Ontario Energy Board accepts Assurance of Voluntary Compliance from Kingston Hydro Corporation

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

Under the terms of this AVC, Kingston Hydro acknowledges that a billing system error resulted in a subset of customers across most rate classes being overcharged for a number of years. Kingston Hydro implemented system changes to correct this issue effective June 12, 2022.

Under the terms of this AVC, Kingston Hydro will contribute $21,878 to the Low-income Energy Assistance Program (LEAP) to help customers in need in its service territory rather than providing a credit to customers. The amount is equivalent to the total amount of overcharges over four years. The OEB accepted this approach in this case given that a four-year credit would be small and that many of those affected by the billing system issue (such as university or college students) are no longer customers of Kingston Hydro. Kingston Hydro will notify current customers of this AVC and of the contribution to LEAP in a form approved by the OEB.

Kingston Hydro will also pay an administrative monetary penalty of $2,500.

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. Kingston Hydro reviewed its billing system and found the billing system error only affected a small subset of customer bills.

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 Kingston Hydro 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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