Knock, knock. Who’s there?

“I’m your energy supplier and I’m here to lower your price,” says a friendly person at your door, claiming to have a great deal you can’t afford to miss.

For many years, Ontario has allowed independent retailers to visit customers at their homes in order to sell them a long-term energy contract at a fixed price.

These door knockers have no connection to your current energy supplier. They cannot guarantee you will pay less than the rate charged by your local utility. And they cannot promise an easy exit from the contract if you overpay and decide to cancel early.

In 2011, the Ontario government brought in an extensive new law – The Energy Consumer Protection Act – and backed it up with a strong enforcement campaign.

Has it worked? Are consumers further ahead as a result of new rules to make retailers identify themselves and explain what they are selling?

The law has helped improve consumer protection in the retail energy markets, the Ontario Energy Board said in a recent report called Consumers Come First.

“The ECPA “is among the most extensive legislation of its kind in North America,” the report said. “There is general agreement that it is headed in the right direction. However, our review also indicates that problems remain.”

The remaining problems include aggressive sales tactics, low awareness of the energy sector and unclear bills that deter price comparisons. They are serious enough that the board recommends 14 new measures to further enhance consumer protection.

First recommendation: Ban door-to-door sales for residential consumers.

Consumers don’t usually go looking for an energy contract. Half of all retail energy contracts in 2014 came about through approaching people at their homes.

When approached in this way, consumers are often unhappy with the experience. One third of those who enter into contracts do not even realize they have a contract – and 40 per cent of unaware consumers have a household income of less than $40,000.

Since most Ontario consumers (90 per cent) buy energy from their utility, the Ontario Energy Board’s total number of complaints has gone down. But complaints about agents’ conduct at the door continued to go up as a percentage – from 23 per cent of all complaints about energy retailers in 2010 to 44 per cent in 2013 and 37 per cent in 2014.

“Banning the signing of contracts at the door is probably the best thing we can do to protect consumers,” says Martine Band, associate general counsel of the Ontario Energy Board. “This allows consumers to make decisions in a meaningful way with lots of information at their disposal.”

Another key recommendation: Post prices and comparisons on an OEB-supervised website.

This means setting up a one-stop portal where consumers can find all the information they need to compare prices.

Another key recommendation: Address the needs of low-income consumers.

Not everyone has easy access to computers or the ability to search online. Low-income people need information in different languages, using advertising in print, radio, billboards or transit shelters.

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They also need a detailed explanation of how the retail energy markets work in Ontario. The concept of choice may be foreign to them.

Here’s what I think: Ontario needs to launch a meaningful campaign to improve the energy knowledge and cost comparison skills of all customers. And when it does so, the retailers’ market share may decline even further.

The report found that consumers who signed five-year fixed-rate contracts between May 2006 and November 2009 were paying 82 per cent more for electricity than they would have paid if they had stuck with their utility. It did not find a single electricity contract that had saved money for consumers.

Ellen Roseman writes about personal finance and consumer issues. You can reach her at eroseman@thestar.ca or www.ellenroseman.com

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