against locking in a long-term price for energy (and I did it myself once), but I don’t trust door-to-door sellers of energy contracts. Too often, according to what I hear, they misrepresent who they are and what you get if you sign. You don’t have time to do any background research and make up your mind on whether it’s a good time to buy.
Before you agree to anything, check the Ontario Energy Board reports on consumer complaints relating to gas and electricity retailers. You can check each company and see what kind of complaints it has received.
Also, you have to compare the prices you’re quoted with your local utility’s price. If you go to Energyshop you can see whether you would have been better off locking in or staying with your utility. Because of the falling price of gas in the past 18 months, Enbridge Gas customers who didn’t lock in have been ahead of those who did.
What if I Pay the Cancellation Fee will My Contract Be Cancelled?
Maybe!
Henry Dobiech signed an electricity contract with Direct Energy. He agreed to pay a $143.36 penalty for an early exit and sent a cheque in November. But his contract was not cancelled. Read more - http://www.thestar.com/article/223409
ARTICLE - Direct Energy chided for 'sloppiness'
DATE - Jun 09, 2007 04:30 AM
PAPER - Toronto Star
WRITER - Ellen Roseman
LINK - http://www.thestar.com/article/223409
Direct Energy chided for 'sloppiness'
Jun 09, 2007 - Toronto Star - by Ellen Roseman
Henry Dobiech signed an electricity contract with Direct Energy.
He tried to cancel the deal but ran into one roadblock after another.
I've rarely seen such a case of sloppiness and missed connections.
Dobiech wanted to get out of his fixed-price contract, which had a higher rate than he'd pay with his hydro utility.
He agreed to pay a $143.36 penalty for an early exit and sent a cheque in November.
But his contract was not cancelled.
In late December, Direct Energy called to say his cheque was lost. Could he send another one?
He sent a new cheque, which was cashed in January.
A month later, while he was on holiday out of the country, he checked his bank account and found an overdraft.
His original cheque had turned up after all and had been cashed by Direct Energy.
Now came the fun part, trying to get back his money.
Despite having a reference number for his complaint and the name of someone who could help, Dobiech got nowhere.
"I called this person on March 5, 7, 8, 14, 16, 23 and got his voice mail," Dobiech says.
"I asked him to call me each time. No response."
In April, a new person started looking into the complaint. She promised a response by April 27.
"Still no response," he wrote to me on April 30. "I'm on a fixed-income pension and could certainly use this money.
"It has been two months since I brought this to their attention and still they refuse to reimburse me, as well as not returning phone calls."
On the same day I sent his email, Dobiech got a call from a Direct Energy executive. The refund cheque arrived on May 11, delivered by courier.
"Had you not got involved...they would still be stonewalling me," Dobiech said.
Gregory Diradour, another senior, asked for help in getting out of his gas contract. He signed with Direct Energy for five years in September 2001 and thought he was finished last fall.
But this January, shocked by high gas charges, he checked his bill and saw he was still with Direct Energy.
Customers receive a renewal package a few months before contracts expire, said company spokesperson Joshua Orzech. If people don't respond, their contracts are renewed automatically for another year.
As a goodwill gesture, Direct Energy released Diradour from his one-year contract without penalty and returned him to his gas utility on April 1.
Direct Energy, like other gas marketers, will roll over an existing contract for a year if the company doesn't hear from you.
"It would not be appropriate for us to decide on our own that a customer who previously came to us for a stable rate would want to return to utility rates that can fluctuate unpredictably," Orzech said.
Utility rates, however, have been coming down. Enbridge Gas Distribution's adjusted rate is now 29.86 cents a cubic metre and Union Gas is charging 25.86 cents.
Meanwhile, Direct Energy charges 43.9 cents a cubic metre for a one-year plan and 39.32 to 40.9 cents for a five-year plan. That's a stiff premium for peace of mind.
The Ontario Energy Board brought in new rules on June 1, making it easier for customers to switch from one gas marketer to another before their contracts have expired. I'll tell you more about this next Saturday.
Ellen Roseman's column appears Monday, Wednesday, Friday and Sunday. You can reach her by writing Your Business c/o TheT oronto Star, 1 Yonge St. Toronto M5E 1E6, by phone at (416)945-8687, by fax at (416) 865-3630 or at erosema @ thestar.ca bye-mail.
Municipal Action - Howie Vickberg
Rick Kaselj
DIRECT ENERGY MARKETING Ltd - Gas marketer's customer wins his release
April 28, 2000 - Toronto Star - by Ellen Roseman - IT TOOK TWO years, but Dieter Potschka has broken his five-year contract with Direct Energy Marketing Ltd. And even if he pays more for home heating, he's thrilled toget out of a deal his daughter signed on his behalf. Potschka's story sheds light on the door-to-door sales tactics used by some natural gas marketers. Direct Energy insisted Potschka had a valid contract and agreed to release him only when I called this week.
