Under the terms of the AVC, Hudson Energy will pay an administrative monetary penalty of $12,000. The AVC also confirms that Hudson Energy provided a refund to each of the condominium corporations.
An AVC is a binding commitment by a regulated entity to take measures to rectify or prevent non-compliance. Failure to abide by the terms of an AVC can lead to enforcement action being taken by the OEB.
The inspection determined that the contracts in question had been entered into by salespersons acting on Hudson Energy’s behalf, without valid customer authorization from the condominium corporations. As a result, Hudson Energy also did not have authorization to start supplying electricity to the condominium corporations. Hudson Energy was therefore in non-compliance with certain provisions of the OEB’s Electricity Retailer Code of Conduct and Retail Settlement Code.
As each of the condominium corporations brought the matter to its attention in late 2019 and early 2020, Hudson Energy promptly cancelled the contracts in question and terminated its relationship with the two salespersons involved.
Through the AVC, Hudson Energy acknowledges that it has ultimate responsibility over the actions of its salespersons, and that it did not have valid customer authorization to provide electricity supply to the condominium corporations. Hudson Energy also assures the OEB that it has amended a number of its sales processes to further mitigate against the potential for its salespersons to engage in unfair business practices.
“Through the AVC, Hudson Energy has assured the OEB that it has taken all appropriate measures to ensure that its processes for signing up customers and for dealing with unauthorized contracts comply with all of its legal and regulatory obligations. Consumers who have concerns about energy contracts are encouraged to contact us.”
– Brian Hewson, Vice-President, Consumer Protection & Industry Performance
Additional Information and Resources
- Read the Assurance of Voluntary Compliance – Hudson Energy Canada Corp. (EB-2021-0102)
- Learn about Energy Contracts
- See the OEB’s Tip Sheet with important information about energy contracts
- Learn about the OEB’s Compliance and Enforcement Process
- Understand the OEB’s Consumer Complaint Process
About the Ontario Energy Board
The OEB is the independent regulator of Ontario’s electricity and natural gas sectors. It protects the interests of individuals and supports the collective advancement of the people of Ontario. Its goal is to deliver public value through prudent regulation and independent adjudicative decision-making which contributes to Ontario’s economic, social and environmental development.