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News Releases
June 30, 2004
New Customer Accounts and Security Deposit Policy
POLICY #: 5
SUBJECT: CUSTOMER ACCOUNTS
DATE ADOPTED: September 12, 2002; Effective November 1, 2002
DATE AMENDED: June 17, 2004; Effective August 3, 2004
GENERAL
It is the policy of Brantford Power Inc. to establish guidelines for administration of customer accounts including billing, security deposits, credit and collections. The policy is intended to provide compassion and some flexibility in dealing with customers, while at the same time protecting the interests of Brantford Power and its customers.
MISCELLANEOUS CHARGES INCLUDING "NEW ACCOUNT SET UP FEE"
All accounts are subject to "Miscellaneous Charges" as approved by the Ontario Energy Board. New accounts are subject to a "New Account Set Up Fee."
CUSTOMER SECURITY DEPOSITS
All new customer accounts will be reviewed to determine whether a security billing deposit is required. Sufficient identification is also required when applying for service.
As customers switch to competitive retailers, and depending on the billing options, the amount of exposure for Brantford Power Inc. will vary and therefore the security deposit amount should be adjusted to reflect the new level of exposure.
The following policy shall apply for each billing option:
- RETAILER-CONSOLIDATED BILLING
Under this option, Brantford Power Inc. will not issue a bill to a customer. The retailer is responsible for issuing the bill to the customer and for customer non-payment risk. Brantford Power Inc. would not require a security deposit from the customer.
If we are in possession of a customer's deposit at the time of a switch to retailer-consolidated billing, the deposit shall be applied to the final bill and any excess returned to the customer.
- DISTRIBUTOR-CONSOLIDATED BILLING
Under this option, Brantford Power Inc. will issue a bill to the customer. Brantford Power Inc. is responsible for customer non-payment risk. We may impose an amount of security deposit depending upon our assessment of the customer's likely risk of non-payment as per the requirements below.
- SPLIT BILLING
Under this option, Brantford Power Inc. and a retailer shall each be responsible for customer non -payment risk for the bills that each issues to the customer. If a customer already has a deposit with Brantford Power Inc., we will retain a portion of the deposit amount that reflects the non-payment risk associated with the new billing option. Any excess deposit amount will be returned to the customer. For customers making new application for service, we may impose an amount of security deposit depending upon our assessment of the customer's likely risk of non-payment as per the attached requirements below.
- STANDARD SUPPLY SERVICE
Under this option, Brantford Power Inc. will continue to issue a bill to the customer. Brantford Power Inc. is responsible for customer non-payment risk. We may impose an amount of security deposit depending upon our assessment of the customer's likely risk of non-payment as per the requirements below.
SECURITY DEPOSIT REQUIREMENTS
Residential Customers - Owners and Tenants
Residential Customers will be required to pay a security deposit equal to an average billing at the address being serviced times the billing factor of 2.5, as estimated by Brantford Power. If the customer has a payment history which discloses more than one disconnection notice in a relevant 12 month period, the distributor may use that customer's highest actual or estimated monthly load for the most recent 12 consecutive months within the past 2 years. If the customer is enrolled in the Automatic Payment Plan, the required deposit will be equal to an average billing times a billing factor of 2.0.
A cash deposit will be waived subject to:
- Satisfactory payment record at Brantford Power Inc.
- Proof of satisfactory payment record with another distributor or gas distributor for 1 year will be accepted in lieu of a deposit. The time period that makes up the good payment history must be the most recent period of time and some of the time period must have occurred in the previous 24 months.
- A credit check satisfactory to the utility. The cost of such a credit check, as revised from time to time, shall be billed to the customer.
Satisfactory Payment Record for residential accounts is defined as follows:
The customer has had no more than one (1) NSF cheque or no more than one (1) pre-authorized payment returned NSF or no more than one (1) disconnect/collect trip has occurred or no more than one (1) disconnection notice has been received over the last twelve (12) months of continuous service. The time period that makes up the good payment history must be the most recent period of time and some of the time period must have occurred in the previous 24 months.
Security deposits may be adjusted, based on actual billing history. after twelve consecutive months.
