Security Deposits

We collect a security deposit from most new customers to help protect us from non-payment and encourage customers to pay accounts on time. Here are answers to common questions about security deposits.

What is the purpose of a security deposit?

We collect a security deposit from most new customers and sometimes from existing customers. There are two reasons for security deposits:

  • To help protect us from non-payment.
  • To encourage customers to pay accounts on time.

For more information, consult our Security Policies and our Conditions of Service.

What is your policy regarding security deposits?

Guelph Hydro has Security Deposit Policies for:

How much is a security deposit?

When a deposit is required, the amount of the deposit will be determined as follows:

  • For monthly accounts, the deposit is based on 1.75 times the average consumption for a like residence over a 12-month, consecutive period in the last two years.
  • For customers who received more than one disconnection/ collection notice in the relevant 12 month period, a deposit will be calculated based on the highest actual or estimated bill in the past 12 months.
  • Residential customers can pay a required security deposit, an increase in a security deposit or a replacement of a deposit applied against arrears, in equal installments over at least six months.
When are security deposits not required?

Deposits are not required on a residential account when:

  • The customer has a satisfactory payment history of one (1) year with Guelph Hydro.
  • The new customer has proof of a satisfactory payment history of one (1) year with another electricity or gas utility
  • New customers who provide a satisfactory credit rating on a credit report from a recognized credit agency
    • The customer is responsible for the cost of obtaining the credit report
  • Customers who are billed under a Retailer Consolidated Billing agreement

For more information, consult the following documents:

What is a "Satisfactory Payment History"?

A satisfactory payment history means that within the last 12 months:

  • You have not received more than one disconnection notice.
  • You have not had more than one cheque returned for insufficient funds.
  • You have not had more than one pre-authorized payment returned for insufficient funds.
  • We have not made a disconnect or collection trip for your account.
  • Or you pay a fee to obtain a satisfactory credit report from:
When will my deposit be returned?

We can return the deposit after one year of good payment history as a credit on your account.

We also return your deposit if you close your account with us. When an account is closed, we apply the deposit to your final bill. Any amount left over is returned to you in the form of a cheque.

Do you pay interest on the security deposit?
  • Yes, interest is paid to customers on an annual basis.
  • Interest will be calculated at the rate prescribed by the Ontario Energy Board - currently the prime business rate, less 2% - and updated quarterly.
  • Interest on cash security deposits shall begin to accrue from date of receipt by Guelph Hydro at its head office.
  • On instalment security billing deposits, interest shall begin to accrue from the date of receipt by Guelph Hydro at its head office of the last instalment payment.
What are the Ontario Energy Board Rules for collecting security deposits?