Leaving an Electricity Contract in Ontario

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Sometimes circumstances change and you decide that you no longer want to continue with the energy contract that you have chosen. This may involve being obliged to pay an early-exit/cancellation fee, but not always. Whether or not you face financial implications for changing your mind depends on the timing.

During the First 10 Days

After you have confirmed that you have received the contract, you have 10 days in which you can change your mind and cancel it. You will not have to pay any cancellation fees and your electricity service should not be interrupted. You can cancel your contract by contacting your energy marketer.

During the 30 Days Following Your First Bill

If you decide to cancel your electricity contract within the first 30 days of having received your first bill you may cancel it without paying any cancellation fees. You will, however, have to pay that first bill. Your new electricity supplier will become your local utility (so you will be switched to paying RPP), and your electricity supply will not be interrupted.

Did You Verify Your Contract?

Between 10 and 45 days after you have signed your contract, your electricity retailer should contact you to verify your contract. They may do this over the phone, in which case they must follow an OEB-approved script and record the conversation. They must be able to send you a copy of the recorded conversation 10 days after you ask for it. If you refuse to verify your contract it will become invalid, and you will not have to pay a cancellation fee for ending it. In this case, you will switch to being supplied by your local utility.

However, an electricity retailer does not have to verify your contract under the following conditions:

  • You (the consumer) initiated contact with the electricity retailer
  • You responded to a direct mail solitication
  • You entered the contract over the internet

It is More Than 30 Days After You Received Your First Bill

In this case you may have to pay a cancellation/early-exit fee, as outlined in your contract. Your electricity contract must contain a description of the situations in which you can cancel the contract and what the according fees are in each circumstance. For most residential consumers, the maximum cancellation fee that can be charged is $50 per year, or part year, remaining on the contract.

Changing to another contract with an energy supplier?

Some energy marketers offer to pay your early exit fees if you are currently on an energy contract with another supplier.