Strengthening Consumer Protection and Electricity System Oversight Act, 2015 Chiarelli, Hon. Bob Minister of Energy — Bill 112 (41st Parliament, 1st Session)

Bill 112, 41-1

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Bill 112, Strengthening Consumer Protection and Electricity System Oversight Act, 2015

Chiarelli, Hon. Bob Minister of Energy

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[41] Bill 112 Royal Assent (PDF)

Bill 112 2015

An Act to amend the

Energy Consumer Protection Act, 2010 and the Ontario Energy Board Act, 1998

Her

Majesty, by and with the advice and consent of the Legislative Assembly of the

Province of Ontario, enacts as follows:

Energy Consumer Protection Act, 2010

Section

9 of the Energy Consumer Protection Act, 2010 is

repealed and the following substituted:

Manner

of determining prices re contracts

(1) In the

case of a contract with a consumer with respect to retailing of electricity,

the supplier shall determine the price it charges for electricity,

(

a) in

the manner and in accordance with the requirements that may be prescribed; and

(

b) in

the manner and in accordance with the requirements that may be required by a

code issued under

section 70.1 of the Ontario Energy Board

Act, 1998 or under any conditions of a licence.

Same,

gas

(2) In the case of a contract with a

consumer with respect to gas marketing, the supplier shall determine the price

it charges for gas,

(

a) in

the manner and in accordance with the requirements that may be prescribed; and

(

b) in

the manner and in accordance with the requirements that may be required by

rules made by the Board pursuant to clause 44 (1) (

c) of the Ontario Energy Board Act, 1998 or under any conditions of

a licence.

Conflict

(3) In the event of a conflict between the

regulations referred to in clause (1) (

a) and the code or conditions referred

to in clause (1) (b), or between the regulations referred to in clause (2) (

a) and the rules or conditions referred to in clause (2) (b), the regulations

prevail.

2. The

Act is amended by adding the following sections:

Door-to-door sales

9.1

(1) No

supplier shall,

(

a) sell

or offer to sell electricity or gas to a consumer in person at the consumer's

home; or

(

b) cause

a salesperson to sell or offer to sell electricity or gas to a consumer in

person at the consumer's home.

Contract

void

(2) A contract that is entered into as the

result of a contravention of subsection (1) is deemed to be void in accordance

with

section 16.

Exception,

advertising and marketing

(3) Subsection (1) does not restrict

advertising and marketing activities.

Advertising

and marketing to consumers

9.2

(1) The

Lieutenant Governor in Council may make regulations establishing rules governing

the manner, time and circumstances under which a supplier or salesperson may

advertise or market the sale of electricity or gas to a consumer in person at

the consumer's home.

Rules

must be obeyed

(2) Where rules have been established under

subsection (1), every supplier or salesperson who advertises or markets the

sale of electricity or gas to a consumer in person at the consumer's home shall

comply with the rules.

Contract

void

(3) A contract that is entered into as the

result of a contravention of the rules established under subsection (1) is

deemed to be void in accordance with

section 16.

Remuneration

9.3 No

supplier shall provide remuneration to a salesperson who sells or offers to

sell electricity or gas to consumers or who advertises or markets the sale of

electricity or gas to consumers on behalf of the supplier if the manner of

remuneration contravenes the rules provided for in the regulations.

3. (1) Clause

12 (1) (

b) of the Act is amended by striking out " and

subject to such requirements as may be prescribed in accordance with clause

(a)" in the portion before subclause (i).

(2) Clause 12 (1) (

c) of the Act is amended

by striking out " and subject to such requirements

as may be prescribed in accordance with clause (a)" in the portion before

subclause (i).

(3) Section 12 of the Act is amended by

adding the following subsection:

Conflict

(1.1) In the event of a conflict between

the regulations referred to in clause (1) (

a) and the code referred to in

clause (1) (b), or between the regulations referred to in clause (1) (

a) and

the rules referred to in clause (1) (c), the regulations prevail.

4. Subsection

16 (1) of the Act is amended by adding the following clause:

(0.

a) the contract is entered into as

the result of a contravention of subsection 9.1 (1) or the rules established

under subsection 9.2 (1);

Section

17 of the Act is repealed.

6. (1) Clause

35 (3) (

f) of the Act is amended by striking out "the price a retailer charges

for electricity" and substituting "the price a supplier charges for electricity

or gas".

(2) Subsection 35 (3) of the Act is amended

by adding the following clause:

(h.1) providing for rules for the

purposes of

section 9.3;

Ontario Energy Board Act, 1998

7. Subsection

1 (1) of the Ontario Energy Board Act, 1998 is

amended by adding the following paragraph:

1.1 To promote the

education of consumers.

8. The

Act is amended by adding the following section:

Consumer advocacy

4.4.1

(1) The

Board shall establish one or more processes by which the interests of consumers

may be represented in proceedings before the Board, through advocacy and

through any other modes of representation provided for by the Board.

Regulations

(2) The Lieutenant Governor in Council may

make regulations governing the process or processes under subsection (1).

9. The

Act is amended by adding the following section:

Head

office of distributor in Ontario

58.1

(1) A

distributor that is licensed under this Part to own or operate a distribution

system shall maintain its head office in Ontario.

