How to cancel an energy retailer contract in Ontario or Alberta: cooling-off, fees and rights

In Ontario, the Energy Consumer Protection Act, 2010 and its regulation (O. Reg. 389/10) give households several ways out of an electricity or gas retail contract: you can cancel for any reason within 10 days after you acknowledge receiving a text-based copy of the contract; you can cancel without cost up to 30 days after receiving the second bill under the contract; you can cancel without cost if you move permanently or the contract was automatically renewed or extended; and at any other time you can cancel on 10 days' notice, paying at most a $50 fee for a household contract entered into under the current rules. In Alberta, every competitive retailer has a 10-calendar-day cooling-off period in which you can cancel for any reason without penalty, according to the Utilities Consumer Advocate; after that, the exit terms in your contract apply.

This guide is part of our complaints hub.

Ontario: your cancellation rights in detail

Notes on these rules:

• The required contract statements include your right to cancel within 10 days and within 30 days after the second bill; check your copy.
• Cancellation may be expressed in any way that shows you intend to cancel, but unless the regulations say otherwise the notice should be in writing, sent by a method that proves the date (email with a copy kept, registered mail, courier).
• Refunds after a cancellation are due within a prescribed period (60 days after the cancellation takes effect under the regulation).
• If you cancel within the 10-day period or because of unfair practices and do not get your refund, the Act allows you to sue for twice the amount you paid.
• A contract that was required to be verified and was not is deemed void, and you are not liable for cancellation or other charges under it.

Door-to-door sales are banned

Ontario's Act prohibits suppliers and their salespeople from selling or offering to sell electricity or gas to a consumer in person at the consumer's home. If someone signed you up at your door, tell the retailer you are cancelling and complain to the Ontario Energy Board.

Renewals

A retailer can renew or extend only if the contract allows it and it sends you, between 120 and 60 days before expiry, a copy of the proposed renewal, a disclosure statement and price comparison, and a renewal form. A contract that was automatically renewed or extended can be cancelled without cost.

Alberta: cooling-off and exit fees

The UCA explains that:

• every competitive retailer gives a 10-calendar-day cooling-off period; cancel within it for any reason, and your previous retailer continues service;
• before switching, check whether your current retailer requires notice or charges an exit fee;
• a switch can take 10 to 90 days, and you pay the old retailer until it happens;
• you can leave the Rate of Last Resort at any time without penalty.

Exit fees on fixed-price contracts are set in the contract. Read the cancellation clause before you sign; if a retailer charges a fee you did not agree to, ask the UCA mediation team for help.

How to cancel, step by step

1. Find your contract and the date you received it, plus your first and second bill dates.
2. Pick the right ground: 10-day cooling-off, after second bill, moving, auto-renewal, or notice.
3. Write a short notice: your name, service address, account number, contract number, "I am cancelling this contract under [ground]", date, signature.
4. Send it by a traceable method and keep proof.
5. Check your bills: in Ontario the retailer must notify the distributor; your account should return to the RPP or the default. In Alberta, ensure your new retailer or the RoLR provider is supplying you.
6. Escalate to the OEB or UCA if the company does not respond.

Is cancelling worth it?

If you are past the free windows and would pay a fee, compare what staying costs with the default. Use the contract payback tool: exit fee as the cost, and (your contract's effective price − default price) × annual usage as the yearly saving. In Ontario, remember the effective contract price includes the Global Adjustment; see fixed contracts vs the default rate.

Illustrative Ontario example: contract effective price 14.5¢/kWh (contract + GA + fee), RPP about 11.4¢, 8,400 kWh a year. Saving if you cancel = 3.1¢ × 8,400 = $260.40 a year. Fee $50. Payback about 0.19 years, or roughly 10 weeks.

Mistakes to avoid

• Phoning only. Follow up in writing so the date is provable.
• Waiting for the next bill. Rights tied to the second bill expire 30 days after it arrives.
• Signing a new contract to "cancel" the old one. It can stack obligations; cancel first.
• Ignoring bundled equipment. Separate equipment or rental agreements have their own terms.

Related: energy contract mistakes and sales tactics shows how people end up in contracts they want to leave, and winter disconnection rules covers what happens if a contract has left you behind on payments.

FAQ

Does the Ontario 10-day period start when I sign?

It runs until 10 days after the copy of the contract is delivered and you acknowledge receipt, so it can end later than 10 days after signing.

Can the retailer charge me for energy used before cancellation?

Yes, for energy supplied up to the date the cancellation takes effect, except where the rules give a full refund.

What if the retailer says I verified the contract by phone?

Ask for the recording and the verification date; verification rules are in the regulation.

Do these Ontario rules apply to gas marketers?

Yes, the Act covers both electricity retailers and gas marketers.

Sources

• Ontario e-Laws — Energy Consumer Protection Act, 2010 (S.O. 2010, c. 8) and O. Reg. 389/10
• Ontario Energy Board — retailer and marketer complaints
• Utilities Consumer Advocate — switching, cooling-off period and mediation
• Alberta Utilities Commission — retail market rules