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Compliance Office
This overview has been prepared to assist stakeholders and the public in understanding the role of the OEB’s Compliance Office, as well as its processes.
- Would you like to raise an issue, seek guidance regarding compliance with a legal or regulatory obligation, or learn more about OEB’s Issues Management process? Click here.
- Are you a consumer who would like to raise an issue about your energy supplier? Click here.
- Would you like to learn more about the OEB’s Compliance Management process? Click here.
- Are you a stakeholder who would like to forward an allegation of non-compliance by a regulated company? Please e-mail the details to the following address market.operations@oeb.gov.on.ca
Protecting customers and promoting confidence in Ontario's energy sector
Public confidence in Ontario’s energy sector is essential to the well being of consumers and all energy stakeholders. Compliance by all licensees and gas utilities, (also known as regulated companies), with the Ontario Energy Board Act, 1998, the Electricity Act, 1998, associated regulations made under those Acts, OEB orders, licences, codes applicable to electricity licensees, and rules applicable to companies in the natural gas sector is fundamental to achieving this public confidence.
The OEB’s compliance program is the cornerstone of the OEB’s role to protect consumers and promote regulatory certainty for companies that are regulated by the OEB. Compliance is not a new role for the OEB. The creation of the Compliance Office will however, help focus the process by having resources that are dedicated to compliance monitoring, enforcement and compliance-related stakeholder education. The Compliance Office’s goal is to ensure effective compliance monitoring and enforcement through processes that are transparent, efficient and fair.
The Compliance Office
Headed by the Chief Compliance Officer (“CCO”), the Office’s principal role is to understand, review and respond to any allegation or concern that a regulated company is not meeting its legal or regulatory obligations. (For more on the responsibilities of the CCO, click here.) The Compliance Office will also be proactive in both providing guidance to regulated companies and in monitoring compliance with legal and regulatory obligations.
The Compliance Office’s three main functions are:
- Issues Management – Responding to those marketplace and industry issues that are not compliance matters but where regulated companies and other stakeholders require an understanding or clarification of the OEB’s regulatory requirements. Also, to facilitate a resolution in the absence of a specific legal or regulatory requirement;
- Consumer Dispute Resolution - Assisting the OEB’s Consumer Relations Centre in dealing with customer inquiries and disputes; and
- Compliance Management - Reviewing concerns or allegations of non-compliance and taking timely and efficient action to resolve the matter.
Issues Management
The Compliance Office promotes education and understanding to help prevent regulated companies from unknowingly failing to meet their obligations. Issues Management involves several different functions.
The first is to act as the primary point of contact for regulated companies and other stakeholders that wish to raise issues, or concerns or to request clarification or guidance on compliance with legal and regulatory documents. We have established the Market Participant hotline and e-mail which licensees, gas utilities and other stakeholders can use to submit any questions or issues they may have for the OEB. To ensure the OEB provides timely service, we have committed to responding to these enquiries within 5 business days.
The second function is to provide guidance and assistance in resolving issues that affect the efficient regulation of energy markets. The third function is to act as a facilitator in the implementation of new legal or regulatory requirements.
If you would like to raise an issue or concern, or seek guidance regarding compliance with a legal or regulatory obligation, please use our Market Participant hotline at (416) 440-7604 or e-mail us at market.operations@oeb.gov.on.ca.
Consumer Dispute Resolution
If you are having a problem with your energy supplier, the Ontario Energy Board wants to help you through the complaint process and to have the problem addressed as quickly as possible. Your first step should be to attempt to resolve the matter directly with the company involved. If you are unsuccessful resolving the issue yourself, you can file a complaint with the Consumer Relations Centre, noting all of the important details via e-mail at complaints@oeb.gov.on.ca
Some of the complaints that the Compliance Office receives do not involve a breach of a legal or regulatory obligation. However, the matter may have a significant impact on the complainant or the integrity of the marketplace. As a result, Compliance staff may attempt to facilitate resolution of the matter, by explaining to the complainant the specifics of any related regulatory obligation, and providing feedback to the regulated company outlining the Compliance Office’s concerns and preferred solution.
For other ways to contact us click here.
Compliance Management
Compliance management involves the assessment, review and appropriate resolution of compliance matters, including responding to specific allegations of non-compliance.
A high level overview of the Compliance Management process is as follows:
Once an issue of non-compliance arises, the Compliance Office will begin a thorough examination of the matter and seek a fair resolution; the majority of cases are resolved in less than 180 days.
1. Information Gathering - The Compliance Office receives information from a variety of sources such as complaints from consumers and other stakeholders, filings by regulated companies, and submissions to the Market Participant hotline or e-mail.
2. Initial Review – Compliance staff will complete an initial assessment of the facts received. This review may result in classifying the matter in one of the following ways:
- Consumer Dispute – Compliance staff will notify the customer that there is no issue of non-compliance and may attempt to facilitate an appropriate resolution.
- Market Issue - Compliance staff will either respond to the matter or forward the issue to the relevant OEB department for further consideration.
