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Townsite residents question gas-sale tactics

Third party natural gas marketers bring fixed-rate contracts to Powell River
gas marketers
TOWNSITE WATCH: Maple Avenue resident Will Van Delft is concerned about the sales tactics of natural gas marketers in Powell River after being approached by one on BC Day. Chris Bolster photo

One of BC’s private natural gas marketers says it will be reviewing fixed-rate contracts sold last week in Powell River and asking sales reps to present themselves in a more professional manner.

City residents recently raised concerns about door-to-door gas salespeople in Townsite, particularly on Maple Avenue.

Access Gas Services, one of seven private marketers in the province, had sales representatives selling its five-year, fixed-rate contracts in Powell River last week, according to company vice-president Tom Dixon.

“We will be reviewing contracts executed on Maple Avenue and discussing the matter in detail with the representatives involved,” said Dixon.

Maple Avenue resident Will Van Delft said he was already familiar with the sales pitch when the Access Gas salesperson knocked on his door the evening of Monday, August 1.

“We had experience with natural-gas reselling contractors in the Kootenays when we lived there, so we already knew what it was all about,” said Van Delft.

But Van Delft said many of his neighbours, including senior citizens in their 80s, were confused by the encounter.

The Access Gas sales representative showed up at the door wearing a high-visibility vest, jeans and a t-shirt, looking more like a utilities worker than sales rep, he said.

Van Delft described his sales pitch as “forceful” and was not able to ascertain what company the representative worked for at the time.

“He said he was from Fortis, but he was not,” added Van Delft.

Access Gas will be taking its sales reps aside to reiterate the need to spend the time to explain better what they are selling and to be clear to not misrepresent the company, said Dixon.

“I will acknowledge that salespeople, at Access Gas and in general, are fast-talking and eager to make a sale,” he said.
Dixon said the company does encourage its sales staff to wear bright, visible clothing to make them more visible to drivers as they walk through neighbourhoods. “We want them to stay safe,” he said.

Third-party, fixed-rate gas contracts have been permitted in the province by the BC Utilities Commission (BCUC) since 2007, but only since last August in Powell River.

Gas prices quoted by marketers are not regulated by BCUC, but BCUC is responsible for licensing gas marketing companies and ensuring they adhere to a code of conduct.

“Gas marketers are not allowed to represent themselves as being from Fortis,” said BCUC spokesperson Alison Thorson. “That, right away, raises a red flag.”

Companies are required to follow a code of conduct and sales representatives are required to clearly identify themselves and the company they work for, according to the BCUC.

Fortis BC corporate communications advisor Michael Allison said the company does not sell door to door. He advises current customers to educate themselves on the fixed-rate contracts before signing anything. He added that information is available on the company’s website under the section “customer choice.”

“We provide our customers information so they are able to make the best choice possible,” said Allison. “We do say that if someone comes to your door, ask for identification and take a good look at the contract.”

FortisBC also advises people to ask marketers questions about terms of the contract, the price of natural gas throughout the duration of the contract and what happens if a customer moves.
“If people have a problem, it is important they contact the BCUC,” said Allison.

Dixon said his company makes an effort to ensure customers understand the contract and double check with them after signing with a follow-up questionnaire. Customers have 10 days after signing to cancel contracts without penalty.

Residential natural gas prices in BC have dropped steadily since 2008 when they reached a high at $10 per gigajoule (GJ). According to information on FortisBC’s website, as of August 1, the current variable rate for residential natural gas was $1.141/GJ, while the five-year term rate at Access Gas was $5.89/GJ.

Maple Avenue resident Ching Ho said she felt the sales representatives were being “tricky” and seniors may not fully understand what they are signing up for.

“This is something we need to be concerned about. We have a lot of seniors living here,” said Ho. “They may not really know and when they get their bill it may cause some shock.”