Water Heater Rental Agreement

Our Commitment

The water heater you rent from us is backed fully by Direct Energy Home Services. Our commitment to you, our rental customer, is to provide a reliable, trouble-free water heater.

Our commitment includes:

• Repair and maintenance of the water heater with no service charges or parts replacement charges except in the following circumstances:
  1. if you (or a third party not authorized by us) damage the water heater or if repairs are necessary because of use for which the water heater was not intended;
  2. unless you are paying our hard water rate, if the water heater requires de-liming, flushing or other repair due to water conditions. (We cover only diagnostic work in these situations. Hard water conditions are as determined by Direct Energy); or
  3. where venting or piping requires cleaning, repair or replacement.
• Our 24-hour per day, 7 days per week emergency phone number at 1-800-266-3939.
• A rental arrangement that can be transferred to the next homeowner if you sell your home.
• A buyout option under which you may elect to purchase your water heater at any time for a price discounted to take into account the age of the water heater. (See details below.)
• A termination option allowing you to have your water heater removed (see details below).

Customer Commitment

We will honour our commitment over the useful life* of the water heater. In return, you agree that:

• You will pay your rental charges when due, together with interest on any late payments at interest rates we may set, acting reasonably. Your rental charges will be included on your utility bill, or we may choose to bill you separately or through our service provider. Methods of payment will be set out on the bill you receive.
• We may change our rental rates from time to time by announcing rate changes in advance in bill inserts.
• You will use your water heater safely and responsibly, and, in particular, you will:
  1. ensure that no combustible, hazardous or flammable materials are used or stored near the water heater;
  2. ensure that the water heater is not confined in a location where it is difficult to service or remove or where there is inadequate ventilation;
  3. ensure that the vents and openings are kept clear and clean; and
  4. provide us with access to the water heater whenever reasonably required for purposes of inspection, repair or removal
• It is your responsibility to ensure that the water heater is located in an area with sufficient drainage in the vicinity and that the drainage is open and unrestricted, and we will therefore not be responsible for damage caused if the water heater leaks.
• Except as permitted by your buyout option and termination option under this agreement, you will not permit anyone who has not been authorized by us to service, repair, modify, move or disconnect the water heater.
• You will be responsible for any damage to the water heater if caused by you or unauthorized third parties or by fire, flood, accident or other insurable risks.
• During the term of this agreement, the water heater remains our property, does not become a fixture, and you will not tamper with any tag(s) or sticker(s) identifying the water heater as rented equipment.
• If you sell your home, you will advise the purchaser that the water heater is rented pursuant to this agreement. We will permit the purchaser to assume your rights and obligations under this agreement, effective from the date of sale, provided that (i) the purchaser is notified in the agreement of purchase and sale that the water heater is rented and is subject to these terms and conditions, and (ii) you advise us in advance of the purchaser's name and the intended date of sale. We may also accept performance of your obligations (including payment obligations) from other parties (such as tenants) but will not be required to do so.
• We may inquire about your credit history.
• You agree that we may terminate this agreement and remove the water heater if you fail to meet any of your commitments.
• At the end of the useful life* of your present water heater, you are not obligated to rent and we are not obligated to supply replacement equipment, unless we mutually agree at the time.

Personal Information About You

We collect personal information about you in order to establish and manage our business relationship with you. You authorize us to review information about your Direct Energy bill payments. We won't knowingly share this information with third parties without your permission, other than a party that we transfer or assign this agreement to. You may contact us if you'd like more information about our affiliated companies or how we use personal information.

Your Buyout Option

• You may purchase your rental water heater at any time for the applicable age-reduced price shown on the Buyout Schedule provided with this agreement.You may exercise your buyout option by notifying us in writing or by calling a Direct Energy Rental Specialist at (416) 495-3979 or toll-free outside Toronto at 1-800-493-3034.
• When you exercise your buyout option, you accept the water heater in "as-is" condition, subject to the balance of any transferable manufacturer's warranty, and you assume responsibility for the water heater and its repair and maintenance.You also agree to pay the buyout price when invoiced by Direct Energy.
•  2008 Water Heater Buy-Out Schedule (PDF)^†

Your Termination Option

• You may terminate your rental and return your rental water heater to us at any time by notifying us in writing at the address set out in the section below entitled How to Contact Us or by calling a Direct Energy Rental Specialist at (416) 495-3979 or toll-free outside Toronto at 1-800-493-3034. Depending on the circumstances, there may or may not be charges associated with this termination of your rental as provided for below.
• If you terminate the rental during the useful life* of your water heater and do not exercise your buy-out option, you agree to arrange for the safe return of the water heater to us. You have two alternatives:
  1. you may call us and arrange for Direct Energy to disconnect and/or retrieve the water heater;
     or
  2. you may have a qualified third party disconnect your rental water heater and then return it, along with the rating plate, safely to a designated Direct Energy location during return hours. (Call Direct Energy for the nearest location for returns.)
• If you choose to disconnect and/or return the water heater yourself or through a third party, you do so at your own risk, and you agree that you will accept responsibility for all damages or claims resulting from the disconnection, removal and return of the water heater.
• If you choose to have Direct Energy disconnect, remove or retrieve the rental water heater, in most cases there will be a $75.00 charge for these services. (There is no charge if you are more than 32 km (20 miles) from a Direct Energy return location or if we fail to retrieve your water heater within two weeks of your request or your water heater has been rented for 15 years or more.)
• Your rental (including your obligation to make rental payments for subsequent months) ends upon the return of the water heater in reasonable condition reflecting its age, normal use and local conditions. (If we fail to retrieve the water heater within two weeks of your request, we will not charge for subsequent months.)

How to Contact Us

80 Allstate Parkway, Markham, ON L3R 6H3
Attention: "Rental Group"
1-800-266-3939

* Useful life of the rental water heater ends when Direct Energy or its authorized service provider deems the rental water heater cannot be reasonably repaired. (For instance, when there is terminal failure of the internal lining of the tank or when the water heater requiring repair is more than 15 years old.)

^† PDF files require the use of the free Adobe Reader.