Scam, Gamble or a Good Deal? Just Energy Manitoba

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Scam, Gamble or a Good Deal? Just Energy Manitoba (formerly known as Energy Savings or Direct Energy Manitoba) 

Update: May 2016 - The Winnipeg Just Energy office location is up for lease. 

WARNING - Manitobans warned about door-to-door natural gas salespeople -  http://www.winnipegfreepress.com/local/Public-regulator--266246971.html (July 8, 2014)

I have some important things for you to know and/or consider about Just Energy. This is especially important for people who live in Winnipeg, Mantoba.  If you are a NEW customer or an EXISTING customer, you will find this information important to you.  Even if you are NOT a customer, you will find tonnes of information and helpful advice that I believe will save you a lot of grief and dissatisfaction in the long-run.  Sit back, relax and take it all in (or come back to it when you have time!).

If you are unaware of Just Energy, here's a link to an article from Global News, Saskatoon (July 5, 2012): Just Energy Sales Practices Causing Complaints (Global News, Saskatoon) http://globalnews.ca/news/263258/just-energy-sales-practices-causing-complaints-2/ 

Here's an AMERICAN video to get you orientated to some of the controversy that surrounds this topic: Just Energy Confused Consumers Take Dangerous Gas Gamble:

Click on the arrow above, or go to this link:  http://youtu.be/TK6RollB2sQ.

My Story:

In Winnipeg Manitoba, a woman (with first but no last name provided) from Just Energy came to the door of a older woman I know, and she was asking her to sign a contract promising her that she would get fixed prices on her Natural Gas and that she would not have to experience any price increases, saving her money in the end.   This older woman, who is wise, declined to sign anything at that moment, but did take a business card and showed it to me.  I was relieved to know that no contract was signed, as I had experience with this and it did not end in our favour. 

In July of 2005, a man named David from Energy Savings came to our door, and he spoke with my husband.  He convinced my husband that signing a five-year contract with him was going to protect us from further Natural Gas increases.  We were rest assured that the Primary Gas fixed price of 38.3 cents per m3 was a great deal.  All the other people on the street had signed up apparently, and we were protected if there happened to be a natural disaster that would hike up natural gas prices. 

Being budget-conscious at the time, my husband started watching the price of natural gas in Winnipeg.  The price of natural gas started falling.  Here we were, locked into a 38.3 price point, while the actual price was declining.  When I review the history, on the Historical Natural Gas Rate Changes- Residential, it appears that the price never went over 38.3. In fact, it started at .3207(32.07) and kept falling to .1344(13.44) in November 2011. 

 We were paying 286% more than what Manitoba Hydro was charging it's customers!!  
That's almost three times what Manitoba Hydro rates were.

We paid a lot more money over the years than we should have. We estimate we had paid between $2,500.00 - $3,000.00 more over those five years.  It was a gamble we took, at the advice of the Agent, who reassured us that we'd save a lot of money because of the "rising" Natural Gas prices.

I feel this was not a scam, as they are a legitimate business and they are also taking a risk.  What if the Natural Gas prices did go up?  Then they would be losing.  What if there was a warm winter? In fact, there was an article in the Winnipeg Free Press, stating just that: Just Energy swings to $76.9M loss in Q4; revenue falls $120M to $820.4 million (Winnipeg Free Press, May 17, 2012) which is no longer available online, but a summary can be found here: http://ca.vlex.com/vid/just-swings-to-loss-revenue-falls-4-421354022

In October 2011, my husband and I had decided that we were not going to renew our contract.  Sure enough, another Agent (Independent Contractor) came to the door, encouraging us to renew our contract, this time at a lower rate.  We had been burned before, so we declined.  It was the best decision we made because gas prices have continued to decline.  As of May 2012, the rate was at 0.08800 (8.8).

Why I wrote about this:  

I am writing this article to share with you my personal experience, and to give you some insight into this potentially risky situation.  It's certainly a gamble, for both you as a customer and for the company, to lock in your Natural Gas prices at a fixed rate.  For me, and many others I know, it's a gamble we took and lost. 

