Ontario Energy Board accepts Assurance of Voluntary Compliance from Newmarket-Tay Power Distribution Ltd.

The Ontario Energy Board (OEB) has accepted an Assurance of Voluntary Compliance (AVC) from licensed electricity distributor Newmarket-Tay Power Distribution Ltd. (NT Power).

Under the terms of this AVC, NT Power acknowledges that a billing system error resulted in some customers being charged more than certain OEB-approved charges for several years. The issue affected customers in all rate classes of the Midland Rate Zone, the area served by Midland Power Utility Corporation until it was acquired by NT Power in 2018. NT Power customers outside the Midland Rate Zone were not affected. The issue was fixed when NT Power integrated the Midland billing system with its own on February 28, 2021.

NT POWER will pay an administrative monetary penalty of $2,250 and will provide a credit to its current customers in the Midland Rate Zone.

More specifically, under the terms of this AVC, NT Power will provide a total credit of $95,460 to current Midland Rate Zone customers, which is equivalent to overcharges going back four years from when the issue was corrected. This will be paid through a one-time credit that will appear on customers bills within 90 days of the acceptance of this AVC. At that time, NT Power will also provide customers with an explanation in a form approved by the OEB.

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. NT Power reviewed its billing system and reported that it had been incorrectly prorating its fixed monthly charges and as a result overcharged its 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 NT Power 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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