Ontario Energy Board accepts Assurance of Voluntary Compliance from Alectra Utilities Corporation

The Ontario Energy Board (OEB) has accepted an Assurance of Voluntary Compliance (AVC) from licensed electricity distributor Alectra Utilities Corporation (Alectra).

Under the terms of this AVC, Alectra acknowledges that a billing system error resulted in customers in all rate classes in its Guelph Rate Zone being overcharged for a number of years.  Alectra will provide a credit to current customers in the Guelph Rate Zone in an amount equivalent to four years of overcharges, totalling approximately $1.24 million. This will be paid through a one-time credit that will appear on those customers’ bills within 90 days of the acceptance of this AVC. At that time, Alectra will also provide those customers with an explanation in a form approved by the OEB. Alectra implemented system changes to correct this issue for bills covering usage starting August 1, 2022.

In its other four rate zones, Alectra uses a different billing system. Alectra determined that only a small proportion of bills in those rate zones were affected by the same billing error. Alectra corrected the issue in these rate zones for bills covering usage starting October 1, 2022.

In recognition of the overbilling in all of its rate zones, Alectra will also pay an administrative monetary penalty of $55,000.

Earlier this year, after a billing issue relating to the proration of certain charges came to the OEB’s attention, the OEB asked all electricity distributors to review their billing systems and advise the OEB if customers were being overcharged as a result of the same issue. Alectra reviewed its billing system and reported that it had been incorrectly prorating some fixed monthly charges and as a result overcharged some customers.

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.

“All licensed electricity distributors must be rigorous in applying OEB-approved rates and calculating accurate billing amounts for their customers. Billing accuracy is foundational to customer trust and the OEB is assured that Alectra has fixed this billing issue.”

– Brian Hewson, Vice-President, Consumer Protection & Industry Performance

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About the Ontario Energy Board

The OEB is the independent regulator of Ontario’s electricity and natural gas sectors. It protects the interests of consumers 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.


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