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About Security Deposits

Kitchener-Wilmot Hydro Inc (KWHI) holds security deposits to minimize credit risk with new customers.  KWHI pays for energy long before invoices are sent to consumers for their use of that energy and so there is a large lag during which time the utility is exposed to non-payment risk. 

Most customers who open a new account with Kitchener-Wilmot Hydro are required to pay a security deposit.

A deposit for a new account is not required if a customer meets any of the following criteria:

  • Provides a satisfactory credit check at the customer's expense
  • Provides a letter of reference from a gas or electricity distributor in Canada confirming a "Good Payment History" for a period of 12 months within the previous 24 months
  • Enrolls in either Kitchener-Wilmot Hydro's pre-authorized payment or equal billing plans

For existing customers where a Security Deposit has not been collected, or a customer who was previously granted a security deposit waiver, a Security Deposit will be required if the customer has not maintained a "Good Payment History" for the required time period.

A Security Deposit may be paid in instalments. When requested, customers shall be permitted to pay deposits in equal instalments over  six months.

Security Deposit Amounts

For customers without electric heat $150.00
For customers with electric heat $250.00

Where a customer has a payment history which discloses more than one disconnect notice, one cheque returned for insufficient funds or in a relevant 12 month period, the deposit amount will be based on 2.5 times the customer's highest monthly bill for the most recent 12 months within the past 2 years.

For full details regarding security deposits, please refer to the Ontario Energy Board's Distribution System Code.