Do I need to pay a deposit for connecting utilities?

In Calgary, deposit requirements for utility service connections depend on several factors, including credit history, previous payment history, and customer type. The City of Calgary, through its partner ENMAX Contact Center, uses a risk assessment system to determine whether new customers are required to pay a deposit. This system is designed to protect utility companies from potential non-payment while ensuring access to essential services for all residents.

Utility companies in Alberta are allowed to require deposits under provincial regulations. These deposits are used to pay bills if the customer is unable to pay them. If a company requires a deposit, the customer is obligated to pay it—otherwise, the provider has the right to refuse service or disconnect existing services. This is standard practice not only in Alberta but throughout Canada, including Ontario and other provinces.

ENMAX, as the primary electricity provider in Calgary and collector of municipal utility bills, uses a structured assessment system to determine deposit requirements. The company offers customers the choice between a credit check or a deposit. Many customers choose a credit check as the less burdensome option, especially if they have a satisfactory credit history.

Specific requirements for different types of customers

Residential customers

Specific deposit rules apply to residential customers in the City of Calgary. Residential customers who have not had an account with the City of Calgary for 12 months or who have an unsatisfactory payment history may be required to provide a deposit. This rule applies to all city services, including water, sewer, and waste management, which are billed through ENMAX.

The deposit amount for residential customers is typically calculated based on expected consumption and may vary depending on household size and seasonal factors. In some cases, the deposit may be equivalent to two months' average bill, but the exact amount is determined on a case-by-case basis based on a risk assessment.

Commercial customers

Commercial customers face different requirements. Commercial customers who have not had an account for 24 months or more may be required to provide a deposit. This longer period reflects the fact that commercial customers typically have more stable business relationships and can demonstrate financial capacity through business documents.

The deposit amount for commercial customers is often significantly higher due to higher energy and water consumption compared to residential customers. Commercial deposits may be equivalent to three months or even more of expected bills, depending on the type of business and its energy needs.

Factors affecting deposit requirements

Credit history and financial situation

The main factor in determining the need for a deposit is the customer's credit history. Utility companies usually conduct a credit check to determine whether a new customer should be required to pay a deposit and how much that deposit should be. Reasons that may lead to a deposit requirement include:

  • no previous payment history with any utility company,
  • late or missed payments to a previous utility company,
  • poor credit history.

Even existing utility customers may be required to pay a deposit under certain circumstances:

  • missed payments,
  • returned checks,
  • disconnection warnings or actual disconnection,
  • payment problems or disconnection due to non-payment,
  • previous deposit used to pay off debts.

Newcomer status

Newcomers to Canada often face unique challenges due to their lack of local credit history. A guide for newcomers to Alberta notes that if you don't have a credit history, companies may require a deposit when setting up an account. This applies to all types of utilities, including electricity, gas, water, and telephone.

For students and young adults without a credit history, the situation is similar. Reddit users report that relatives without a credit history have faced deposit requirements from ENMAX, but the company offers alternatives — a guarantor with a good credit history.

Alternatives to deposits

Credit checks

ENMAX offers customers a choice between a deposit and a credit check. If you have a good credit history, this allows you to avoid paying a large amount up front.

Programs for low-income customers

Low-income customers may be exempt from deposits, but for gas, proof of 2 years of good payments and a subscription to a budget payment plan may be required.

EMCO Energy sometimes offers no-deposit services, but availability is limited.

Deposit refund terms

Terms

Deposits are refunded after 1–2 years of timely payments or upon account closure (credited to the final account).

Interest accrual

Some companies charge interest on deposits, terms vary.

Additional fees and commissions

  • New account fee in Calgary — $10.
  • Connection fees may apply (sometimes up to $480 for complex cases).
  • Reconnection fees after disconnection for non-payment.

Practical tips

  1. Prepare your documents — ID, proof of address, references from banks or previous providers.
  2. Combine services into one account for convenience and potential deposit reductions.
  3. Consider fixed rates for cost stability.

Deposit requirements for utility connections in Calgary are a reality for many new residents, but knowing the rules and options can help reduce costs and simplify the move.