Competition Bureau completes investigation into Enercare’s water heater rental contracts, policies and practices
Sep. 27, 2019
Global Korean Post
The Competition Bureau announced that it has discontinued its investigation into Enercare Inc.’s water heater rental contracts and return practices. The Bureau has issued a position statement summarizing this investigation and the reasons for its discontinuance.
The evidence gathered by the Bureau does not clearly demonstrate that Enercare’s rental contracts substantially lessen or prevent competition, which is one of the Competition Act’s requirements for a behaviour to constitute abuse of dominance. Similarly, the evidence did not establish that Enercare’s return practices are anti-competitive. As its enforcement decisions are based on the available evidence, the Bureau could not justify making an application to the Competition Tribunal at this time.
However, the evidence suggests that Enercare’s rental contract practices could raise concerns under the Competition Act in certain circumstances. Should new and compelling evidence come to light, the Bureau will take action to ensure consumers can receive the full benefits of a competitive and innovative marketplace.
In 2002, the Competition Tribunal issued a consent order requiring Enbridge Services (later known as Direct Energy) to review a number of its rental water heater return policies and procedures.