Do a "Google" search on "Just Energy" and apart from any company-driven literature (their official website can be found at www.justenergy.com) you will see negative comments about people's experiences with this company.  Just Energy operates in Canada and the United States (and now UK).  I noticed in the Mission, Vision and Values statement of Just Energy, there was not one word about saving customers' money.  Their Vision Statement is: "To revolutionize how our customers use energy."  An article I found in the Financial Post dated July 17, 2012 reveals that their "shares plummet":
http://business.financialpost.com/2012/07/18/just-energy-shares-plummet-on-analyst-criticism/?__lsa=5b762f7f.  If you are an investor with Just Energy, you may be disturbed by that information.  In fact, the only people who seem to be really benefiting from Just Energy are the people who work for and invest with them.

If you are NOT a customer of Just Energy (or Energy Savings):

If you are ever approached by a Just Energy Independent Contractor at your door, please do not sign the contract without doing your research first.  Do not give them a copy of your existing energy bill, unless you are 100% sure that you want them to be your Natural Gas supplier.  They will ask to see your current bill so that they can get current personal information, your account number, and any other information they need to secure your contract.

Do your research first before signing.

If you are a NEW customer of Just Energy (within 10 days of signing a contract):

So, you have just signed a contract with Just Energy.  You have 10 days after signing to cancel your contract.  Do your homework.  Research the company, talk to friends and neighbours.  If you are convinced that gas prices are not going to increase, deliver your intention to cancel the contract in writing to the office at 104 Scurfield Boulevard, in Fort Garry, Winnipeg.

Just Energy, 104 Scurfield Blvd, Winnipeg

If you decide to stay with the company, watch the gas prices to see if you made a good decision or not.  Save your original documents and anything that comes in the mail associated with Just Energy for future reference.

If you are an EXISTING customer of Just Energy (more than 10 days after signing):

Note:  In 2009 Energy Savings Manitoba Corp. changed their name to Just Energy Manitoba.

Look closely at your gas bill.  Most of us are guilty of not checking it.

Refer back to your original Just Energy Contract (hopefully you have kept this information - if not, keep reading).  Check to see what the fixed price was that you agreed to.  Compare this to the current price of Primary Gas as per Manitoba Hydro.  You can alternatively call Manitoba Hydro at 204-480-5900 or go to this contacts webpage at http://www.hydro.mb.ca/contact.shtml to see if they can tell you how much more you are paying for your Natural Gas. (Please have your Manitoba Hydro account number, service address, and your home or primary phone number available when calling or emailing.)  Are you paying more or less?  If you are paying more (and I almost guarantee you are), check to see when your contract ends.  When the Independent Contractor comes to your door to renew, you will be better informed.  You will be offered a much lower rate this time around.  Will you take a gamble again?  The choice is up to you. 

Call Manitoba Hydro at 204-480-5900

If you don't have a copy of your original contract, you can call Just Energy to find out what your rate is, by calling Just Energy customer service, at 1-866-587-8674.  Press 1 for Canada, and then follow the prompts.  You need your account number with you.  

Call Just Energy at 1-866-587-8674

If you are a DISSATISFIED customer of Just Energy:

Call Just Energy at 1-866-587-8674. (Consider this:  Reduced Rate Just a Phone Call Away  http://calgary.ctvnews.ca/reduced-rate-just-a-phone-call-away-1.611030).  If you are still not satisfied, file a complaint with the Better Business Bureau at https://www.bbb.org/consumer-complaints/file-a-complaint/get-started.  Currently, Just Energy is NOT Better Business Bureau accredited and there is no Winnipeg specific BBB account.  Here is the link to the Mississauga, Ontario Just Energy information that I was directed to.  There is information on Overview, Complaints, and Directions.  At time of writing this article, it was given an A- grade. (edit:  As of 05 NOV 2014, it was given a F grade and there is an alert for this business.)
http://www.bbb.org/kitchener/business-reviews/natural-gas-companies/just-energy-in-mississauga-on-17632