If a satisfactory payment record cannot be maintained, a cash deposit will be required.
Cash deposits will be returned upon:
- The establishment of a one-year satisfactory payment record.
- A customer switching to retailer-consolidated billing.
- Termination of service.
Interest on cash deposits will accrue monthly. The interest paid will be the Prime Business Rate as published on the Bank of Canada Website less 2 percent updated quarterly.
Payment of the deposit may be made in equal installments over a 4 month period.
Failure to meet any condition in this policy will result in service disconnection until the condition is met to the satisfaction of Brantford Power Inc.
General Service Customers / Non-Residential Customers- Owners and Tenants
Customers will be required to pay a security deposit equal to an average billing at the address being serviced times the billing factor of 2.5, as estimated by Brantford Power. If the customer has a payment history which discloses more than one disconnection notice in a relevant 12 month period, the distributor may use that customer's highest actual or estimated monthly load for the most recent 12 consecutive months within the past 2 years. If the customer is enrolled in the Automatic Payment Plan, the required deposit will be equal to an average billing times a billing factor of 2.0.
Payments of the security deposit shall be cash, cheque, or an automatically renewing, irrevocable letter of credit from a bank.
For new services where no usage history is available, deposits will be required based on a per AMP/Phase as follows:
| Single Phase |
$ 5.00 per AMP |
| 3 Phase 120/208 Volt |
$10.00 per AMP |
| 3 Phase 347/600 Volt |
$15.00 per AMP |
Satisfactory Payment Record for general service/non-residential accounts is defined as follows:
The customer has had no more than one (1) NSF cheque or no more than one (1) pre-authorized payment returned NSF or no more than one (1) disconnect/collect trip has occurred or no more than one (1) disconnection notice has been received over the last twelve 5 years service, for non-residential customers in a < 50 kW demand rate class or 7 years in the case of a non-residential customer in any other rate class. The time period that makes up the good payment history must be the most recent period of time and some of the time period must have occurred in the previous 24 months.
A deposit will be waived or reduced subject to:
- Satisfactory payment record for general service/non-residential accounts at Brantford Power Inc
- Proof of satisfactory payment record for general service/non-residential accounts as defined above with another distributor or gas distributor.
- A credit check satisfactory to the utility. Where a non-residential customer in any rate class other than a <50 kW demand rate class has a credit rating from a recognized credit rating agency, the maximum amount of a security deposit which the distributor may require the non-residential customer to pay shall be reduced in accordance with the following table The cost of such a credit check, as revised from time to time, shall be billed to the customer. A credit check cannot be used by a customer in a > 5,000 KW demand rate class.
| Credit Rating |
Allowable Reduction In Security Deposit |
| AAA- and above or equivalent |
100% |
| AA-, AA, AA+ or equivalent |
95% |
| A-, From A, A+ to below AA or equivalent |
85% |
| BBB-,From BBB,BBB+ to below A or equivalent |
75% |
| Below BBB- or equivalent |
0% |
The form of payment of a security deposit for non-residential customers shall be, cash, cheque or an automatically renewing, irrevocable letter of credit from a bank as defined in the Bank Act, 1991, c.46.
Federal, Provincial or Municipal Government operations will be exempt from deposit requirements.
Deposits will be returned upon:
- A customer switching to retailer-consolidated billing.
- Five (5) years of good payment history for a non-residential customer in a <50 KW demand rate class or 7 years of good payment history of a non-residential customer in any other rate class. For customers that are > 5000 kW demand rate class, only 50% of the security deposit held by the distributor will be returned.
- Termination of services
Security deposits may be adjusted, based on actual billing history. after twelve consecutive months.
Interest on cash deposits will accrue monthly. The interest paid will be the Prime Business Rate as published on the Bank of Canada Website less 2 percent updated quarterly.
Payment of the deposit may be made in equal installments over a 4 month period.
Failure to meet any condition in this policy will result in service disconnection until the condition is met to the satisfaction of Brantford Power Inc.
METER READINGS
- Brantford Power will endeavor to read all revenue meters on a monthly basis.
