By: Energy Complaints | posted in Complaints, Reviews |
Date: July 25th, 2010

Amherstburg resident Pearl Gorgerat and her husband Gord want to warn area residents to be careful when they sign with energy management companies. Gorgerat estimates they lose $40-50 each month because of the contract they signed in 2004 and mistakenly renewed recently.

What is Superior Energy?

Superior Energy is natural gas and electricity supplier operating in Ontario, British Columbia and Quebec. Superior Energy offers “Price Protection Plan”, or another word a fixed-rate gas and electricity plan. It is an deregulated energy retailer, which means it can charge you whatever they want for natural gas and electricity.

What are the differences between variable rate and fixed-rate?

You can buy gas & electricity for your home or business as variable rate, fixed-rate or even prepaid.

Natural gas & electricity are commodities and their prices are dictated by supply and demand. Just like the gasoline price we use to fuel our cars.

The fixed-rate gas & electricity from Superior Energy is a gamble because no one knows if the price of natural gas or electricity will go up or down. However, the fix rate contract gives you the benefit of knowing your gas and electricity costs are set for that period. If price rise above your contract price, you benefit.

This is how you get your gas and electricity with variable rate:
[Utility supplier (variable + Regulated)] -> [You]

This is how you get your gas and electricity with fixed-rate:
[Utility supplier (variable + Regulated)] -> [Superior Energy (Fixed-rate + Deregulated)] -> [You]

Will you save money on Superior Energy fixed-rate plan?

That depends when you sign-up for a fixed-rate plan with Superior Energy. Let’s take a look at the historic price for natural gas in Ontario from 1999 to 2009 (see graph below).

According to EnergySHop.com, an independent gas and electricity comparison website says 44% of the time you will lose money by locking-in your natural gas price from 1999-2009. They explain it in this video by CBC – Marketplace, 44% will lose money by locking-in your natural gas price

If you sign-up for a fixed-rate natural gas with Superior Energy during the red area when the price of natural gas was high, you will lose money (see graph below).

On the other hand, if you sign-up to lock-in your natural gas price with Superior Energy when the price was low, you will save money. The best time to sign-up for a fixed-rate natural gas was during the green area (see graph below).

Keep in mind when you sign-up with an energy retailer like Superior Energy for a fixed-rate on your natural gas, you will have to pay a premium.

What about electricity?

If you sign-up for a fixed-rate electricity, you will lose your money 100% of the time starting from 2005. Watch this video by CBC – Marketplace, 100% will lose money by locking-in electricity price

Superior Energy door-to-door sale

Things you need to know about Superior Energy door-to-door sale

• The energy sale agents from Superior Energy are independent sale contractors
• Often, sales agents make up reasons for visiting your home – reasons that have nothing to do with saving money.
1. They are 100% commission base, no sign contract, no pay.
2. You are not in any obligation to show them anything, eg. your hydro bills or energy bills, these are your properties.
3. Energy sale people will lie by saying “Sent by the government”, “To see if you are getting your discounts”, “Your current provider is out of business”, “To save you money”, or say they are there to see if you have smart meter (Smart meters will be installed in every Ontario home eventually), or they would try to create a sense of urgency and you need to sign-up now, or they would suggest they’re with the local gas or hydro utility.
4. They often target new homeowners and suggest their energy won’t be switched on unless they agree to a contract. They can purchase information on new home owners at any real estate agency who are more than happy to sell it.
5. Energy sale agents can become pushy, they will not go unless you shut your door on them.
6. They have quota to meet.
7. Their interests are selling the fixed-rate gas and electricity contracts.
8. They don’t care about the home or business owners’ interests.
9. They have no supervisor with them, no one is watching their behavior or documenting anything they say accountable.
10. Their commission base structure promotes misleading market, deceitful sale tactics, fear tactics of high gas price and frauds.
• They will contact you after 10 days you sign the contract to re-affirm your intent to sign the contract over the phone.
• When you agree to enter the contract, you will receive a copy of the contract within 40 days.
• If you sign a contract over the internet, direct-mail, no re-affirm is required.
• When you sign-up for a fixed-rate contract, the contract is a binding legal contract, if you want to get out you will need a lawyer or read the cancellation section below this page.
• You only have 10-60 days after you sign the contract to get out without paying any penalty from a door-to-door sale. Read Here
• After 10-60 days of signing and you want to get out of the contract, you will have to pay the existing fee ask by Superior Energy. This existing fee may cost from several hundreds dollars and up to several thousands of dollars.

One final thing to know about door-to-door sale: NEVER SIGN ANYTHING at your door steps, no strangers knock on your door to save you or anybody any money. Only deal with students selling their $5 dollars chocolate.

Be very cautious when dealing with companies that don’t publish their rates on their website and never sign a contract without obtaining and comparing rates. Energy retailers that do not publish thier rates on their website are Just Energy (Formed by merger of OESC
and Universal Energy), and Summitt Energy.

Shop around before signing any long term contract

It is important to be aware that some electricity retailers are now offering rates that are based on the HOEP (Hourly Ontario Electricity Price) rate. As the name implies, this is the hourly price charged to electricity users and is extremely volatile. If you are looking for long term protection against rate increases, you much choose a supplier that offers a 5-year fixed rate. You will want to shop around to make sure that you are getting the best price available.

