Bill 228 2009

An Act to amend the Electricity Act, 1998 to protect residential customers from hardships created by security deposits

Note: This Act amends the Electricity Act, 1998.  For the legislative history of the Act, see the Table of Consolidated Public Statutes – Detailed Legislative History at www.e-Laws.gov.on.ca.

Her Majesty, by and with the advice and consent of the Legislative Assembly of the Province of Ontario, enacts as follows:

   1.  (1)  Subsection 31 (1) of the Electricity Act, 1998 is amended by adding "Subject to subsection (1.1)" at the beginning.

   (2)  Section 31 of the Act is amended by adding the following subsections:

Exception

   (1.1)  A distributor shall not shut off the distribution of electricity under subsection (1) to a property that is used, or is intended to be used, for residential purposes if,

  (a)  the only amount payable that is overdue is in respect of a new security deposit, or an increase to an existing security deposit, demanded by the distributor; and

  (b)  the person who is responsible for the overdue amount was receiving electricity from the distributor at the time that the distributor demanded the deposit or the increase to a deposit.

Same

   (1.2)  Subsection (1.1) applies despite,

  (a)  any provision in a code issued by the Ontario Energy Board under section 70.1 of the Ontario Energy Board Act, 1998, including the Distribution System Code; or

  (b)  any provision in a contract between a distributor and a person who is receiving electricity from the distributor for a property that is used, or is intended to be used, for residential purposes.

Notice of exception

   (1.3)  Within three months after the day subsection (1.1) comes into force, a distributor shall notify each person who is at that time receiving electricity from the distributor for a property that is used, or is intended to be used, for residential purposes of the prohibition in subsection (1.1). 

Commencement

   2.  This Act comes into force on the day it receives Royal Assent.

Short title

   3.  The short title of this Act is the Electricity Amendment Act (Protection Against Security Deposits), 2009.

EXPLANATORY NOTE

The Bill amends section 31 of the Electricity Act, 1998 to prohibit electricity distributors from shutting off the distribution of electricity to a residential property if the only overdue amount payable by the person receiving the electricity is in respect of a new security deposit or an increase to an existing security deposit, and the person was receiving electricity at the time that the new security deposit or increase was demanded.  The Bill also requires electricity distributors to provide notice of this prohibition.