Under the terms of this AVC, E.L.K. acknowledges that a billing system error that persisted since November 2020 resulted in some customers being overcharged. Specifically, a portion of bills issued by E.L.K. reflected an incorrect proration of OEB-approved fixed monthly charges. E.L.K. implemented system changes to correct this issue effective November 1, 2023.
Under the terms of this AVC, E.L.K. will contribute $2,741.82 to the Low-income Energy Assistance Program (LEAP) to help customers in need in its service area. The amount is equivalent to three years of overcharges. The OEB accepted this approach in this case given that a three-year credit would be small (about $0.30 per residential customer) and that many of those affected by the billing system error are no longer customers of E.L.K. E.L.K. will notify current customers about this AVC and its contribution to LEAP in a form approved by the OEB.
E.L.K. will also pay an administrative monetary penalty of $10,000.
E.L.K. reported the issue to the OEB in July 2023 after seeing that other distributors had provided AVCs to the OEB in respect of a similar proration error.
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 E.L.K. has fixed this billing issue.”
– Brian Hewson, Vice-President, Consumer Protection & Industry Performance
Additional Information and Resources
- Read the Assurance of Voluntary Compliance - EB-2023-0284
- Learn about the OEB’s Compliance and Enforcement 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 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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