- Brantford Power removes meters, or otherwise disconnects service, during all periods for which there is no customer service contract. If a contract with a new tenant is not established the account may be placed in the name of the property owner and the fixed "Monthly Customer Charge" approved by the Ontario Energy Board applied.
- Customers requiring seasonal or other temporary disconnection may be required to sign a letter accepting full responsibility and liability for the disconnection and agreeing to bear the cost of disconnection and reconnection.
- Where service is disconnected at the request of the owner, such as between tenants or seasonal disconnection, the fixed "Monthly Customer Charge" may be billed to the owner.
- Disconnected services may be subject to re-inspection by the Electrical Safety Authority prior to reconnection. Brantford Power reserves the right to request Connection Authorization from the ESA prior to connecting any service. All services disconnected for 6 months or longer will require Connection Authorization from the ESA.
- All customers must provide a metering installation according to Brantford Power standards, as outlined in the Brantford Power Conditions of Service. For remotely interrogated interval meters, the installation will include a dedicated telephone line.
- Brantford Power requires, and is entitled to, access to all metering installations, including remotely read interval meters.
BILLING & COLLECTION PROCEDURES
- Accounts are due when rendered.
- A Late Payment Charge will be applied if payment is received after 16 days from Statement Date
- If an account remains outstanding 7 days after the due date, a written "Reminder Notice" will be sent.
- If an account remains outstanding 12 days after the due date, an attempt will be made to reach the customer by telephone. If staff are unable to contact the customer by telephone, the auto dialer may be used.
- A written "Disconnection Notice" will be sent 17 days after the due date if the account remains outstanding and satisfactory payment arrangements have not been made. This notice will indicate that payment must be received by seven days after the issue of the notice or service will be discontinued.
- A charge known as a "Collection Charge," which is subject to OEB approval, may be made if a trip is necessary to collect the account.
- Should the service be disconnected for non-payment, a reconnection fee will be required in addition to the arrears, and an upgraded deposit may be applied.
- A charge known as a "Reconnection Charge," which is subject to OEB approval, will apply to reconnections during regular working hours. The after-hours Reconnection Charge, which is also subject to OEB approval, will be set such that the cost of the service is recovered. Payments made after 3:00 P.M. will be considered after-hours for purposes of application of the reconnection charge.
- Load limiters or programmable limiters may be used from December 1 through March 31. Brantford Power management may authorize full disconnection of service during winter months following 7 days use of a limiter or when warm weather is anticipated.
- Following disconnection or installation of a load limiter, a letter will be left at the premises indicating the reason for the action and the payments required in order to restore service. Amounts required will include the arrears, and reconnection fees.
- Important Safety and Liability Concern: All reconnections require that the customer have someone present while Brantford Power turns the power on OR sign a liability release form authorizing reconnection and assuming all liability.
LATE PAYMENT CHARGES
- Late payment interest charges are subject to approval of the Ontario Energy Board.
- Late payment charges apply to all outstanding accounts, including any unpaid amounts forwarded from a prior billing period.
AUTOMATIC PAYMENT PLAN
- Automatic Payment Plan or APP is available to all Brantford Power customers.
- A signed APP contract enables Brantford Power to request the transfer of funds from a customers bank account to Brantford Power bank account on the customer due date, similar to conventional payment by cheque.
- An APP contract remains in effect until cancelled by either party.
- An APP contract may be for payment of the actual account balance (Regular APP Plan), or an amount determined under the Equalized Payment Plan (EPP - Residential "Standard Supply Service" customers only).
- APP customers will continue to receive a regular monthly bill (ie. indicating the current consumption and charges).
- Customers are expected to immediately address a situation of not sufficient funds if they wish to continue as an APP customer. A second instance of not sufficient funds will result in immediate cancellation of the APP contract and any outstanding amounts will be payable on the normal due date.
- APP will be free of charges by Brantford Power.
EQUALIZED PAYMENT PLAN
- "Equalized Payment Plan" or EPP is available to residential "Standard Supply Service" customers participating in the Automatic Payment Plan or APP program.
- The EPP amount is based on twelve budget payments.
- No interest will be paid on over-collections and no charge will be made for under-collections.