Complaints breakdown:  http://www.bbb.org/kitchener/business-reviews/natural-gas-companies/just-energy-in-mississauga-on-17632/complaints#breakdown

Helpful Links, Tips and Other Information:

1.  Manitoba Hydro Historical Natural Gas Rate Changes - Residential.  http://www.hydro.mb.ca/regulatory_affairs/energy_rates/natural_gas/residential.html

Look at the Primary Gas Supply agreed upon price on your Just Energy contract.  Then look at the Primary Gas Billed amount in the first line of the above-noted table.  For example, for May 2012, the rate with Manitoba Hydro, Natural Gas is $0.0880/m3.  If you are paying anything over that, you are paying too much.  You can figure out your history by checking your Hydro Manitoba Gas bill.

As of January 26, 2012 Just Energy can charge $0.15.9/m3 as per the following document, regulated by the Public Utilities Board.

2.   Public Utilities Board Manitoba - Primary Gas Rates. 
http://www.pub.gov.mb.ca/e_savings.html.  This is how much Just Energy can charge it's customers.  Board approved quarterly rates, and Fixed-Price Fixed -Term Contracts.

3.  Manitoba Hydro Equal Payment Plan (EPP) Option:  One of the reasons why people decide to sign up with Just Energy is because they want to be on a budget and pay equal monthly installments.  So they will not have fluctuating energy bills or big surprises.  Manitoba Hydro offers an Equal Payment Plan (EPP) option, and it's available by calling 204-480-5900 or online here:  http://www.hydro.mb.ca/customer_services/payment_options/equal_payment_plan.shtml

4.  Current Primary Gas Rates with Manitoba Hydro:  Check your Primary Gas Rate according to your Manitoba Hydro bill.  Mine is delivered by www.epost.ca.   The cost of Primary Gas is found on page 2 under "Natural gas - Residential"; Primary Gas (Centra).  It will show a % multiplied by a M3 and that will give you your rate.  For my July 2012 statement it was $0.08800. 

5.   I've been mugged - Just Energy:   A good deal?  A popular online article, with a lot of comments.  Based out of the US, but interesting, nonetheless.  

http://ivebeenmugged.typepad.com/my_weblog/2010/05/just-energy.html (May 11, 2010)

6.  Choosing is a Gas!  Locking into a fixed price is no sure thing.  Winnipeg Free Press article:  http://www.winnipegfreepress.com/business/finance/choosing-is-a-gas-42072217.html (March 29, 2009)

7.  Conservation Tips:  The only helpful thing I can find from Just Energy is this page on "Conservation Tips", found here: http://www2.justenergy.com/green_energy_tip.html

8.  Just Energy…isn't:  17 Documented lies in one visit:
http://kevinjamesfield.blogspot.ca/2012/05/just-energyisnt-17-documented-lies-in.html (Kevin Field, Waterloo, Ontario.  May 14, 2012.)

9.  Here are some quotes I found on the internet, in various social networking sites, forums and message boards:

"I think people are objecting to the misrepresentation that seems to be quite common in that industry. Tactics like "oh I just want to verify that you're getting the proper price; please show me your bill" so they can copy down the account number and slam you. Their salespeople are even signing people up using forged signatures."

"They are same bunch of greedy people trying to hunt innocent people" (in response to them changing their business name).

"Also warn your neighbors, especially elderly, because these crooks canvas entire neighborhoods at once, and love to prey on the elderly and uninformed."

"Sign up with us, and you’ll never receive any information letting you know if you are actually saving money, or even breaking even."

