In this article:
- Cancelling an energy contract in Ontario without penalty
- How the 10-day cooling-off period works
- What happens if you cancel your contract before verification
- Cancellation rules based on your contract
- How moving to a new address can affect your contract
It may be that you are moving, or you simply want to cancel your contract. What do you do? Let’s break it down.
Leaving Your Energy Retailer and Ending Your Contract
There are several reasons that you may wish to end your contract. Perhaps you just signed, but you have reconsidered. Or you are moving, or simply no longer wish to do business with them. What will happen depends on your specific situation.
Canceling Within 10 Days of Signing
When you sign an energy contract in Ontario, there is a 10-day cooling-off period during which you can change your mind and cancel. During this period, you cannot be charged any cancellation fees, and your utility service will not be stopped. But if you do decide to cancel, it is important to contact your energy provider without delay.
Canceling Before Contract Verification
After the cooling off period, electricity retailers are required in certain cases to verify the contract before it becomes fully valid. They may do this by contacting you by phone or through other approved methods, depending on how the contract was entered into. If verification is completed over the phone, the retailer must follow consumer protection requirements set by the Ontario Energy Board, and the conversation may be recorded.
If your contract requires verification and you have not yet verified it, or you refuse to verify it, the contract may be invalidated, and you may cancel without penalty. Your service will be reverted to your local utility.
However, there are cases in which a retailer does not have to verify a contract, depending on how the agreement was made (for example, online or customer-initiated agreements).
Canceling After Your First Bill
After your contract is in effect, you may still cancel at any time, but cancellation fees may apply depending on the terms of your contract. You will still have to pay any outstanding bills, and your service will be reverted to your local utility without interruption.
Canceling More Than 30 Days After Your First Bill
At this point, your retail energy provider may require you to pay a cancellation fee for breaking the contract early. For many customers, this fee is outlined in the contract and may depend on factors such as the type of contract, remaining term, and energy usage.
However, large volume consumers may be required to pay cancellation fees calculated according to a different scale, as specified in their agreement.
For more information, refer to the terms of your contract.
Also, keep an eye out for special offers from other retailers, which sometimes offer to pay your cancellation fees owed to another provider if you sign up.
Canceling Due to a Change of Address
If you are moving, you may submit a request to cancel your provider. In many cases, if your retailer cannot provide service at your new address, your contract can be cancelled without penalty. Please refer to your contract for more information.
Key takeaways:
- You have a 10-day cooling-off period after signing to cancel your contract without penalty.
- Some contracts must be verified before they become fully valid.
- You can cancel your contract at any time, but fees may apply depending on the terms.
- Cancellation fees are not fixed and vary based on contract type, term, and usage.
- Moving may allow penalty-free cancellation if your retailer cannot serve your new address.
