Commercial Security Deposit Requirements
Call our office for details at 661-5503Overview
A Security Deposit/Prudential Policy for Residential, General Service, Interval Metering and Retailer customers, owners and tenants alike, is required to ensure London Hydro's receivables are secured and to protect against the risk of payment default.
London Hydro's credit policy has been developed in compliance with the Ontario Energy Board's rules and codes, especially with the Retail Settlement and Distribution System Codes that became effective on February 3, 2004. Full payment of the security deposit is required as a condition of service.
Deposit Required
This policy is required to protect London Hydro's receivables by obtaining security deposits which provides a guarantee where customer/retailer risk of default is evident, and when customers/retailers end their contract with us.
Security Deposits will be collected and held for the purpose of being applied to the final utility bill.
Exceptions
Some exceptions may apply for customers that qualify by meeting specific criteria. For details on exemptions please contact Customer Services at (519) 661-5503.
Calculation of Security Deposit
Deposits are calculated at an average monthly load over the most recent 12 month period prorated for 2.5 months (75 days).
Methods of Security Deposits
As a general service customer, you can make your deposit payment with:
- Cash or cheque (with interest paid to you annually)
- Letter of Credit from an acceptable Financial Institution
- Surety Bonds from a Bank as defined in the Bank Act, (Canada)
Deposit Return Policy (Effective February 1, 2005)
All security requirements will be reviewed no less than annually. Cheques will only be issued after a final bill has been issued and paid. All other security adjustments including refunds due to Good Payment History will appear on the customer's next bill.
Interest on Cash Deposits
Interest shall accrue monthly on security deposits made by way of cash or cheque commencing on receipt of the total deposit required by London Hydro. The interest rate shall be at the Prime Business Rate as published on the Bank of Canada website less 2 per cent, updated quarterly. The interest accrued to December 31 of each year shall be applied to the deposit principal and reported on the customer's first bill of each calendar year. Deposit interest is calculated and applied to the customer's account on return of the security deposit or closure of the account, whichever comes first. A cheque will be issued only to those customers no longer in the London Hydro service area and whose final bill has been rendered and paid.
Questions/Need Assistance?
If you have any questions, or would like to know in advance what the amount of your security deposit will be, please call our Customer Services Department at (519) 661-5503.
