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 Newmarket-Tay Power Distribution Ltd. (NT Power), following an inspection into the company’s disconnection practices which were found to be non-compliant with OEB rules. NT Power is a licensed electricity distributor serving approximately 50,000 customers in the Towns of Newmarket and Midland and in Tay Township.

The OEB inspection found that, between April and August 2022, 870 customers were issued disconnection notices that failed to provide the minimum required 14-day notice of disconnection required by the OEB’s Distribution System Code (DSC). Ten customers had their electricity service disconnected and six were also charged reconnection fees. Customers have since been reconnected and all reconnection fees have been credited back to affected customers.

In the AVC, NT Power acknowledges that this is the second time in three years it has failed to comply with its disconnection-related obligations under the DSC. NT Power has assured the OEB that steps have been taken to ensure staff involved in the disconnection process properly implement regulatory requirements through on-going training and management oversight to support compliance. NT Power has further assured the OEB that it is aware of and takes seriously its obligations under the DSC, to provide consumers with the appropriate notice of any proposed disconnection of electricity service.  

Under the terms of this AVC, NT Power will pay an administrative monetary penalty of $75,000 and make an additional payment of $25,000 to the social agency that runs the Low-income Energy Assistance Program (LEAP) in its service territory. NT Power will also send a letter to the 10 customers whose electricity service was disconnected, informing them of its non-compliance and of the additional funding being provided to the LEAP social agency. NT Power will also provide each of these customers with a bill credit of $100.

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.

“OEB rules require utilities to provide accurate information in their disconnection notices so that customers have time to take steps to avoid disconnection. As a result of the actions we have taken and NT Power’s assurance that it is aware of its obligations and has taken steps to improve its processes, consumers will be better protected.”

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

Additional Information and Resources

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.


Contact Us

Media Inquiries
Phone: 416-544-5171
Email: oebmedia@oeb.ca