When bills go unpaid, it affects our entire customer base. To avoid this, we may require a deposit. After an application for service is completed, EPCOR will check the customer's credit and will either waive or determine the required amount for the Security Deposit. The Security Deposit must to be paid before connection can occur.
How we calculate deposits
Residential deposits are determined by calculating the average consumption at the location over the last 12 consecutive months at the current rates and multiplied by the billing cycle factor of 2.5.
Commercial and Industrial deposits
Deposits are determined by calculating the average monthly consumption at the location over the last 12 consecutive months. If no history is available, the deposit amount will be based on forecasted consumption information. The consumption is multiplied by a maximum billing cycle factor of 2.5.
Interest on security deposits
Interest accrued on security deposits will be paid out annually. The interest rate shall be the Prime Business Rate published on the Bank of Canada Website less 2%, updated quarterly. For any quarter that the Prime Business Rate is 2 percent or less the interest rate paid on security deposits will be 0.
Getting your deposit back
An excellent history of on-time payment will reduce the length of time that a security is held; resulting in a refund of the deposit.
Annual reviews are conducted on all accounts to determine if you are entitled to a refund, or if an adjustment is required. Requests for deposit refunds can be made, in writing to the credit department, after 1 year of service for residential customers, after 5 years for non-residential customers that consume no more than 100,000m3 of gas annually, and 7 years for all other customers.
When a customer discontinues natural gas service, after the final billing period has been processed, and the account is settled in full, the security deposit will be refunded. If the account is not settled in full prior to a request for refund, the security deposit will be applied to unpaid balance and any remaining security deposit will be refunded.
Where all or part of a security deposit has been paid by a third party on behalf of a customer, EPCOR is obligated to return the security deposit, including interest where applicable, to the third party. This applies to all or part of the security deposit as paid by the third party where the third party has requested, at the time the security deposit was paid or within a reasonable time thereafter, that it be returned to the third party rather than the customer. Prior to refund, the security deposit will be applied to any overdue amounts as permitted.
Transferring deposits when you move
If you move to another location where natural gas service is provided by EPCOR your security deposit is reviewed, and may increase or decrease depending on the consumption of the new location and past payment history on your account.
Ways to reduce your deposit or have it waived
A deposit may be waived if a customer has a satisfactory credit check or if a letter from another gas/electricity distributor in Canada is provided that confirms good payment history.
In lieu of a deposit, Commercial or Industrial customers may provide an irrevocable letter of guarantee from a financial institution, or a personal guarantee from the owners may also be accepted in some circumstances.