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 Conditions of Service.

What is your policy regarding security deposits?

Our policy is included in our Conditions of Service

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.
When are security deposits not required?

Please refer to our Conditions of Service.

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?

Please refer to our Conditions of Service.

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 office located at 395 Southgate Drive in Guelph.
  • 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?