What

constitutes "maintained in Ontario"

(2) For the purposes of subsection (1), a

distributor maintains its head office in Ontario if,

(

a) the

principal executive office for the distributor and its subsidiaries is located

in Ontario;

(

b) the

chief executive officer and substantially all of the officers with strategic

decision-making or management authority for the distributor and its

subsidiaries principally perform their duties at that principal executive office

or elsewhere in Ontario and are resident in Ontario; and

(

c) substantially all of the

strategic decision-making, corporate planning, corporate finance and other executive

functions of the distributor and its subsidiaries are carried out at that

principal executive office or elsewhere in Ontario.

Definition, "subsidiary"

(3) In this section,

"subsidiary", with respect to a

corporation, has the same meaning as in the Business

Corporations Act .

(1) Section

59 of the Act is amended by adding the following subsection:

Failure to meet obligations or

reliability standards

(1.1) Subsection (2) applies if the Board

has determined that,

(

a) a distributor has failed or is

likely to fail to meet its obligations under

section 29 of the Electricity Act, 1998 ; or

(

b) a transmitter has failed or is

likely to fail to meet,

(

i) a

reliability standard as defined in subsection 2 (1) of the Electricity Act, 1998 ,

(ii) a

reliability standard provided for in an order, licence or code issued by the

Board, or in the market rules established under

section 32 of the Electricity Act, 1998 , or

(iii) a

standard prescribed by regulation under this Act.

(2) Subsection 59 (2) of the Act is

repealed and the following substituted:

Powers of Board

(2) The Board may,

(

a) require the licensee, as a

condition of an interim licence, to take possession and control of the business

of the transmitter or distributor;

(

b) order the transmitter or

distributor to surrender possession and control of its business to the person

licensed under subsection (1); and

(

c) without a hearing, amend or

suspend the licence of the transmitter or distributor.

(3) Subsection 59 (3) of the Act is amended

by striking out "distributor" wherever it appears and substituting in each case

"transmitter or distributor".

(4) Subsection 59 (3.1) of the Act is

amended by striking out "distributor" and substituting "transmitter or distributor".

(5) Subsection 59 (4) of the Act is amended

by striking out "distributor" at the end and substituting "transmitter or

distributor".

(6) Subsection 59 (6) of the Act is amended

by striking out "distributor" and substituting "transmitter or distributor".

(7) Subsection 59 (9) of the Act is amended

by striking out "three months" and substituting "six months".

(8) Subsection 59 (10) of the Act is

amended by striking out "distributor" wherever it occurs and substituting in

each case "transmitter or distributor".

(9) Subsection 59 (11) of the Act is

amended by striking out "distributor" and substituting "transmitter or distributor".

11. The

Act is amended by adding the following section:

Appointment

of supervisor

Failure

to meet financial obligations, reliability standards, etc.

59.1 (1) Subsection

(2) applies if the Board has determined that a transmitter or distributor,

(

a) has

failed or is likely to fail to meet its financial obligations as they become

due, or that the financial condition of the transmitter or distributor has

otherwise significantly deteriorated; or

(

b) may

not be able to meet,

(

i) a

reliability standard as defined in subsection 2 (1) of the Electricity Act, 1998 ,

(ii) a

reliability standard provided for in an order, licence or code issued by the

Board, or in the market rules established under

section 32 of the Electricity Act, 1998 , or

(iii) a

standard prescribed by regulation under this Act.

Appointment

(2) Where any of the circumstances in

subsection (1) apply, the Board may appoint a supervisor to,

(

a) supervise the management of the

business of the transmitter or distributor; and

(

b) prepare such reports and

information, including any recommendations, as may be required by the Board,

and file them with the Board.

Provision of information to supervisor

(3) The transmitter or distributor shall

promptly provide the supervisor with such assistance, information and access to

documents or records relating to the business of the transmitter or distributor

as the supervisor may reasonably request, within the time period and in the

form reasonably requested by the supervisor.

Board orders

(4) Upon receipt of a report or information

from a supervisor under clause (2) (b), the Board may order that the

transmitter or distributor take such remedial steps as the Board considers

appropriate, having regard to the report or information and any recommendations

made by the supervisor.

Term and renewal of appointment

(5) An appointment under subsection

(2) shall be for a specified term that does not exceed one year and may be renewed

once.

Costs

(6) The Board may order that the costs

incurred by the Board or the supervisor under this

section shall be paid by the

transmitter or the distributor, or as otherwise determined by the Board.

May act without notice

(7) The Board may act under this

section

without notice and without a hearing.

Hearing to review

(8) The Board shall, upon the request of a

transmitter or distributor against whom an order has been made under subsection

(4), hold a hearing to review the order.

Evidence, etc.

(9) Sections 110 to 112 apply, with necessary

modifications, to a supervisor appointed under this section, to documents,

records and information obtained by a supervisor, and to reports and

information prepared by a supervisor under clause (2) (b).

(1) Section

70 of the Act is amended by adding the following subsection:

Records in Ontario

(4.1) Every licence shall be deemed to

contain a condition requiring the licensee to comply with any requirements set

by the Board with respect to keeping certain records of the licensee in Ontario

(2) Subsecti

Document details

Collection	Ontario — Bills
Citation	Bill 112, 41-1
Type	bill
Volume / chapter	p41 s1 bill 112 html
Language	en
Format	html
Source	PROVINCIAL
Identifier	0e87510460aeaee5dd659142c056e7a686450090

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