Alberta charges Direct Energy with failing to cancel contract, give refund

EDMONTON – Direct Energy Marketing Ltd. has been charged under Alberta’s consumer protection legislation.

Service Alberta began an investigation after receiving two separate complaints.

The Alberta government alleges Direct Energy enrolled a consumer with an energy contract in February, even after the consumer complains a request was made to cancel the contract within the legislated 10-day “cooling-off” period.

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In October 2014, the government alleges Direct Energy failed to provide a refund within the legislated period of time after a contract to supply a furnace to a home was cancelled at the request of the homeowner.

Direct Energy is also charged with failing to refund a deposit within 15 days after cancellation and for using a contract that does not contain all the prescribed clauses required within the contract.

Penalties under the Fair Trading Act include a maximum fine of $300,000 or three times the amount obtained in the offence, whichever is greater, and up to two years in jail.