Canadian Energy Protection – Ottawa, Ontario, Canada

October 30, 2024

Canadian Energy Protection

Powering Through

Navigating regulatory challenges, driving aggressive growth, and spearheading customer engagement in the ever-evolving Canadian energy sector.

Canadian Energy Protection, a leader in the Canadian energy sector, operates on two fundamental pillars, which set the organization apart as it navigates the complexities of providing energy services and educating the public on the intricacies of the energy market.

Mark Justice

“We have two main pillars,” says Mark Justice, President of the company. “The first is the physical sale of energy, which covers everything from procurement to energy distribution. Then there’s the advocacy side, which is all about informing consumers and providing education about the energy market.”

As the company approaches its tenth anniversary this November, Mark reflects on the challenges that have shaped its history. The organization’s trajectory is not just one of growth but of resilience in the face of considerable adversity. Mark recounts that this resilience has been central to its success and longevity in a highly competitive and regulated industry.

“When I look at the history of the organization, it’s all about overcoming adversity,” he says. “Adversity has been our strength.” From the beginning, the company faced significant hurdles; the first was a massive regulatory shift that hit just as they got their operating license. “We were pushing for that change but didn’t expect it to completely upend how we do business.”

The first few years saw constant regulatory changes, which led to many of their competitors exiting the Ontario market. But instead of backing down, Mark and his team dug in. “We had to forge our way through and create something new right from the start,” he says. He considers this determination to stay the course despite the obstacles to be one of the company’s most significant milestones.

A Strategic Shift Toward Commercial Clients

Canadian Energy Protection was primarily recognized as a residential energy supplier in its early years. The company built its reputation by catering to individual households, offering natural gas and electricity with various options, including renewable energy. Today, the bulk of its new business comes from supplying natural gas and electricity to companies, particularly those facing punitive utility rates due to complex billing structures.

“Our main focus now is on businesses that have no option but to be in a commodity rate category through the utility that is meant to encourage residential consumers to conserve energy during peak times.” Mark says. These businesses, often multi-location enterprises that don’t meet

the threshold for the large volume rate category, can be hit with high costs simply because of when and how they consume energy. “They’re getting charged at different times of the day based on when they use energy, and sometimes these businesses are just being penalized because they have no option but to consume energy at peak times due to the nature of the business.”

In response, Canadian Energy Protection offers these businesses a tailored solution. “We target a specific type of business where, almost immediately, we can present them a financial

benefit,” Mark says. The company’s model allows businesses to access the open energy market—a privilege typically reserved for businesses in the large volume rate category, or licensed third-party suppliers like themselves.

A Business Model Rooted in Personal Relationships

Canadian Energy Protection has chosen a different path in an industry often dominated by transactional exchanges, emphasizing deep, long-lasting relationships with its clients. “We have a personal relationship with every single client,” Mark says confidently. “It’s almost like a doctor’s office, where they come to us for several other things, and we talk to them regularly.”

This relationship-based approach means that clients aren’t just customers—they become part of a trusted network where their concerns and needs are genuinely heard and addressed. Mark notes that this is a key reason why over 90% of their original customers are still with them today, even though they can leave anytime. “We don’t force anybody to stay with us,” he adds. “We allow any customer to cancel at any time for any reason, and we’ve never charged a fee for that.”

This open-door policy has fostered a level of trust that is rare in the energy sector. Mark highlights that clients frequently seek advice beyond the company’s core services. “People know they can trust us and that we’re going to tell them if something isn’t to their benefit,” he explains. This extends even to their products—if something isn’t right for the client, Mark and his team won’t hesitate to say so.

Izabelle Justice

Izabelle Justice, Vice President, echoes this sentiment, emphasizing the family-like atmosphere permeating their client interactions. “We know the details of everybody firsthand,” she says. The team remembers the specifics of client situations, almost as if they were managing a portfolio of close relatives. “We’re known for being brutally honest,” Izabelle continues. “We tell them every little thing, and we don’t hold anything back just to hold on to a customer.”

Alberta’s Energy Market: A Double-Edged Sword

Alberta’s energy market, a vital component of the province’s economy, is currently experiencing a rare and dramatic shift. For Canadian Energy Protection, this presents significant opportunities and notable challenges.

“We’re seeing the gas market completely bottomed out,” Mark explains. “Prices are next to nothing.” This downturn in market prices has allowed the company to offer some of the most competitively priced products in years. “We’ve got rates available now that were unthinkable just a few years ago,” he adds. This opportunity has not gone unnoticed— Mark reveals that in the last 90 days alone, the company has tripled its volume as businesses

rush to take advantage of these historically low rates.

