Should you sign a fixed-price contract? It depends on whether you think the speculative oil bubble, which is dragging natural gas along, too, could burst. Remember that Enbridge, a regulated utility, will review its prices again at the beginning of October and next January.
If you can ride out a period of higher heating bills by getting onto a billing plan where costs are spread evenly through the year, you can benefit from any market corrections. But if you lock in today's higher gas prices for the next five years, you're stuck with them.
On Your Side tries to help people who have buyer's remorse after signing long-term energy deals with door-to-door sales agents.
Here are a few of many cases we've resolved recently, along with advice on how to avoid such problems.
Corey Peters had a contract with Universal Energy Corp. A year later, someone came to his door offering a better price.
He thought he was dealing with the same company and signed a new agreement, reaffirming it by phone. Then, he got a call from Universal saying he'd have to pay $800 to get out of his existing contract.
Peters made two mistakes. He didn't realize the sales agent was from Direct Energy (a rival firm); and he didn't call Direct Energy to cancel. It, too, charged him a hefty cancellation fee and later sent his account to a collection agency.
With our help, he is now released from his new contract without penalty. But he has learned a lesson.
Advice: Know who's supplying your gas. Read your Enbridge bill carefully to find out whether you're with another supplier and who it is.
If you have a long-term contract, be aware that other marketers will try to switch you over to them in midstream. Don't say yes unless you're prepared to pay a fee.
And if you stay with your current supplier, always cancel any new contracts you sign unwittingly.
Jason Oliver works at home in Kanata (near Ottawa). He says he was harassed by agents for Universal Energy calling him or coming to his door several times a day.
He finally signed an electricity deal on June 6 and reaffirmed the agreement on June 16. He tried to cancel on June 22, but couldn't avoid paying a fee.
So, why did he sign? He says the last agent rang his doorbell frantically, barged into his house, demanded to see his bill and wouldn't take no for an answer.
"I'd hate to think this was part of the standard training program of Universal Energy for its agents to wrangle themselves into a home," he said. "If somebody clearly refuses to deal with you, why bother them three dozen more times when there are other prospects to pursue?"
Company spokesperson Jonathan Drummond said Oliver didn't complain about agent behaviour during the reaffirmation call.
"UEC considers the agreement to be valid. However, as a goodwill gesture, UEC will process the cancellation without applying early termination charges."
Advice: If you sign at the door, remember that you need to reaffirm the contract by phone for it to remain in effect.
So, if you regret signing, say so. Express your objections clearly.
This call is recorded and becomes a crucial piece of evidence later if there's a dispute about your intentions.
If you have reaffirmed, you probably won't be able to get out without paying a fee.
Write to onyourside@thestar.ca
or check www.ellenroseman.com, the On Your Side blog.