"My parents have been paying there gas bill with a supplier( JUST ENERGY) since 2003 .  I've investigated they are paying 39.7000 cents cubic metre  when the gas company is charging 8 cents a cubic metre.  They paid $90. more than they had to in just one month. No one needs a supplier. I am going to do everything in my power to get this company charged for taking advantage of these poor seniors." (April 4, 2012, Hamilton Canada)

"… it's a scam, they charge people a minimum of three times what the gas companies charge. sometimes they will just take your account number of your bill and sign you up without telling you until you get a letter from the gas company. always research before signing! "( April 27, 2012, Buffalo, NY)

"I worked for Just Energy (formerly known as US Energy Savings)for well over 5 years and it is definitely not a scam - it is your choice if you would like to participate in a 5 year fixed rate (per therm for natural gas or per kilowatt hour for electricity) contract. You will still keep your utility company and should still receive only 1 bill. You will definitely pay more initially as you almost always sign up at a higher price than the current rate. The program works well if prices rise (like incidents of hurricane Katrina) but you will not likely see a savings unless prices steadily increase over the next 5 years. Some of my family are still on this program and Just Energy will allow you to get a price reduction if market conditions bring down the commodity price." (June 13,  2012, Joe, Schererville, IN)

10.  If you prefer to watch videos, try these (although American, I feel they have some merit for us here in Canada):

Just Energy Confused Consumers Take Dangerous Gas Gamble YouTube Video: http://www.youtube.com/watch?v=TK6RollB2sQ  (US - March 24, 2010) "Average losses over $500/year."  "Horribly misleading."

In the words of a Just Energy Independent Contractor: (found in comments under the aforementioned video):

"Come ON ! homeowners Wake Up !!!! I no longer work for Just Energy because going door-to-door is risky because hypothetically one day a homeowner whose bankrupt and is selling his house because hes late on his mortgage payments and cant pay the 2000$ electric/gas bill might open the door and shoot the contractor (me) AHAHAH !!!.......I Made a Fortune in 3 months for a 18 yr old student attending a post-secondary institution in Ontario at the Expense of the Elder and Foreign Immigrants LOL ! EVIL"  YouTube User: xar7  

Att. Gen. Takes Actions Against Just Energy  YouTube Video:
http://www.youtube.com/watch?v=XYR7TixKHpo (US - March 23, 2010).  "Deceptive sales tactics got the company in big trouble".

11.  Just Energy Sales Practices Causing Complaints (Global News, Saskatoon) http://globalnews.ca/news/263258/just-energy-sales-practices-causing-complaints-2/(July 5, 2012)

12.  Reduced Rate Just a Phone Call Away (CTV News) Text and Video:  http://calgary.ctvnews.ca/reduced-rate-just-a-phone-call-away-1.611030 (Feb. 23, 2011).

13.  The Manitoba Public Utilities Board Act: http://www.pub.gov.mb.ca/pdf/12centra/49-12.pdf (April 26, 2012).

14.  Just Energy Lists on the NYSE (Globe and Mail) Video:  http://www.theglobeandmail.com/report-on-business/video-just-energy-lists-on-the-nyse/article1357008/  January 30, 2012

To Conclude:

My overall impression is that Just Energy Manitoba has good intentions, high pressured and skilled sales tactics and that it's a GAMBLE, not a Scam.  People who are elderly, gullible, naïve, grieving, stressed, having money problems, or do not possess a good command of the English language are particularly at risk.  Even if you have a hard time saying "No", you are at risk.  But really, anyone can be convinced that this is a gamble that they should take.  As far as a good deal?  I think that experience is few and far between and only time will tell.

My hunch is, most people sign the contract, and go on good faith that they are saving money.  They never actually review it and compare it to their Manitoba Hydro (Gas) bill.   They continue to renew because they continue to believe the Independent Contractors that they will save money.  Sure, some people make poor decisions, but they should be well informed before they make a decision. 

****Do yourself and your loved ones a favour and read this article.***

Bottom line is, signing a contract at the door (with regards to anything) is NOT wise.  Do your research first.

Update: Please see a French article where I was interviewed for the paper, La Liberte: http://la-liberte.mb.ca/actuel/le-pari-du-prix-fixe (2013).

Regards,

Angela G. Gentile, MSW RSW

(First edit 25 Oct 2013, Second edit 25 Nov 2014)