The CAIPS Retriever

Enbridge Gas Distribution: the second worst in marketing

Why is that?

On economics grounds, the answer is simple and straightforward: because the company that distributes natural gas to residential, business and industrial customers in Ontario is a government-fostered monopoly.

How does this translate into a marketing nightmare?

To make my point, I will just mention two of their "marketing" techniques.
First, they overcharge on suspicion of underreported gas consumption. "The computer" does it without probable cause i.e., nobody bothers to check the meter prior to slapping the overcharge.
Second, they impose a monthly service fee named "customer charge" on the heating bill. The fee is due even in summer, despite no actual gas consumption. As a consequence, service fees amounted to three quarters of my 2004/2005 heating bill while service fees incurred during summer alone amounted to one quarter of my bill.

How does it compare to the worst in marketing?

There is worse than that. The worst experience in marketing is government. Consider government-owned television and/or radio stations: although most of them derive income from private advertisements they also get government subsidies, collected through taxation.
Yet there is more: even if you chose not to watch government broadcasts, you have no way to opt out, you still pay the tax. In order to increase the tax base, one particular government linked the tax to each electric service account and charged a recurring fee. Under the circumstances, electric service accounts opened for stables or family crypts bore the tax too. Even animals and dead people could not escape the "television" tax!

Why is it so absurd?

I need to reiterate - because I tend to forget - that free exchanges are the substance of my living better. On the one hand, I get what I think is the best value at the lowest price available for each "dollar" I choose to spend. On the other hand, the easiest way for me to get "dollars" is to serve others with whatever they decide I am the best at.
The principle of free exchange is recognized by the law - you have to pay me for my work. The reverse stands true too - you have to deliver for my payment. Thus, there is no exchange unless it is a "free" exchange, by way of parties' choice and consent.
In a situation where you are forced into paying for getting nothing in exchange, a question arises: why did your freedom go away?

Why does the worst of marketing perpetuate itself?

Should your first thought go to marketing mistakes or incompetence, dig underneath! It is the deeper strata of economics that hold the ore of truth. No marketing mistake can survive indefinitely in a world of free exchanges. The power to perpetuate abuse comes from government backing. Read the Ontario Ministry of Energy's explanation on why you have to pay Enbridge Gas Distribution "customer charges" even without actual gas consumption.

"In most cases, utilities have to perform regular activities such as meter reading and billing for each customer. In contrast, other retail businesses such as grocery stores and gasoline stations do not install any facilities dedicated to individual customers, nor do they perform regular activities for them."

Who would take such an explanation if it didn't come from the government?

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