- Compliance Issue – Compliance staff will complete the steps below to fairly and efficiently assess whether there is non-compliance and whether enforcement action is appropriate.
3. Review and Assessment – Compliance staff will review the facts on hand, and if necessary seek additional information from the complainant, in order to determine if there is evidence of non-compliance. Where there is no evidence of non-compliance, the complainant will be informed that no further action will be taken by the Compliance Office. Depending on the nature of the complaint, this review and determination will not necessarily be shared with the regulated company that is subject of the complaint. Complainants that disagree with the CCO’s decision, that no further compliance action will be taken, may dispute the finding and the CCO will report this to a panel of the Board.
If Compliance staff determines that there is evidence of non-compliance, the licensee or gas utility will be presented with the details of the complaint or issue. The regulated company will be asked to provide an initial response, including any background that may be relevant to the matter.
Compliance staff will review the regulated company’s response, information provided by the complainant and any relevant legal or regulatory obligations. Staff may request further information, and/or meet individually or together with all parties to ensure a full understanding of each position. The practices of other regulated companies, and any precedents may also be considered where relevant. Depending on the nature of the concern, the CCO may also initiate a formal investigation of the licensee’s or gas utility’s business practices, including a review or audit of relevant business records.
This review and assessment stage may be completed quickly, or may require further in-depth assessment and is expected to be the lengthiest stage of the compliance process. Regulated companies can expect that every effort will be made to ensure that the process is transparent, fair and efficient.
At any time during the review and assessment stage, the Compliance Office may determine that the matter is not a compliance issue but is more accurately described as a market issue or a consumer dispute. The CCO will notify the complainant (if any) and the regulated company, and the compliance file will be closed. The issue will then be moved out of compliance management and referred to the appropriate process for resolution. Complainants that disagree with the CCO’s decision, that the issue is not a compliance matter, may dispute the finding and the CCO will report this to a panel of the Board.
4. CCO Determination – Determinations on compliance issues are made by the CCO, who will decide whether there has been non-compliance and, if so, whether enforcement action is appropriate in any given case. It is important to clarify that no statutory power of decision has been delegated to the CCO. As part of the CCO’s duties, the CCO makes administrative decisions as to whether or not to pursue informal enforcement and whether or not to recommend that the Board take formal enforcement action under Part VII.1 of the Ontario Energy Board Act, 1998. (For more on the responsibilities of the CCO, click here.)
5. Enforcement – Where the CCO determines that a regulated company is not in compliance with its legal and regulatory obligations; there are two categories of enforcement action that may be pursued.
- Informal Enforcement – Compliance staff will work with the parties involved to achieve a fair and appropriate resolution to the matter. Any resolution will be documented as the regulated company’s plan to become compliant. This “compliance plan” will be monitored by Compliance staff and when the requirements of the plan have been fully satisfied the associated compliance file will be closed. Compliance matters that are resolved through this informal enforcement mechanism will be reported to a panel of the Board.
- Formal Enforcement – In some cases, the CCO may recommend that the Board take formal enforcement action under Part VII.1 of the Ontario Energy Board Act, 1998. This recommendation may be appropriate in cases where, for example, no acceptable “compliance plan” is provided or agreed upon, or where the non-compliance at issue appears to be systemic or material. A recommendation that formal enforcement action be taken by the Board is made by the CCO to a panel of the Board in the form of a request that the Board issue a “Notice of Intention to Make a Compliance Order” to the licensee or gas utility under section 112.2 of the Ontario Energy Board Act, 1998. The Notice would contain an explanation of the finding of non-compliance and the proposed enforcement action.
Under Part VII.1 of the Ontario Energy Board Act, 1998, the enforcement actions that the Board may take are:
- Impose penalties of up to $20,000 a day;
- Issue orders requiring compliance and/or requiring the regulated company to remedy the non-compliance;
- Suspend or revoke licenses; and
In response to this Notice, the licensee or gas utility may request a hearing before the Board. During this hearing the CCO will present the evidence gathered in support of the finding of non-compliance. The regulated company will have an opportunity to provide evidence to respond to the CCO’s determination of non-compliance. The Board will then decide on any appropriate enforcement action.
It is our goal to work cooperatively with regulated companies to create a culture of compliance and to monitor and enforce compliance with applicable legislation, regulation, licences, codes, rules and orders in a timely, transparent and efficient manner.
Industry Concerns
If you are a licensee, gas utility or other stakeholder and would like to raise an issue or concern, seek guidance regarding compliance with a legal or regulatory obligation, or forward an allegation of non-compliance, please use our Market Participant Hotline at (416) 440-7604 or e-mail us market.operations@oeb.gov.on.ca
Consumer Concerns
If you are having a problem with your energy supplier, the Ontario Energy Board wants to help you through the complaint process and to have the problem addressed as quickly as possible. Your first step should be to attempt to resolve the matter directly with the company involved. If you are unsuccessful resolving the issue yourself, you can file a complaint with the Consumer Relations Centre, noting all of the important details by e-mail, fax or phone. Contact Us.