Competition Bureau Files Application with Competition Tribunal with Consent of Enbridge

OTTAWA, December 18, 2001 — Over one million Ontario households will benefit from today's Competition Bureau filing with the Competition Tribunal in agreement with Enbridge Services Inc. (Enbridge). The Consent Order will encourage competition with Enbridge in the supply and service of natural gas hot water heaters where Enbridge has been the main supplier.

The Bureau initiated an inquiry in May 2001, after receiving complaints about the high cost consumers had to pay to get out of the Enbridge natural gas hot water heater rental program in Eastern Ontario, the Greater Toronto Area and the Niagara peninsula. The Bureau concluded that the exit charges and conditions prevented other companies from attracting customers and competing. Once Enbridge was informed about the Bureau's conclusions it agreed to resolve the Bureau's concerns through a cooperative approach.

The Consent Order, when approved by the Competition Tribunal, will ensure that:

• Competitors will no longer be prevented from disconnecting and returning Enbridge's rental water heaters.
• All customers will be given a clear "Buy-out Price" option for their Enbridge rental water heater reflecting its price at the time of installation.
• The period, during which rental arrangement exit charges may apply, will be reduced from 11 years to 5 years, having the immediate impact of eliminating exit charges from over 35% of Enbridge's current rental customers.
• While subject to exit charges, Enbridge rental customers will be protected against unclear and unreasonable rental rate increases.

"By stimulating competition, the measures outlined in the Consent Order will benefit consumers and provide new opportunities for small and medium-sized businesses" said André Lafond, Deputy Commissioner of Competition

The Competition Bureau is an independent law enforcement agency that promotes and maintains fair competition so that all Canadians can benefit from competitive prices, product choice and quality service. It oversees the application of the Competition Act, the Consumer Packaging and Labelling Act, the Textile Labelling Act and the Precious Metals Marking Act.

For general public enquiries, please contact:
Competition Bureau's Information Center
1-800-348-5358

For media enquiries, please contact:
Maureen McGrath
Senior Communications Advisor
Communications Branch
819-953-8982 or 613-296-2187 (cell.)