"We're not harmed by this, but we think he'll rue his decision," said Jeremy Slasor, the company's marketing director.
Potschka, a purchasing manager at a steel company, says he knows what a proper contract is and doesn't want to deal with a gas marketer he didn't freely choose.
In August, 1996, Potschka's daughter, then 22, was visiting his home in King City, an upscale neighbourhood north of Toronto. "She was persuaded to sign a contract and asked to give the person at the door a copy of my account number with Consumers Gas. This is confidential information," her father wrote to the Ontario Energy Board last month. Direct Energy agrees an adult daughter does not have the right to sign a five-year gas deal on her father's behalf.
The issue in dispute is whether Potschka should have cashed a $15 cheque sent to him in late 1997, as a rebate after his first year. Didn't he read the message on the back? It said: "By cashing this cheque, I acknowledge that I have read the attached and have elected to participate with Direct Energy Price Protection Program. My cost of natural gas will be 10.1 cents per cubic metre for a five-year period." Potschka says he didn't understand that cashing the cheque meant signing a contract agreeing to the terms of the letter. "Why wasn't a signature required on the letter?" he asks."That is what I would deem a contract." The misunderstanding might have been resolved if not forPotschka's tactical error.
Writing to the Ontario Energy Board, he accused Direct Energy of insults and abuse, harsh language that hurt his case. "I have no problem cancelling the contract," Slasor told me,"but if I let him off, it looks like I'm admitting to all that - and I'm not." Potschka also said he would have done as well if he'd stayed with Enbridge Consumers Gas.
While Direct Energy's unregulatedrate of 10.1 cents a cubic metre is lower than Enbridge's regulated 12.2 cents, extra charges bring Direct close to the same level. Some of these charges are temporary, Slasor replies. Meanwhile, Enbridge is asking the Ontario Energy Board for a retroactive rate increase because of higher than expected commodity prices. To show how much prices have gone up, Direct Energy now charges 18.5 cents for a five-year gas supply, as does Ontario Energy Savings Corp. Apollo Gas charges 16.9 cents and Sears Canada 15.5 cents. Some marketers don't even offer fixed prices for five years. Sunoco Inc. charges 15.4 cents for three years and Enbridge Home Services, the utility's unregulated affiliate, charges 14.9 cents for either one or two years. (You can get updated prices from www.energyshop.com, a useful Web site that should be your first stop if you're consideringc hanging gas suppliers.)
Direct Energy is now licensed to sell electricity as well. It was the first retailer to get the nod on April 1. Since then,the Ontario Energy Board has approved six more: GreengridElectric Ltd., Greenwin Property Management Inc., Northern Ontario Energy Inc., Pure Choice Electric Inc., Toronto Hydro Energy Services Inc. and Trans Canada Energy Ltd. When Direct Energy starts knocking on doors to sell electricity later this spring, sales reps will have two-way pagers that instigate quick callbacks to people who sign long-term deals. "We'll make sure the customer understands it and wants to do it. Any wrong answer and the deal is cancelled," Slasor promises.
Anne Powell, the energy board's director of licensing, thinks Direct Energy's callbacks will help customers such as Potschkaand reduce confusion. The board has a strict conduct code for energy retailers and sends complaints to an independent dispute resolution firm in Ottawa. "Marketers and retailers must pay for this service," says Powell. "Those causing problems will be paying quite a bit."
Ellen Roseman's column appears Monday, Wednesday, Friday and Sunday. You can reach her by writing Your Business c/o TheT oronto Star, 1 Yonge St. Toronto M5E 1E6, by phone at (416)945-8687, by fax at (416) 865-3630 or at erosema @ thestar.ca bye-mail.
Monday, June 11, 2007
Contact Your Municipal Politicians
Contact Your Municipal Politicians
Action that Municipal Politicians Can Take
(1) Each of the concillors have their website below. Contact each concillor to take action on Gas Marketers in the community have them create bylaws to protect residence of the Township from door to door marketing.
(2) All for profit door to door marketers need to have a Township of Langley business license.
(3) For profit door to door marketers can only talk with the owner of the resdence or primary renter of the residence.
