Ontario Energy Board accepts Assurance of Voluntary Compliance from Milton Hydro Distribution Inc.

The Ontario Energy Board (OEB) has accepted an Assurance of Voluntary Compliance (AVC) from licensed electricity distributor Milton Hydro Distribution Inc. (Milton Hydro), which serves approximately 43,000 customers in the Town of Milton.

Under the terms of this AVC, Milton Hydro acknowledges that a billing system error that persisted for several years resulted in some customers being overcharged. Specifically, a portion of bills issued by Milton Hydro reflected an incorrect proration of OEB-approved fixed monthly charges. Milton Hydro implemented system changes to correct this issue effective November 3, 2023.

Under the terms of this AVC, Milton Hydro will contribute $19,165.59 to the Low-income Energy Assistance Program (LEAP) to help customers in need in its service area. The amount is equivalent to four years of overcharges. The OEB accepted this approach in this case given that a four-year credit would be small (about $0.41 per residential customer) and that many of those affected by the billing system error are no longer customers of Milton Hydro. Milton Hydro will notify current customers of this AVC and the contribution to LEAP in a form approved by the OEB.

Milton Hydro will also pay an administrative monetary penalty of $10,000.

Milton Hydro reported the issue to the OEB in September 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 Milton 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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