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Nova Scotia Power: A Cautionary Tale for Consumers Print E-mail
Written by D.L. McCracken   
Wednesday, 17 January 2007
I have in my home an Electric Thermal Storage Unit otherwise known as an ETS. It is installed in the basement of my home and for seven years has been doing its job with quiet efficiency. The unit was purchased through Nova Scotia Power (NSP) on a lease to own plan and last year the unit was finally paid in full.  As 2007 began however, the ETS decided that it was time to take a well-earned vacation and stopped working properly. My first contact was NSP and although customer service displayed not an ounce of interest or concern they did suggest that I call an electrician. After a consultation with a local electrical contractor, I was informed that the unit's main motherboard had "worn out". To replace this particular part, it is going to cost $818.56. An outrageous price.

After my email correspondence with NSP's customer service it suddenly dawned on me that the moment the ETS became mine,  NSP absolved itself of all responsibility for the unit, a decision in my opinion that constitutes unfair marketing practices. Allow me to explain my theory:

--During the consultation and subsequent purchase period when dealing with a NSP sales representative, I was never cautioned about the exorbitant cost of replacement parts should this unit ever break down nor was I told that if parts were required after the unit was paid in full, they would have to be imported from the United States.

--ETS units while being of benefit to consumers are also beneficial to NSP. If they were not of benefit to NSP they would not be included in the marketing of energy efficiency products on NSP's official website. According to the manufacturer, Steffes Corporation located in North Dakota,  "more and more power companies are finding ETS to be an essential part of their marketing programs in order to remain competitive in the energy world". ETS Units provide an effective means for power companies (including NSP) to reduce their energy costs through improved system load factors, efficiency and/or demand savings thereby increasing market share and ensuring their competitive position with other fuels."  So, without ETS Units NSP would face a more difficult time remaining competitive. The company actually relies on people like me to purchase and use these units along with other similar products as advertised and encouraged on their website.

--From the Steffes website again, even more benefits are presented to power companies like NSP and I quote: "ETS is a very effective tool which helps power companies increase their market share and retain current all-electric customers. By becoming competitive with fossil fuels, ETS is an excellent option for the power company to attain new construction heating loads. To combat the fierce competition from oil and gas systems, ETS helps retain existing all-electric customers." In other words ETS Unit consumers are assisting NSP in the retention of their electric customer base.

--ETS and other home heating alternatives are promoted to power companies by manufacturers like Steffe Corporation as "an integral part of the long-term goals and objectives of a power company like NSP. The investment has a good payback, keeps homes comfortable, and all electric."


Nova Scotia Power continues to promote several electric-based thermal storage systems including the ETS as reliable methods of achieving  energy efficiency in Nova Scotia. NSP obviously relies to a certain extent on the purchase and usage of these units by Nova Scotians in the area of market shares, the ability to maintain a competetive edge with other fuel sources and retaining electric customers. If everyone who owns an alternative heating unit like the ETS is contributing to NSP's productivity and bottom line, why are we abandoned by NSP as soon as the various units are paid off?

But NSP washes its hands of any responsibility the moment the unit is paid off by the customer and like so many other products, as soon as it belongs completely to the customer, parts begin to wear out and people like me are forced to pay out over $800.00 for one part.

Now I don't think that's fair. NSP has ignored the fact that there is only one manufacturer who happens to be located in the United States. The units themselves and their very expensive parts must be shipped to NS from the U.S. in American dollars and guess who pays all the duties and dollar exchanges plus shipping and handling as well as the cost itself...the owner of the unit. That would be me.  The units are obviously quite popular in this province and yet NSP did absolutely nothing to ensure that a supply of necessary parts were purchased and stored in this province in an effort to keep costs at a reasonable level.

The fact that after a period of time the unit will be paid off and owned outright by the consumer does not mean that NSP's role in the operation of the unit comes to an end. It continues for both the consumer and the power company. NSP's benefit does not end at the period of ownership and they continue to reap those benefits. It becomes a partnership. Or it should.

NSP offers all energy saving units to their customers as a product of that power company. Of course their sales representatives do not tell prospective customers that ETS units are a product of NSP, but they don't say otherwise either. Most customers will automatically assume that if they purchase a unit from the power corporation, that unit is being sold by that power corporation.

We were never informed by NSP that parts for the units would require many to consider taking out a second mortgage in order to pay for them. And speaking of parts, wouldn't it be considered unusual for the guts or the 'motherboard' of an ETS to wear out in a little over 7 years? I have a computer whose motherboard is older than that. And it works fine.

I used to rave to my friends and colleagues about how wonderful the ETS Units are. The unit has become something with which I cannot live without and I feel I have no choice but to repair it to the tune of hundreds and hundreds of dollars. Now of course I will add a disclaimer to my raves and caution others that the unit will to many, be too expensive to maintain once NSP relinquishes their role.

Although I have no statistics to back up my claim I will go out on a limb and suggest that the ETS Unit and other alternative heating units being offered on NSP's website have been a popular alternative for many in this province and subsequently a lucrative deal for the power company. The fact that they continue to promote these particular products confirms my claim. Otherwise, NSP wouldn't be offering them. Because all owners of these alternative home heating units are contributing to NSP's bottom line, competitive edge and the expectations of its share-holders, NSP has a responsibility to share in the costs of maintaining these units for as long as the customer continues to own them.

My first bill for a part will be $818.52. I will anxiously await contact from a representative of Nova Scotia Power with an accounting of their share of this repair bill. If of course NSP remains silent I will assume that they have confirmed their general reputation of being a company who grudgingly distributes power in this province at increasingly inflated prices, who are at this time expecting the people of this province to hand over yet another 9% increase in rates and a company who may say that they care about their customers but in fact only care about their share-holders.

Update: D.L. McCracken is now $800.00 poorer after one hour's work by an electrician.

Contact D.L. McCracken here - This email address is being protected from spam bots, you need Javascript enabled to view it  

 
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