Marketing of Gas and/or Electricity Business Licence


Definition

Marketing of electricity or gas business means the business:

  • Of soliciting, negotiating, concluding or performing the whole or any part of a marketing contract on behalf of a *consumer, or

  • Of soliciting a person in any manner for the purpose of having that person enter into a marketing contract or of negotiating, concluding or performing the whole or any part of a marketing contract
*Note: A consumer is a person who enters into a marketing contract to purchase less than 2500 gigajoules of gas per year or 250 megawatt hours of electricity per year

Licensing Requirements

Note: Failure to provide complete information will delay processing of your application and may result in a refund of your fees and closure of your file.

To get a licence for an electricity or gas marketing business you must provide the following:

  • Completed application form (pdf)

  • Completed Statutory Declaration (pdf), where independent contractors are utilized

  • Original, signed security in the amount of $250,000*. You may get this security in one of two ways:

    • General Surety Bond (pdf)

    • Cash Security Agreement (pdf) accompanied by:

      • An Irrevocable Letter of Credit (pdf), or

      • Cash (including payment by credit card, bank draft, money order, certified cheque – all of these are payable to the Government of Alberta), or

      • A term deposit or other similar instrument in the name of the Government of Alberta, c/o Service Alberta, 3rd Floor, 10155 – 102 Street, Edmonton, Alberta, T5J 4L4, in trust for (name of licensee)
*Note:  In accordance with the Security agreement, the security provided will be held for two (2) years after the agreement expires or for two years and three months (27 months) from the date the business license expires or the business closes or longer in the event of a claim being received.

The amount of security given is a minimum security requirement.  The amount could increase at the discretion of the Director of Fair Trading.  When setting the security amount, the Director can consider the following:  the department’s previous history with the business and its partners or directors, the business’s financial history, and criminal convictions.
  • A licensing fee of $1000 per licence (Note: Your cheque should be made payable to the Government of Alberta.  If you are applying in person, you can also pay this fee using Debit, Visa, MasterCard, or cash.  This fee is for a one-year licence.  Licences take effect the date they are issued.  The department will send you a notice and the appropriate form(s) before your licence needs to be renewed.  Licence holders must notify Service Alberta in writing if their business licence address changes.)

  • A copy of the Marketing Contract(s) and marketing materials

  • Distributor Agreement (if applicable)

Contract Requirements

Consumers are able to enter into marketing contracts for electricity and gas in a variety of ways including the Internet and over the telephone.  The contract requirements vary depending on the method the marketing contract is entered into.

Energy Marketing Regulation

Refer to the following sections:

  • Section 10 – Duties relating to documentation – Marketing Contract (for marketing contracts other than Internet or Telephone marketing contracts)

  • Section 11.4 – Duties relating to documentation – Telephone marketing contract

  • Section 12(1) – Duties relating to documentation – Internet Marketing Contract

  • Section 15 – Plain Language Energy Marketing Template

The plain language contract for buying gas and electricity is available from the Utilities Consumer Advocate website or by calling the Consumer Information Centre toll-free at 310-4UCA (4822).

Identification

Every licensee must provide every individual who acts on behalf of the licensee in the marketing of electricity or gas business with an identification card that:

  • Shows the name of the individual acting on behalf of the licensee and the name, address and license number of the licensee on whose behalf the individual is acting, and

  • Is signed by the signing authority appointed by the licensee

Legislation

Fair Trading Act

Energy Marketing Regulation

Copies of legislation can be obtained from the Queen’s Printer Bookstore at:

Park Plaza, 5 floor
10611-98 Avenue
Edmonton, Alberta   T5K 2P7
Telephone: 780-427-4952

To call a Government of Alberta office toll free (in Alberta), dial 310-0000 and follow the instructions.