The appeal of securing long-term energy deals at these prices is robust, especially for businesses that previously wouldn’t have considered such agreements. “Businesses that wouldn’t have considered a five-year commitment before are now jumping at the chance,” he notes. This surge in interest is not just a boon for Canadian Energy Protection but also represents a strategic advantage for clients eager to mitigate future energy costs.

However, the situation has its downsides. While the low prices are good news for consumers, they signal deeper issues for the Alberta economy. “It may not be good news for Alberta,” Mark cautions. The bottoming out of prices indicates broader market weaknesses that could have long-term consequences for the province’s economic health. “It’s a ten-year low that we’re seeing right now,” he says, emphasizing the rarity and significance of the current market conditions.

The Challenges of Regulatory Red Tape in Ottawa

Operating out of Ottawa, Canadian Energy Protection is uniquely positioned in a city dominated by government activity. While one might assume proximity to the nation’s political heart would offer an advantage in monitoring legislation, the reality is quite different.

Izabelle offers a candid take on this, noting, “It’s probably harder because there’s so much government in Ottawa.” The pervasive influence of government and the dense concentration of bureaucratic operations make Ottawa a challenging environment for staying ahead of regulatory changes.

In Ottawa, nearly everyone is connected to the government somehow, significantly shaping the city’s atmosphere and business dynamics. “Ottawa has a different personality than other cities,” Izabelle observes. “You can feel it. There’s a vibe here that doesn’t exist in Toronto or London.” This unique environment, while rich in political activity, also means that businesses like Canadian Energy Protection must constantly navigate layers of regulatory red tape.

Mark echoes this sentiment, acknowledging that staying on top of regulatory developments can be more challenging in Ottawa. “In Ottawa, it’s the federal government, so federal regulations don’t touch us directly. We’re provincially regulated, and that government is in Toronto.” While federal policies influence the broader energy landscape, the day-to-day regulations affecting Canadian Energy Protection are determined at the provincial level. This separation adds complexity, as the company must monitor regulations from Toronto while remaining aware of federal initiatives that could indirectly impact their operations.

Izabelle offers a vivid example from their experience. When Ontario introduced new rules in January 2017 under the Energy Consumer Protection Act (ECPA) banning door-to-door sales for residential energy contracts, the impact was immediate and significant. “It stopped everybody from being able to do any kind of door-to-door and it added more red tape in the name of consumer protection,” she explains. Despite the new restrictions, consumer demand didn’t disappear—calls from potential clients continued to flood in. However, the process of securing a contract became a bureaucratic maze.

“Let’s say John Smith wanted an agreement for his home,” Izabelle begins, illustrating the painstaking process. “He would have to go through a 15-minute or longer scripted session where he has to say ‘yes’ to everything, and it all has to be recorded.” Any deviation from the script, even something as simple as a certain question or comment, could force the entire process to start over from the beginning. “If John Smith asks a certain question that leads the conversation in a different direction, you must cancel the call and start again. They don’t want any influence.” This level of regulation, while intended to protect consumers, has made it increasingly difficult for companies to operate efficiently.

A Future Fueled by Growth and Innovation

As Canadian Energy Protection looks ahead, the company is poised for significant expansion and technological advancement. “We have a very aggressive acquisition campaign that we started about 90 days ago,” Mark shares, indicating that this push is just beginning.

He anticipates the company could be “ten times the size that it is today in volume” within the next 12 to 18 months. This rapid expansion is driven by an influx of new contracts fueled by the low energy prices that have made their offerings more attractive than ever. “We’re going to continue this push while prices are low,” he emphasizes, recognizing the unique opportunity to solidify the company’s market position.

Izabelle echoes this enthusiasm, noting the momentum within the company. “We’ve got this energy rush going through us,” she says, describing the daily excitement that now influences their work. After years of battling industry challenges—from stringent regulations to the effects of the pandemic—the company is finally seeing the tides turn. “All the government regulation is in place. All the pandemics are behind us. Hopefully,” she remarks, hinting at a cautious optimism. The company is ready to capitalize on this newfound stability, driven by the rapid growth they’ve experienced in just the last few months.

Yet, she remains grounded, aware that the road ahead may not be smooth. “I can’t expect it to be smooth. I can expect that we’re going to have some glass shatter on our feet, and we’re going to have to climb over that,” she admits. However, the current wave of success offers a moment of respite—a chance to enjoy the fruits of their hard work and perseverance.

Looking forward, the Justices see a bright future for Canadian Energy Protection. The following 18 months promise growth and innovation, plus the continuation of their mission to provide clients with transparent, reliable energy solutions. As Izabelle puts it, “What we see is a big change in how we’ve been doing things and where we’re going… it’s going to be a lot of fun.” With the winds of change at their back, the company is ready to embark on this exciting new chapter.