Introductory rates

Watch out for “introductory rates” that only apply to the first few months of your contract. Also, some contracts allow energy retailers to charge “Pool Balancing Adjustment” fees if their cost of hydro goes up. Such fees defeat the purpose of signing up for a guaranteed fixed rate.

Contract renewal or extension

If you are already sign-up with Superior Energy and the contract is expiring soon. Watch out for cheques sent out by Superior Energy. These cheque will have a fine print at the back written in black and when you cash it this will renew your gas contract with Superior Energy.

Joe Amort, president of the Windsor-Essex Better Business Bureau, said that contract renewal via cheque is a common tactic by aggressive energy marketers – and, unfortunately, it’s legally binding. Read more at www.windsorstar.com, Beware of gas brokers bearing gifts

Important Note on Cancellation

If you have been automatically renewed, you may cancel the contract within 35 days after the first bill that shows the new price.

If you agree to a renewal or extension, you have up to 14 days after you have confirmed your acceptance to change your mind and cancel the renewed or extended contract. You must give written notice of cancellation to the marketer or retailer within the 14 days.

Superior Energy in the news

In 2009, energy brokers (include Superior Energy) made it on the Top 10 list of the most consumer complaints in Ontario. The Ministry of Consumer Services received 100-150 consumer complaints about gas and electricity suppliers for the past two years. Read more: The 2009 Ontario’s top 10 list for the most consumer complaints

On December 8, 2009, the Ministry of Energy and Infrastructure from the McGuinty Government proposed new protections for gas and electricity consumers. This consumer act is called “PROPOSED ENERGY CONSUMER PROTECTION ACT( ECPA), 2009?. If the act passes, this will add new rules to protect Ontarians from gas & electricity supplier like Superior Energy and others from taking advantage of consumers. Read more: More info on the Energy Consumer Protection Act

An Amherstburg woman is warning the public: Don’t be like her. Read the fine print when you’re dealing with gas brokers. “I don’t think they’re as trustworthy as maybe they should be,” said 63-year-old Pearl Gorgerat. Read more at www.windsorstar.com, Beware of gas brokers bearing gifts

Sophie Farag, a single mother, was away from home last February when her 19-year-old son agreed to a five-year gas contract with Superior Energy Management. She called the company, only to be told she was bound by her son’s signature. Any adult can sign for the household… Read more at www.thestar.com, The ins and outs of fixed-rate gas & electricity contracts

Here’s the problem: It’s hard for you to prove what was said at the door, but easy for retailers to prove what you said on the phone (because they keep a copy of the reaffirmation call). Read more at www.thestar.com, Duped into an energy deal? Call your retailer

You sign a long-term gas and electricity contract, hoping to save money, but promised savings have not materialized. In the last two years, anyone who signed or renewed energy contracts has paid more than if they had stayed with their local utility… Read more at www.thestar.com, Cancelled contracts carry huge costs
“In January, while we were out, a saleswoman from Superior Energy arrived, implied she was from a government agency and coerced my daughter into signing forms,” he said. “She also asked my daughter to go find our gas bills. Luckily, she had no idea where to find them.” Read more at www.thestar.com, Treated unfairly? Get an explanation

If you buy electricity from an independent marketer, you may have noticed a mysterious item called “provincial benefit” on your bill. This used to be a credit. But now, it is added to the kilowatt-hour price of the electricity you use. Read more at www.thestar.com, Provincial benefit charge shocks hydro customers

Someone comes to your door, offering to keep down the cost of gas or electricity. You agree to the deal they’re offering and wait for the savings to roll in. But soon, you find you’re paying more than before… Long-term deals may mean long-term financial pain

A major makeover of B.C.’s residential gas market has been in effect for only three days, but already there have been several complaints from customers about fraudulent or aggressive business practices by new gas and electricity suppliers. Read more at www.canada.com, Customers unhappy about new gas and electricity suppliers

“I think I pulled my punches in calling for an end to auto-renewal of energy contracts last week. Today, I’ll go further. In my view, allowing an army of pushy salespeople to trick people into signing contracts adds no value. It should be outlawed in Ontario.” Read more at www.ellenroseman.com, Let’s ban door-to-door energy sales

Here is a TV broadcast on March 20, 2009 from CBC-TV exposing the standard sale tactics used by these gas & electricity suppliers. This broadcast expose Direct Energy and Universal Energy (now operating as Just Energy), but you will see and understand what these energy retailer will do to get your signature. Watch the full broadcast at www.cbc.ca, The power of high-pressure sales of gas and electricity suppliers

OEB consumer statistic issues against Superior Energy

January 1 – March 31, 2010
Superior Energy received 59 Agent Conduct Issues, 117 Contract Management Issues, 5 Customer Service Issues

October 1 – December 31, 2009
Superior Energy received 13 Agent Conduct Issues, 78 Contract Management Issues, 7 Customer Service Issues

