Press Release |
Don't pass on lawsuit costs: Klees .... Article in the Era Banner March 22, 2011 By Sean Pearce
Don't punish the customer. Newmarket-Aurora MPP Frank Klees urges utility companies not to pass on lawsuit expenses to customers who already have skyrocketing bills thanks to energy costs and added taxes. Click here to read the article
Klees asks Powersteam not to pass cost to users ...Article in The Auroran March 22, 2011 click here
Frankly Speaking Column published in The Auroran March 22, 2011 More Hydro Madness click here
Press Release March 19, 2011
MPP to Utility: Don't Bill Customers for Utility's Lawsuit Damages
Newmarket-Aurora MPP Frank Klees has called on the Powerstream Board of Directors not to pass on to its Aurora customers, the cost of a class action lawsuit that resulted in the awarding of more than $18 million in damages against the provinces' utilities.
The lawsuit was based on the Late Payment Penalties policy under which natural gas and hydro-electric utilities have charged customers a penalty if payments were received past the due date. The Supreme Court of Canada ruled that in some circumstances, the amount charged exceeded the 60% maximum rate of interest allowed under the Criminal Code of Canada.
After losing the court challenge, utilities appealed to the Ontario Energy Board for the right to recover the more than $18 million in damages and costs from their customers.
“For the utilities to turn around and attempt to recover the damages and costs of a lawsuit they lost from their customers, who they overcharged in the first place is outrageous" said Klees. "The Ontario Energy Board may have felt compelled to allow them to do this for technical reasons, but it doesn't pass the fairness test and the utilities should simply absorb these costs internally".
Newmarket Hydro has already advised the OEB that it will not bill customers for its share of the damages, but Powerstream has not yet made a decision about how it intends to handle the issue.
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References:
Frank Klees, MPP
905 750 0019
Attachment: letter to Powerstream
Also Click Here for Frankly Speaking articles on this subject