- Brantford Power reserves the right to make adjustments in the equalized payment should rates change from the forecast level, or should the customer's consumption pattern change significantly from that used to calculate the budget amount.
PROMISE TO PAY AGREEMENTS
- In order to provide compassion and some flexibility in dealing with individual circumstances, Brantford Power is prepared to allow payment arrangements up to the disconnection deadline.
- Payment arrangements, with payments scheduled beyond the disconnection deadline, will be limited to one per customer in a twelve-month period. In exceptional circumstances management may authorize a second payment per twelve-month period beyond the normal disconnection deadline.
- Payment arrangements should clear arrears by the next due date and the current portion of the bill by the next disconnection deadline.
- All extensions beyond the normal disconnection deadline will be documented.
BANKRUPTCY ETC.
- Where Brantford Power has received a "Notice of Intention," "Notice of Proposal," "Notice of Bankruptcy" or a "Stay with the Companies Creditors Arrangement Act" for an account, the account will be finalized. Brantford Power may ask for prepayment on the customer's new account in order to provide continued service. Prepayments will be up to three months estimated billing. Failure to provide prepayment may result in disconnection subject to management approval.
N.S.F. CHEQUES
- After two N.S.F. cheques received for payment of a Brantford Power bill within a one year period, Brantford Power will accept only certified cheques, money orders or cash for a period of one year.
- Brantford Power reserves the right to require cash, certified cheque or money order to reconnect service if the customer has previously issued the utility a N.S.F. cheque.
BILLING ERRORS
- Where an error results in an overbilling, the customer will be credited for the amount erroneously paid for a period not exceeding six years.
- Where billing errors have resulted in an underbilling, the customer will be charged with the amount erroneously not billed for a period not exceeding:
i) two years, in the case of an individual residential customer who was not responsible for the error, and
ii) six years, in other cases (such as general service or when a residential customer was responsible for the error).
- In some situations where amounts owing are not material, the error spans less than 2 years for the customer, or the customer cannot be located, the billing should be corrected and considered for write off by Brantford Power.
APPENDIX A - DEFINITIONS
"Automatic Payment Plan" is a program under which a customer agrees to allow monthly transfer of funds from their bank account to the utility bank account on the customer due date in order to pay their electrical bill, similar to a conventional payment by cheque.
"Brantford Power" means Brantford Power Inc. its authorized agents.
"Due Date" means the last day on which a bill is payable without a late payment charge.
"Equalized Payment Plan" or EPP is a program intended to more evenly distribute electricity costs over the year.
"Exercise discretion" will refer to decisions made by the Chief Executive Officer, the Director of Administration and Planning, the Director of Finance, the Manager of Revenue, or the Manager, Customer Service that are not typical, and Brantford Power policy guidelines are not available to assist with the situation.
"Form of general service ownership" can be verified by a partnership agreement, articles of incorporation, copy of a municipal business tax assessment bill, or a letter from a lawyer or accountant attesting to the ownership and the form of ownership.
"General Service Customer" has service supplied to premises other than those designated as residential, large users, or classified as municipal street lighting. Without limiting the generality of the forgoing, this includes all service supplied to stores, offices, schools, public buildings, churches, hospitals, hotels, motels, restaurants, warehouses, clubs, theatres, service stations, manufacturing/processing operations and municipal pumping plants.
"General service property owner" proof may be provided in the form of a deed, municipal property tax assessment bill, or a letter from a lawyer attesting to ownership.
"Nature of business" includes all aspects of the business such as customers, suppliers, size, ownership, assets, creditors, etc.
Interest on cash deposits will accrue monthly. The interest paid will be the Prime Business Rate as published on the Bank of Canada Website less 2 percent updated quarterly.
"Reasonably assured" refers to a residential or general service property owner and refers to the fact that collection of future charges is very likely.
"Residential Customer" has service supplied to single-family dwelling units for domestic or household purposes, including seasonal occupancy.
"Sufficient customer identification" for residential customers will mean that the customer must provide at least two pieces of identification, at least one of which must include a photograph and signature. Acceptable identification includes: driver's license; health card; social insurance number; major credit card; birth certificate; passport; or automobile ownership.
"Tenants" are customers that rent the premises where the service is contracted.
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