Residential Security Deposit Requirements
As a condition of service, all new London Hydro residential accounts are required to provide a Security Deposit. Your deposit for residential service will be assessed on your first bill. The deposit will cover the utilities you are billed for by London Hydro, including electricity and, if applicable, water.
Methods of Security Deposit
You have two options regarding how you can make your deposit payment.
- Cash or cheque (with interest credited to your London Hydro account annually)
Exemptions From Security Deposit
All new customers who have a continuous one year (12 month) Good Payment History (one year Good Payment History had to occur within the last 24 months) with either London Hydro, another Local Distribution Company or Gas Utility in Canada . To maintain exemption status your account must remain in "good standing".
All new customers, at the customer's expense, may provide an external credit check from a credit bureau that demonstrates they are a good credit risk.
Calculation of Security Deposit
Deposits for monthly billed customers are based on 2.5 times the average monthly bill.
A security deposit may also be assessed when a customer demonstrates a poor payment history.
Residential Security Deposit Fees
- Residential - initial deposit of $180.00
- All Electric (heat and electric) - initial deposit of $280.00
- Water $100.00 (in addition to electric account)
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 Security Deposits Paid By Cash Or Cheque
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.
