'Rendered homeless': Tenant, landlord question Newfoundland Power's ability to force evictions

Kate Underhill kneels on the floor and packs her belongings into boxes as her therapy dog scratches at the door to come inside.

The small victory of the day — her power was turned back on at the Mount Pearl home she shares with her boyfriend.

In order to do that, however, she had to admit defeat to the province's largest electricity provider and move out.

"It was heartbreaking," Underhill said. "It's sad to think this is what Newfoundland Power will stoop to to get their money."

Underhill owes $1,500 to Newfoundland Power, the provider of 85 per cent of all electricity to consumers in the province.

She and her boyfriend moved into a rental house in September.

They thought they were approved for service by Newfoundland Power, with just her boyfriend's name on the bill.

They don't even care about [payment plans]. They want all their money up front.- Kate Underhill

But according to Underhill, their landlord got a call from the power company two weeks ago. They asked who was living in the home, and the landlord provided their names.

Underhill said they did not consent to having their names released, which may violate federal privacy laws.

Last Wednesday, their power was cut — even though Underhill's name is not on the account and she has been making payments on her debt.

"I was hoping that with a payment plan arranged, everything would be fine. But they don't even care about that. They want all of their money up front."

Newfoundland Power says its regulations have been approved by the Public Utilities Board.

"If the company becomes aware that an individual has not disclosed that a co-occupant with an outstanding bill was living at the premises at the time application for service was made, appropriate collection action, up to and including disconnection of service, may be taken," a release reads.

'It seemed entirely shady'

Megan Coombs knows this situation all too well.

The single mother of a six-year-old girl was on the other side of the issue last winter, when Newfoundland Power questioned her about who was living in her basement.

After her previous tenants moved out, she called to set up the bill in her name, with intentions of renting to a new tenant with heat and electricity included.

Coombs said she was pressured into providing the name of the tenant, which she believes is a breach of privacy under federal laws.

"It seemed entirely shady," Coombs said. "I should be allowed to let anyone live there."

Two months went by, and she did not receive a bill for the basement apartment.

In late March, as she was preparing to take her daughter to Disney World, the electric company told her the power would be cut unless the tenant paid in full or left the apartment.

"It was freezing cold," she said. "What happens if my pipes burst while I'm away?"

Coombs was left with no choice but to evict the man with less than 24 hours' notice — a violation of the Residential Tenancies Act.

"I felt terrible," she said. "Like I was being used as a bill collector by Newfoundland Power to get him to pay a bill that he had owed gosh only knows how long ago."

After evicting the man, Coombs went the next two months before finding a new tenant in her basement apartment — a loss of $1,700 in income.

"As a single mom, going two months with no rent, that was pretty hard."

A statement from the company says renters are told their landlord will be contacted and their information will be requested. Federal privacy laws state a landlord must request permission from the tenant before disclosing any information.

Coombs admits her tenant did not give permission, and Underhill says she did not consent either. Still, Newfoundland Power insists it did nothing wrong.

"Newfoundland Power does not consider it to constitute a breach of anyone's privacy."

Where to turn?

Underhill is a cook with a full-time job at a St. John's restaurant, but is currently at home recovering from surgery.

She suffers from severe anxiety, eased by a German shepherd who looks after her when she's feeling down.

"He's been working overtime lately," she said.

She now has to find a new place to live, but cannot move to a home that needs power connected.

"They are rendering people homeless. I've got the fear in me that no matter where I go, they are going to find out."

Newfoundland Power says it will cut off service only for people who did not disclose a roommate at the time of their application. Those applications can take several weeks to complete, during which time power is provided.

If Underhill were to move in to a home where power is already connected, the company says it would not be allowed to cut the power.

She has friends and family to lean on, but she worries about those who do not.

After posting her story on a Facebook group called Newfoundland Tenant and Landlord Support, Underhill found out about several more instances where people found themselves in the same situation — Coombs included.

CBC News has seen messages from seven people who said they faced similar situations.

Threatening to make people homeless in order to get that money just isn't the way to do business.- Kate Underhill

Underhill's debt dates back to 2013, shortly after she moved out on her own. Underhill says she had been on a payment plan with a collections firm but was not notified when her debt switched to a separate company.

After a disconnection notice Oct. 16, Underhill tried to contact the agency she believed was holding her debt, but could not find a number that was still in service.

"I had absolutely no idea [the debt was moved]," she said. "Basically, I'm back to Square 1 with this new collections agency."

For now, she will stay sparingly at her boyfriend's house. She wants to know how this was allowed to happen, and if Newfoundland Power was in the right.

Without another electricity provider to turn to, Underhill says the power of a monopoly is forcing her into homelessness.

"I would want my money back if someone had owed me that much," she admitted. "But threatening to make people homeless in order to get that money just isn't the way to do business."