A billing error means Greater Sudbury Hydro Inc. will have to refund its customers approximately $919,000 via on-bill credits issued within the next 90 days.
“We apologize for this error,” utility spokesperson Wendy Watson said. “No one wants to make a mistake. We truly value our customers, we know that they place faith in us to get it right.”
The billing error was discovered on March 3, 2021, and was promptly reported to the Ontario Energy Board, the province’s independent energy regulator. New rates were already going into play on May 1, at which time Watson said the necessary changes to correct the error were made.
“It was cleaner to make that change on May 1 when other changes in the system were going to be made,” she said, clarifying that this also allowed them enough time to find the solution.
The mistake was in the way the billing system was prorating approved fixed charges, with a mixup in calculations erroneously factoring in 360 days per year.
The impact varies by customer class, but the 2020 impact to a residential customer equated an overcharge of $5.09.
The error in calculation appears to have been historic and dates back as far back as 2005, Watson said, adding that it was only discovered because staff were reviewing the organization’s 2020 financial performance.
After self-reporting the error, Greater Sudbury Hydro has agreed to an assurance of voluntary compliance issued by the Ontario Energy Board, which is a binding commitment to rectify or prevent non-compliance. In addition to crediting customers, Greater Sudbury Hydro will pay an administrative penalty of $5,000.
Although the calculation error dates back further, the Ontario Energy Board ordered Greater Sudbury Hydro to refund customers’ bills to accommodate for the past four years.
All current customers will receive a one-time on-bill credit within the next 90 days regardless of when they joined the utility. Included with their bill will be an explanation for the credit in a form approved by the Ontario Energy Board.
The amount credited will vary depending on customer class, but residential customers can expect a credit of $17.61.
As for the organization’s $919,000 hit as a result of complying with the regulator’s decision, Watson said they began accounting for an impact last year when the error was discovered.
“We will absorb this within our regular operations,” she said. “If that means we have to tighten our belts in certain areas, we’ll find those additional efficiencies, but we’re quite confident customers will not notice any difference.”
Tyler Clarke covers city hall and political affairs for Sudbury.com.