List of Township of Langley Council
Website - http://www.tol.bc.ca/index.phpoption=com_content&task=view&id=247&Itemid=555
Howie Vickberg - CouncillorJordan Bateman Councillor
Website - http://www.jordanbateman.com/
Kim Richter - Councillor
Website - http://kimrichter.com/
Bob Long - Councillor
Website - http://www.boblong.ca/index.html
E-mail - blong@tol.bc.ca
Steve Ferguson - Councillor
Charlie Fox - Councillor
Mel Kositsky - Councillor
Grant Ward - Councillor
Kurt Alberts - Mayor
What Are Peoples Experiences with Gas Marketers
Customers unhappy about new gas suppliers
Vancouver Sun - Brian Morton - Friday, May 04, 2007 - A major makeover of B.C.'s residential gas market has been in effect for only three days, but already there have been several complaints from customers about fraudulent or aggressive business practices by new gas suppliers.
http://www.nowpublic.com/customers_unhappy_about_new_gas_suppliers
Superior Energy To Look Into Complaints
Opinion 250 - Tuesday, May 29, 2007 - President of Superior Energy in Mississauga, Greg McCamus, says he will start an investigation into complaints about one of the sales people doing door to door sales in Prince George.
http://www.opinion250.com/blog/view/6004/1/superior+energy+to+look+into+complaints
Natural gas marketers make pitch to residents
Prince George Citizen – May 31, 2007 - As of May 1, Terasen Gas customers in B.C. have had the option of switching to another gas supplier if they so desire.
http://www.princegeorgecitizen.com/index.php?option=com_content&task=view&id=82861&Itemid=26
The Ins and Outs of Contracts
Toronto Star Article - Ellen Roseman - Feb 17, 2007 - Today, I'll look at what happens when you sign a gas or electricity contract and you want to get out.
http://www.thestar.com/Business/article/182737
Treated unfairly? Get an Explanation
Toronto Star Article - Ellen Roseman - Mar 10, 2007 - Most people want help when they contact On Your Side. But some want an explanation of what went wrong and a promise it won't happen again. Mark Fujita is in the latter camp. When a door-to-door seller of energy contracts tried to sign up his 15-year-old daughter, he hit the roof.
http://www.thestar.com/article/190287
Complaints Againt Gas Marketers in Ontario
Except as indicated in the chart; the statistics are presented for each retailer or marketer based on the number of issues raised per 1000 new enrollments and renewals. Information on enrollments and renewals used for this purpose was provided by the retailers and marketers and has not been subject to independent review or audit by the OEB.
http://www.oeb.gov.on.ca/html/en/consumers/infocentre/consumer_enquiries_reports.htm
The Superior Energy Scam
Rick Kaselj
The Superior Energy Scam
Do not sign up for any services offered by Superior Energy or any other gas marketer that have popped up because of the commodity unbundling of services relating to natural gas.
A representative from Superior Energy came to my home on May 15, 2007 and scammed me for $579. A representative from Superior Energy knocked on my door and informed me that Terasen was not going to be delivering natural gas to my home and that Superior Energy would be providing that service. He let me know that in order for me to be transferred over to Superior Energy and have my natural gas service continued, I would have to provide him with my Terasen gas statement. I was resistant at first but he convinced me to provide it. He filled out a form and got me to sign it. He said a letter from Terasen would come in the mail informing me that Superior Energy would be delivering natural gas to my home.
I received a letter dated May 16, 2007 on May 28, 2007 from Terasen gas. After reviewing the letter, and realizing that I was not interested in having Superior Energy provide me with gas, I explored my cancellation options. I noticed that that I had 10 days with which to cancel however; I received the letter past my 10 day cooling off period. According to Superior Energy weekends and holidays are calculated in the 10 day cooling off period. I contacted Superior Energy and was informed that I could only cancel my contract if I paid a $310 service charge. In addition the rate I was originally quoted on my contract was $9.14 per GJ and the letter stated the rate was $9.74. When outlining this mistake to Superior Energy they said I was wrong and refused to make the change.
I have tried to communicate diplomatically with Superior Energy but they have refused to be understanding. What I have decided is to inform my friends, family, city, politicians and media of the tactics of Superior Energy.
Do not make the same mistake as me. Do not sign up for the Superior Energy Scam!
What You Need to Know about the Superior Energy Scam:
- If you sign up with them, you are locked into a contract for 5 years.
- Your gas fee will go from $7.663 per GJ to $9.74 per GJ. This is 27% increase or $116 a year.
- Signing up will cost you almost $579 (over 5 years) compared to today’s rate from Terasen
- Experts expect natural gas to stay at between $7 - $8 per GJ
- You have 10 calendar days to cancel the contract, not business days. Holidays and weekends are included in the count.
Educate Yourself:
- Visit Terasen Gas website ( www.bcgas.com ) for more information.
- Visit British Columbia Utilities Commission which regulates British Columbia's natural gas and electricity utilities ( www.bcuc.com )
- Read the Code of Conduct for Gas Marketers at http://www.bcuc.com/Documents/GasMarketers/CodeofConduct-04-24-07.pdf
- How to file a Complaint - http://www.bcuc.com/Complaint.aspx
- Superior Energy - http://www.superiorenergy.ca/
If Superior Energy does end up scamming you, feel free to call Rick at (604) 530-0103 or e-mail at rkaselj@hotmail.com and he can share his experience and let you know what actions he has taken.
Rick Kaselj
Victim of the Superior Energy Scam
