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Home > About Hydro One Networks > Our Services > Conditions of Service
Conditions of Service — Our New Security Deposit Policy
Our Security Deposit Policy has changed. To ensure all customers are
treated equally, the Ontario Energy Board provided guidelines to all electricity distributors on how to apply security deposits across Ontario. Security
deposits are collected to guarantee payment of future charges. Please
take a moment to read this summary.
1. Requirements for Security Deposits
Security deposits may be collected when a customer initially applies
for service, their electricity consumption increases or when they have
failed to maintain a good payment history.
The security deposit amount will be applied to the customer's account
and will appear as a line item on the bill.
Bulk-metered residential condominiums are eligible for treatment as residential
customers for the purpose of security deposits. In order to qualify, the
property must comply with the Condominium Act, 1998, and also be
a residential condominium corporation. Qualifying condominium corporations
must complete and return a Self-declaration
form (PDF - 425 KB).
2. Security Deposit Review
Your security deposit will now be reviewed annually to determine whether
it should be:
- Fully refunded due to good payment history;
- Partially refunded due to a reduction in electricity use;
- Increased due to an increase in electricity use;
- Remain unchanged.
3. Calculation of Security Deposit Amount
We will calculate security deposits as follows:
- If you're billed monthly, the security deposit is calculated as 2.5
times your average monthly bill during the most recent 12 months within
the past two years. If you've received two or more disconnection notices
since July 29, 2004, we'll calculate the amount of the security deposit
based on 2.5 times your highest actual or estimated bill.
- If you're billed bi-monthly or quarterly, the average bill is multiplied
by 1.75 or 1.5, respectively.
- If you have less than 12 months of service history with Hydro One,
we will base the security deposit on a reasonable estimate.
4. The Importance of a Good Payment History
We encourage customers to maintain a good payment history to avoid being
charged a security deposit. You are considered to have a good payment
history as long as you haven't had one of the following on record:
- More than one disconnection notice issued since July 29, 2004.
- More than one cheque or pre-authorized payment returned for non-sufficient
funds (NSF).
- A collection or disconnection trip has occurred.
In order for us to waive or refund a security deposit, customers must
show good payment history for the following periods of time:
- One year for residential customers and bulk-metered residential condominium
corporations that have self-declared.
- Five years for non-residential customers with less than 50 kW demand; and
- Seven years for non-residential customers with greater than 50 kW demand.
5. Criteria to waive or reduce a Security Deposit
Your security deposit amount may be waived or decreased if you provide
the following:
Residential customers (includes bulk-metered residential condominium
corporations that have self-declared):
- A reference letter that confirms good payment history from another
electric or natural gas utility in Canada where you were previously
a customer. This letter must indicate that you had a good payment
history for at least 12 months, some of this time must have occurred
within the last two years.
- You may also provide a credit check at your expense that shows you
are a good credit risk from Equifax or TransUnion.
Non-residential customers in a < 50 kW demand rate class:
- A reference letter that confirms good payment history from another
electric or natural gas utility in Canada where you were previously
a customer. This letter must indicate that you had a good payment
history for at least five years, some of which must have been within
the past two years.
- You may also provide a credit check at your expense that shows you
are a good credit risk from Equifax, TransUnion or Dun and Bradstreet.
For non-residential customer in an equal or greater than 50 kW demand
rate class:
- A reference letter that confirms good payment history from another
electric or natural gas utility in Canada where you were previously
a customer. This letter must indicate that you had a good payment
history for at least seven years, some of which must have been within
the past two years.
- You may also provide, at your expense, an acceptable credit rating
from Standard & Poor's, Moody's or Dominion Bond Rating Service,
or an acceptable credit check from Equifax, TransUnion or Dun and
Bradstreet.
- We may hold up to 50% of your deposit in perpetuity based on your
payment history.
6. Paying by Installments
You may pay a security deposit in equal installments over a six-month
period. If you would like to pay by installment please contact us.
7. Acceptable Forms of Security
You may provide the security deposit by:
- Electronic banking or cheque; or
- Deposit alternatives such as an automatically renewing irrevocable letter
of credit from a bank as defined in The Bank Act.
Exceptions/Special Circumstances
- When a security deposit has been applied or increased due to a poor
payment history, neither a satisfactory utility reference or credit
check will be accepted. Only a good payment history will allow for a
refund of the security deposit.
- If you have not maintained a good payment history with Hydro One Networks
we cannot accept another utility reference letter to waive or reduce
your security deposit amount.
- Utility reference letters are only valid for a one-year period.
8. Interest
Interest is payable quarterly on security deposits and applied to the
account. This will be paid to you starting on receipt of the total deposit.
The interest rate used is the Bank of Canada's Prime Business Rate less
2%. Interest due will be paid quarterly, or on return of the security
deposit or closure of the account, whichever comes first. Interest will
be paid by credit to your account.
9. More Information
For more information on our Security Deposit Policy, please view 'Section
2.4.3. Deposits' from our Conditions
of Service (PDF 521 KB).
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