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ECPA Review May 2015

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ECPA Review May 2015 ‐ Innovative Research Group, Inc. Toronto • Vancouver Consumer Consultation Report Energy Consumer Protection Act Review May 2015 Prepared for: Consumer Consultation Report ECPA Review May 2015 This report has been prepared by Innovative Research Group Inc. (INNOVATIVE) for the Ontario Energy Board. The conclusions drawn and opinions expressed are those of the authors. Innovative Research Group Inc. 56 The Esplanade, Suite 310 Toronto ON | M5E 1A7 Tel: 416.642.6340 Fax: 416.640.5988 www.innovativeresearch.ca Contents Introduction ................................................................................................................................................... 1 Consultation Process Overview ............................................................................................ 1 Executive Summary .............................................................................................................. 5 Exploratory Findings .................................................................................................................................. 5 How well is the ECPA working in theory? ................................................................................................... 6 How well is the ECPA working in practice? ................................................................................................. 9 Literature Review ........................................................................................................................................ 12 Implications for the ECPA Review ...................................................................................... 12 What do Consumers Need to be Protected From? ..................................................................................... 12 Bibliography ....................................................................................................................... 14 Industry Expert Interviews ......................................................................................................................... 15 Approach ........................................................................................................................... 15 Expert Feedback ................................................................................................................. 16 Market Design .......................................................................................................................................... 16 Consumer Choice ...................................................................................................................................... 16 Market Information .................................................................................................................................. 17 Stakeholder Interviews .............................................................................................................................. 18 Summary ............................................................................................................................ 18 Methodology ..................................................................................................................... 19 Stakeholder Feedback ........................................................................................................ 20 Stakeholder feedback on the consumer consultation ................................................................................ 20 What elements of the ECPA are working well? .......................................................................................... 21 What elements of the ECPA are not working well, and what can be improved? ......................................... 22 Online Workbook ....................................................................................................................................... 28 Summary ............................................................................................................................ 28 Methodology ..................................................................................................................... 29 Consumer Feedback ........................................................................................................... 31 Consumer Protection Concerns and Lessons from Other Markets .............................................................. 31 Consumer Protection Before Signing a Contract ........................................................................................ 34 Consumer Protection After Signing a Contract ........................................................................................... 41 Consumer Protection Relating to Amending, Renewing or Extending a Contract ........................................ 45 Consumer Protection Relating to Cancelling a New or Renewed Contract .................................................. 52 Government Objectives for the ECPA ........................................................................................................ 57 ECPA Review: Consumer Consultation Report Page i Prepared by Innovative Research Group Inc. May 2015 Missing Elements and Perceptions on Rules .............................................................................................. 60 Respondent Perceptions of Online Workbook .................................................................... 63 Consumer Focus Groups ............................................................................................................................ 66 Summary ............................................................................................................................ 66 Methodology ..................................................................................................................... 67 Participant Feedback .......................................................................................................... 68 Consumer Telephone Surveys .................................................................................................................. 77 Summary ............................................................................................................................ 77 Methodology ..................................................................................................................... 80 Sample Sources ........................................................................................................................................ 80 Survey Fieldwork ...................................................................................................................................... 81 Sample Design .......................................................................................................................................... 82 Questionnaire Design ............................................................................................................................... 87 Detailed Findings ............................................................................................................... 89 Consumer Satisfaction with Energy Retail Contracts .................................................................................. 89 Consumer Sales Experience ..................................................................................................................... 109 Protecting More Vulnerable Consumers .................................................................................................. 134 ECPA Review: Consumer Consultation Report Page ii Prepared by Innovative Research Group Inc. May 2015 Introduction The OEB commissioned Innovative Research Group Inc. (INNOVATIVE) in the spring of 2014 to act as an independent consultant to help design, collect feedback and document the ECPA Review consultation process among low‐volume consumers. The consumer consultation component of the ECPA Review had two key objectives: 1) Assess low‐volume consumer experiences with Ontario energy retail market, and 2) Assess how effective the ECPA has been in protecting the interests of low‐volume consumers. Consultation Process Overview One of the biggest challenges in managing a consumer engagement for the ECPA Review is the low level of knowledge the average Ontario consumer has of the energy sector (including the energy retail market). To help bridge the knowledge gap, the consumer consultation aimed to engage low‐volume consumers in a meaningful way. INNOVATIVE has successfully engaged consumers in complex policy consultations on topics such as nuclear power policy in the Alberta Nuclear Review, health policy in Saskatchewan’s Patient First Review and in numerous consumer consultations for Ontario distributor Rate Applications. Based on this experience, INNOVATIVE understands the best way to consult consumers is through an iterative, deliberative research‐based approach, integrating stakeholder and consumer feedback. This approach has three implications: 1) While consumers can credibly report on their own experience with energy markets, they generally lack the knowledge to compare Ontario to other jurisdictions or to assess the retail energy market’s performance within a broader understanding of Ontario’s energy system. Many will struggle to suggest criteria to assess the effectiveness of a consumer protection regime. However, when provided background information on the issues, consumers can offer valuable feedback on the perceived problems and solutions generated by others. 2)
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