July – September 30, 2009
Superior Energy received 7 Agent Conduct Issues, 80 Contract Management Issues, 2 Customer Service Issues

April 1 – June 30, 2009
Superior Energy received 3 Agent Conduct Issues, 23 Contract Management Issues, 2 Customer Service Issues

January 1 – March 31, 2009
Superior Energy received 4 Agent Conduct Issues, 16 Contract Management Issues, 1 Customer Service Issues

See all OEB statistics relating to electricity retailers and natural gas marketers here: Low Volume Natural Gas and Electricity Consumer Issues

The Better Business Bureau (BBB) Ratings

Superior Energy at Burnaby, BC

B- (A+ being the highest rating and F the lowest rating)
10 complaints filed against Superior Energy

Address: 155 4299 Canada Way
Burnaby, BC V5G 1H3

Website: www.superiorenergy.ca

View BBB ratings on Superior Energy, BC

Superior Energy Management at Mississauga, ON

C+ (A+ being the highest rating and F the lowest rating)
44 complaints filed against Superior Energy

Address: 6860 Century Ave EEast Tower, Suite 2001
Mississauga, ON L5N 2W5

Website: www.superiorenergy.ca

View BBB ratings on Superior Energy Management, ON

Online customer complaints against Superior Energy

“Today, it’s gotten worst. I actually got a call from a SE rep (referencing me by name) and saying that “we’re ready to turn on your Price Protection Plan, we just need to to verify some information” (probably gas account #). I asked them when did I signed up for this and he said “don’t you remember we we over the other day”. Of course I didn’t, because it didn’t happen.” Read more at www.RedFlagDeals.com

“Same thing happened to my In-Laws. Yesterday they read the small print on their Enbridge bill and realized that they were paying Superior Energy for the past year and a half. They contacted Superior Energy about the error and their rep emailed them a copy of the original agreement which contained a fake name and signature (very obvious that it was not my In-Laws).” Read more at www.RedFlagDeals.com

“Two months ago a guy from superior energy got me signed to their fixed gas price program and he lied to me about no obligation to cancel the contract. Now that I want to cancel my contract the company does not accept it and they gave me the option to pay 680.00$ cancelation fee that I’ve never been told about it. They are a complete scam. I don’t know about the similar companies but Superior energy is a big scam.” Read more at www.RedFlagDeals.com

“Currently the Ontario Energy Commission are involved, however, Sandy advised they don’t have the authority to overrule Superior Energy’s decision (to force cheated consumers into agreements). At this point I can only highly encourage others to STAY AWAY FROM SUPERIOR ENERGY. They will promise you an incentive, lock you in at a high rate, refuse to deliver the incentive and attempt to force you to pay a penalty to terminate the contract. Absolutely disgusting.” Read more at www.RedFlagDeals.com

“I’ve had these gas guys come to my door. Really pissed me off. Kept wanting to see my bill, and I refused to show them. It was an azn fellow, and he had filled out all my information and was trying to get me to sign.”

“Now I keep getting a call from this place saying that I’ve won a prize. However each time the prize value changes. They will call me telling me I won a prize worth 2000 dollars(actually they say my mom did so they are picking on women cause they called also for my grandma at her house), then the next time they call me they tell me worth up to 2000 dollars.” Read more at www.RedFlagDeals.com

“Ontario Energy Savings AND Superior Energy retailers stealing money from the most vulnerable groups of population Mississauga Ontario….”Ontario Energy Savings AND Superior Energy

File your complaint here

If you believe you have been subjected to deceptive business practices by Superior Energy, please contact Ontario Energy Board and file a complaint. File an online complaint against Superior Energy at www.oeb.gov.on.ca, OEB Consumer Online Enquiry and Complaint Form

How to cancel Superior Energy contract

Superior Energy cancelation fee can cost anywhere from $600 dollars and more, but there is a way out without paying them anymore money.

If you sign-up with Superior Energy fixed-rate natural gas or electricity contract and it had pass the 10 days cool off period. This is how your get out the contract without paying hundreds of dollars to Superior Energy.

If you “move” (Put the bill into someone else’s name) you get out with NO PENALTIES.

1. Call the utility (NOT Superior Energy). Have them change the name on your account, preferably to a person’s name who does NOT share your last name. A friend or family member is probably your best bet. Your reason for the change could be as simple as you’re renting your home and the new name is your tenant. Changing the name on the account usually costs $30 or so.
2. Next step, if Superior Energy call. You tell them you no longer responsible for the utility at that location. You are now renting the home. After that, wait about 6 – 12 months and then you may switch the utility back to your name.

How to avoid gas & electricity scam

1. Don’t sign up for any offer on the spot. You may be charged a hefty termination fee if you later want out.
2. Don’t give out your utility account number to any sales representative at your door or over the phone.
3. Don’t sign up for a new gas and electricity supplier until you compare the prices and terms of service with other companies, including your utility.
4. If you’re not interested in switching your gas and electricity suppliers, ask your gas and electricity provider to put a block on your account, which will prohibit any unauthorized changes to your service.
5. If you don’t want deregulated gas and electricity providers to bother you with a sales pitch, get on your utility’s do-not-market list.

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