Door to Door and Telemarketing Retail Energy Sales in Alberta: Always a Scam?
Many Albertans complain of being bothered by door-to-door energy salespeople or by retail energy telemarketers. Find out more about the regulations energy retailers must follow and whether it's a good idea to sign an energy contract at the door or over the phone.
Door to Door Sales: Rules energy marketers must follow
Competitive energy retailers must abide by the rules regarding door-to-door sales set out by the Energy Marketing Regulation. These include:
- All door-to-door sales representatives must present identification upon request by a consumer
- The identification must show the name of the salesperson, the name, address and licence number of the energy retail company, and the signature of the signing authority for the licence
- Competitive energy retail sales representatives must not contact customers after 9 p.m. and before 8 a.m.
- The contract must be in writing, and include - among others - the full name and contact information of both the customer and the marketer, specific start and end dates for the contract, any applicable exit fees, and a standard disclosure statement on its first page
- The signature of the customer and the energy salesperson
Signing an Energy Contract at the Door
In general, we do not recommend signing an energy contract at the door. Signing an energy contract is a long-term decision, and should be something that you have thought through and done research for. If an energy salesperson comes to your door and tries to get you to sign a contract, you should ask them to leave the information about the contract in writing so that you can think about it some more before signing.
Callmepower.ca provides you with a wealth of information regarding your electricity and natural gas bills, including tips on how to compare energy suppliers. As a brief summary, make sure to ask about the following if an energy salesperson comes to your door:
- Administration charges
- Cancellation fees (early exit fees)
- Late payment charges
- If any of the current services they are proposing would affect any current services that you have (e.g. renting a water furnace)
Common Energy Door-to-Door Scams
Unfortunately there have been several energy retail companies that have been found to use misleading sales tactics. Watch out for the following lines, and don't sign an energy contract if you hear any one of the following lines:
- "I'm working on behalf of your utility. Can I take a look at your electricity/gas bill so that I can make sure that you aren't paying too high of a rate?"
Do not show your current electricity or gas bill to any energy sales representatives who knock at your door. If you hear this line, you should request to see identification (such as a business card or a badge) so that you can verify the person's identity. - "I'm doing a survey for ____ (government or company). Can I ask you a few questions?"
As a matter of course you should always ask for identification from people knocking on your door. - "We have a sale/special price on our energy rates that ends tomorrow."
The salesperson may be trying to pressure you into signing a contract, and the price listed may actually be the standard price - "We;ll give you a good deal if you we can use you in our advertising"
Again, the salesperson may be trying to pressure you into signing a contract, and the "good deal" listed may not actually be any different from the standard price
Recent Energy Marketing Scam!
In January 2015, many several businesses throughout Alberta have reported receiving phone calls from their utilities telling them that they were late on their bills and threatening disconnection unless they paid immediately. This is not standard practice for utility disconnection, and anyone receiving a suspicious call should contact the National Anti-Fraud Centre at 1-888-495-8501. Find out more about what happens when you don't pay your utility bill
Rules for Telemarketing Energy Contracts
Energy telemarketers must abide by the following rules:
- They must digitally record all telephone contract calls and keep the recording for the duration of the contract
- They must tell the customer that their call is being recorded and the customer must give consent
- The marketer cannot sell a contract if the customer does not give consent for having the call recorded
- After the customer has given verbal consent to the energy contract, the energy marketer must send a version of the contract in writing to the customer
Ending a Door-to-Door or Telemarketing Energy Contract
There are special rules for ending an energy contract that you purchased from a door-to-door energy salesperson or from a telemarketer.
Ending an Energy Contract Purchased From a Door-to-Door Salesperson
You have a 10-day cooling period between the date that the energy marketer received the signed contract during which you can change your mind and cancel the contract without paying any penalties. They must return any security deposit amount that they may have asked from you. If you don't receive the security back within 15 days you can contact Service Alberta to make a claim against the security.
Ending an Energy Contract Purchased Over the Phone from a Telemarketer
If you entered a contract over the phone you have up to 60 days after the first billing statement to change your mind and cancel without having to pay cancellation fees. You will, however, be responsible for paying any charges you have incurred up to that date.