Direct energy seller still up to old tricks

Summitt Energy door-to-door sales raise consumer protection concerns in Ontario, with Toronto Hydro confusion, Ontario Energy Board fines, misrepresentation claims, evergreen program add-ons, high cancellation fees, and reaffirmation calls trapping newcomers and renters.

Bruno Beaufils came to Canada from France a few months ago. He rents an apartment in downtown Toronto while working at a temporary job.

Last October, a Summitt Energy representative came to his door with what consumer advocates call energy fraud at the door tactics and said he was working with Toronto Hydro.

"He told me the whole building was signing contracts, something we had to do to make sure we would have the right price for electricity. He made it sound like it was a standard procedure," Beaufils says.

During that visit, he agreed to sign two contracts. One was a five-year plan for electricity and one was a five-year "evergreen program" to reduce greenhouse gases, which would cost him $12.99 a month.

Though he tried to cancel last month, he waited too long. Now he has to pay $997.10 in penalties to get out of his electricity contract and $791.09 for his evergreen contract – even before he has received any bills from Summitt Energy.

He doesn't speak English well, nor does he know that energy deals are sold door to door by people who will say anything to get a signature.

This case bothered me for a number of reasons:

• I get more complaints about Summitt than about other energy sellers. This year alone, I've received 22 new complaints, or one almost every weekday.

• Many Summitt prospects think they're dealing with their local utility. They don't realize they're being asked to get their gas and electricity supply at a higher rate, and to beware offers from power retailers that promise savings.

• When dealing with complaints about misrepresentation, Summitt says customers have to read their contracts and cancel right away. If they wait too long, they're out of luck.

In other Summitt cases I've handled, I've had some success.

Jasper Chou: New to Ontario, he was visited by a Summitt agent within a week of moving into his new home. He didn't get a contract, just a brochure, and didn't know he was locked in until the first bills arrived. Summitt agreed to write off penalties of $2,123 to cancel his gas and electricity contracts.

Sam Agu: He found out Summitt was his supplier after complaining to his utility about high gas bills. When he checked the contract, he insisted that the signature wasn't his. Summitt failed to respond to his lawyer and sent a collection agency after him for $1,250. It later cancelled without penalty.

Nariman Askari: He rented an apartment with friends, but paid for all the utility bills. His roommate signed for electricity and the evergreen program, but didn't tell him until the high bills tipped him off. Summitt agreed to cancel both contracts without a penalty.

January Lumagbas: The first-time homeowner had a visit from Summitt after moving in. She agreed to a water heater rental, but cancelled without penalty since she already owned one. Only with the Star's help did she avoid paying a $1,106 fee to cancel the gas.

Gaetana Girardi, compliance director, usually agrees to help when there's evidence of wrongdoing. But she dug in her heels with Beaufils, pointing out that he said yes when the company called to reaffirm both deals.

I listened to the reaffirmation calls and felt they skimped on information. Nothing was said about the fact that, if he said yes, he would be stuck paying almost $2,000 to get out.

Twice I tried to get him released without charge and twice I failed. But finally, Girardi agreed to release him if he can provide proof of being new to Canada. This is better than her earlier demand for proof of income, which he refused to provide.

The Ontario Energy Board fined Summitt last year, but its conduct hasn't changed. Ontario needs to protect newcomers, renters and first-time homeowners from deceptive energy sales at the door, as the province is already cracking down on energy retailers in other cases.

Elsewhere, New York State is clamping down on energy providers too.

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