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Retail Supplier Affiliate Agrees to $7 Million Fine

December 01,2014



Just Energy, on behalf of its former National Energy Corporation d/b/a National Home Services water heater division, agreed to a $7 million fine (all $ Canadian) under a consent agreement with the Canadian Competition Bureau prior to closing the sale of the National Home Services division to Reliance Comfort Limited Partnership

In response to the Competition Bureau's concerns regarding NHS's marketing practices, Just Energy signed a consent agreement which, among other things:

• Provides $1.5 million in restitution to be paid by National to all current National customers obtained through door-to-door marketing since July 2008 in the form of a direct credit on their water heater rental bills;

• Requires the payment of a $5 million administrative monetary penalty, and an additional $500,000 towards the Bureau’s investigative costs

The Competition Bureau said that it, "determined that sales agents for National Energy Corporation (National) were making false or misleading representations regarding their identity and the purpose of their visit to the customers’ homes," noting "thousands" of complaints it has received.

Just Energy provided the following statement concerning the consent agreement:

"Just Energy is pleased to announce that we have closed the sale of National Energy Corporation (operating as National Home Services) ('National') to Reliance Comfort Limited Partnership ('Reliance') for a purchase price of $505 million. As a condition to closing, approval to the transaction was required from the Canadian Competition Bureau. Just Energy and National determined that it was in the best interest of National to resolve the Bureau’s allegations prior to the closing of the transaction. We note that on November 6, 2014, Reliance also paid an administrative monetary penalty of $5 million and contributed $500,000 to the Bureau’s investigative costs in order to settle the abuse of dominance proceeding brought by the Canadian Competition Bureau against it prior to the closing of the transaction."



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