Security Deposit Policy
The Deposit Policy conforms to the Ontario Energy Board Distribution System Code and Retail Settlement Code and is included in the Conditions of Service for PUC Distribution Inc.
PUC requires security deposits as a precaution to protect PUC and its Customers against potential losses from non-payment of accounts. Security deposits will be required for accounts which are billed under Standard Supply Service (SSS), Split Billing or Distributor Consolidated Billing. Service may be refused or discontinued if the required deposit is not paid.
The requirement to provide a deposit may be waived for permanent supply of electrical energy if certain conditions are met. Customers that have been exempted from paying a deposit and are deemed to have an unsatisfactory payment record or have become a credit risk may be required to provide a deposit.
Good Payment History
The relevant time period that makes up the good payment history is 1 year for residential customers, 3 years for general services customers with demand less than 50 kW and 7 years for all other rate classes. The relevant time period must be the most recent period of time and some of the time period must have occurred in the previous 24 months.
A customer is deemed to have a good payment history unless during the relevant time period the following or more than one of the following singular criteria has occurred;
- The customer has received more than one disconnection notice,
- More than one cheque has been returned for insufficient funds,
- More than one pre-authorized payment has been returned for insufficient funds,
- A disconnect/collect trip has occurred, or
- The utility has to apply the security deposit to cover the arrears.
Deposit Waived
The deposit requirement for Customers shall be waived if the Customer:
- Has a good payment history as set out in the section above or,
- Provides a letter from another distributor or gas distributor in Canada confirming a good payment history,
- Provides a satisfactory credit check at the customers expense,
- An eligible low-income customer has requested a waiver,
- Enrollment in the utilities equal billing and/or pre-authorized payment plan.
Amount of Deposit
The amount of the deposit will be based on the service address established usage history. Where there is no history, the amount will be based on the service size or typical usage pattern for comparable dwelling types as set out in Appendix D of PUC Distribution Inc. Conditions of Service.
Where a customer is billed monthly, the maximum amount of a security deposit shall be 2.5 times the estimated bill based on the customer's average monthly load during the most recent 12 consecutive months within the past 2 years. Where relevant usage information is not available for the customer for 12 consecutive months within the past two years the customer's average monthly load shall be based on a reasonable estimate made by PUC Distribution. PUC will determine the amount of the security deposit which will not exceed the maximum allowable according to the applicable Ontario Energy Board codes.
Deposits Refunded
For Residential Service Customers, deposits, plus interest, will be refunded or credited to the account either when the account is finalized or after 1 calendar year, provided the Customer has had a good payment history.
For General Service Customers, deposits, plus interest, will be refunded or credited to the account, either when the account is finalized, or after 3 years for customers with demand less than 50 kW and 7 years in any other rate class, provided the customer has had a good payment history. For customers with a demand greater than 5000 kW who would be exempt from paying a deposit, PUC is only required to return 50% of the security deposit.
Security deposits will be reviewed each calendar year to determine whether the deposit is to be reduced or returned as the customer is in a position that would exempt them from paying a deposit based on a good payment history.
A customer may, no earlier than 12 months after the payment of a security deposit or the making of a prior demand for a review, demand in writing that PUC Services Inc. undertake a review to determine whether the entire amount of the security deposit, or portion of the security deposit, is to be returned to the customer, as the customer is now in a position that they would be exempt from paying a security deposit.
Deposits shall be returned within 6 weeks of the closure of an account subject to the Distributor's right to use the security deposit to offset amounts owing by the customer to the Distributor in regards to their final bill.
Where a customer changes from SSS to a competitive retailer that uses retailer-consolidated billing or from distributor consolidated billing to split billing or retailer consolidated billing the security deposit shall be applied to the final bill prior to the change in service. Where a change is made from distributor-consolidated billing to split billing the distributor may retain a portion of the deposit that reflects the non-payment risk associated with the new billing option.
Form of Security Deposit
The security deposit can be paid in equal installments over a 6 month period. The customer may choose to pay the security deposit over a shorter period of time.
The security deposit for a non-residential customer shall be cash, cheque, an automatically renewing irrevocable letter of credit as defined in the Bank Act, 1991 (c.46), letter of guarantee, bond, or other security issued by a financial institution or insurer. The form of security must be acceptable to PUC.
In the event that the requirements for the security deposit are not met service may be terminated.