Billing Problems, Complaints and Official Sources
Energy contract mistakes Canadians make: sales tactics, hidden fees and how to avoid them
The most common costly mistakes with electricity and gas contracts and plans in Canada, the sales patterns behind them, and the rules and checks that protect you.
The energy mistakes that cost Canadian households the most are rarely about picking the "wrong" company. They follow patterns: signing a contract without comparing it with the regulated default, missing the Global Adjustment or admin fees in the comparison, letting a cooling-off or free-cancellation window pass, agreeing on the doorstep or by phone under pressure, and auto-pilot renewals. Most of these can be avoided with a written copy of the offer, your own usage data and ten minutes of arithmetic. Ontario law goes further and bans door-to-door energy sales outright. This guide describes the patterns generically; it does not name or rank companies.
It is part of our complaints and help hub.
Pattern 1: "Your rates are going up, lock in now"
What happens: a caller or website warns that regulated prices will rise and offers a multi-year fixed price.
Why it costs money: regulated prices can go down as well as up. Ontario's RPP prices fell on 1 November 2026 (tiered from 12.0¢ to 11.2¢); Alberta's Rate of Last Resort has been fixed at about 12¢ for 2025–2026. A long fixed contract signed on a scare can lock in a higher price.
What to do: ask for the offer in writing, compare it with the current default and its effective date, and use the contract payback tool. See fixed contracts vs the default rate.
Pattern 2: comparing the wrong numbers
What happens: an Ontario electricity contract price of a few cents per kWh is compared with the RPP price, and looks cheaper.
Why it costs money: RPP prices include the Global Adjustment; a retail contract adds it separately each month. Admin fees add more.
Illustrative effect: 8,400 kWh a year, contract 7.0¢ + assumed GA 7.5¢ + $4.95 monthly fee = $1,277.40 a year, against about $957.60 on RPP tiered: roughly $320 a year more, despite the "lower" headline price.
What to do: read the disclosure statement and price comparison that Ontario rules require retailers to provide with the contract.
Pattern 3: the doorstep or the "utility representative"
What happens: someone at the door, or a caller, implies they represent the utility or the government, and asks to see your bill.
Why it costs money: your account number is enough to start a switch.
Rules that help: in Ontario, the Energy Consumer Protection Act, 2010 prohibits selling or offering to sell electricity or gas to a consumer in person at the consumer's home. Regulated utilities do not sell retail contracts at the door. In Alberta, the UCA advises reading all terms before signing and reminds consumers of the 10-day cooling-off period.
What to do: never show your bill to an unexpected visitor. Ask for a business name and a written offer, then close the door. If you think a contract was started without your consent, cancel in writing and complain to the OEB or UCA.
Pattern 4: the window that closes quietly
What happens: you have doubts after signing but wait for the first bill.
Why it costs money: Ontario's 10-day cooling-off right runs from your acknowledgement of the contract copy; the free cancellation after the second bill lasts only 30 days after that bill arrives. In Alberta, the cooling-off period is 10 calendar days. After that, exit fees in your contract apply (capped at $50 for most Ontario household contracts under the current rules).
What to do: mark the dates on signing. See cancellation rights.
Pattern 5: renewal on autopilot
What happens: the contract ends and a renewal notice arrives with a new price.
Why it costs money: renewal prices are not always competitive. In Ontario a retailer must send a renewal package 60 to 120 days before expiry, and a contract that was renewed or extended automatically can be cancelled without cost.
What to do: re-compare at every renewal, with the default price at that time.
Pattern 6: the plan that does not match your life
What happens: an Ontario household moves to ultra-low overnight for cheap nights, but cooks, does laundry and runs heating at 4–9 p.m. on weekdays at 37.7¢.
What to do: compute your whole-home average before switching: TOU vs ULO vs tiered. The same applies to BC Hydro's time-of-day option and Hydro-Québec's Flex D.
Pattern 7: bundles and add-ons
What happens: an energy offer is bundled with something else: a green energy premium, a protection plan, a smart thermostat or equipment on a separate agreement.
What to do: price each part separately. Green premiums should state what is certified; equipment agreements have their own terms and are outside this site's scope, so read them carefully or get advice before signing.
Pattern 8: ignoring the bill after switching
What happens: the first bills under a new plan or retailer show a different price than agreed, and nobody checks.
What to do: check the first two bills against the contract. In Ontario, those two bills are also your window for free cancellation.
Red-flag checklist
| Red flag | Why it matters |
|---|---|
| Pressure to decide today | Real offers can be put in writing |
| Request to see your bill or account number before you agree | It can be used to start a switch |
| "We are with the utility" or "the government" | Regulated utilities and regulators do not sell retail contracts at the door |
| No written price comparison | Ontario requires one with retail contracts |
| Price quoted without fees or GA | You cannot compare totals |
| Long term with large exit fees | Hard to leave if the default falls |
The plan switch checklist turns these into tick boxes.
If a bill already looks wrong after a switch, see why your hydro bill is suddenly high.
FAQ
Are energy retailers scams?
No. Licensed retailers are legal and can suit some households. The problems come from sales practices and comparisons, which is why the rules above exist.
What should I do if a salesperson already has my account number?
Watch for a contract or welcome package. If you did not agree, cancel in writing and complain to the OEB (Ontario) or UCA (Alberta).
Can I be switched without my signature?
Rules require agreement and, in Ontario, contract delivery and in some cases verification. A switch you did not agree to should be reported.
Do these patterns apply to natural gas too?
Yes. Gas marketers in Ontario follow the same Act, and Alberta gas retailers the same switching rules.
Sources
- Ontario Energy Board — retailer and marketer rules and complaints
- Ontario e-Laws — Energy Consumer Protection Act, 2010 and O. Reg. 389/10
- Utilities Consumer Advocate — choosing a retailer, cooling-off and mediation
- Canadian Anti-Fraud Centre — reporting impersonation and fraud
