Does your furnace need to be replaced?
October 27 2009 by Ellen Roseman
You rely on your furnace to work well for about six months a year. You don’t want to it to get too old and turn into a safety hazard.
You try to prolong its life by buying a plan that includes furnace inspection or maintenance once a year, plus emergency calls and visits if there’s a breakdown. Direct Energy sells them as do others (such as AtlasCare, my contractor).
But can you rely on the technician who comes to your house for an annual furnace check? I wonder when I hear stories like this one, which I wrote about last Saturday.
I received many comments from readers and I’m helping those who need it. Meanwhile, I’m concerned about people being rushed into replacing furnaces without the proper checks, especially when told there’s a salesman in the area who can write up an order right away. Seems like a conflict of interest.
I also heard from someone hoping to get a $100 rebate from Enbridge Gas for installing a new furnace, only to be told the rebates were cut off early. I helped him get the rebate and also got a response from Enbridge about what happened (see below).
SP
Oct 27 2009
I am writing to ask for your help in obtaining a $100 rebate offered to Enbridge customers who purchased a high efficiency furnace.
The coupon I received from Enbridge said the rebate offer was on until Nov. 30. My furnace was installed by Sears on Sept. 16.
But my application for this rebate was returned to me with a letter stating that “due to overwhelming and unprecedented demand for our furnace rebate program, Enbridge Gas Distribution Inc. ended this program on Sept. 7, 2009.”
I am hoping that I am not the lone voice in the suburbs who finds this kinda tacky. I would have hoped that Enbridge was encouraged by customer response to this rebate program.
I felt like I was helping do my part by getting a more energy efficient furnace, Enbridge should question whether they are doing theirs.
Thank you (if for no other reason than the opportunity to vent).
Debbie Boukydis, Enbridge Gas spokeswoman
Oct 27 2009
Thank you for bringing the customer’s concern about the Enbridge gas furnace rebate cancellation to my attention.
By way of background, we have been running a high efficiency furnace rebate program at Enbridge for about six years.
Following a decision by Natural Resources Canada to make high efficiency furnaces the new minimum standard effective Jan. 1, 2010, we had planned to end the current $100 rebate for high efficiency furnaces at the end of 2009.
As well, our research shows that the vast majority of furnace purchasers would choose a high efficiency furnace even without Enbridge’s incentive.
Our furnace rebate program, with a budget set for 10,500 participants, was approved by the Ontario Energy Board at the beginning of 2009. The program, however, quickly attracted over 27,000 participants, almost three times the budgeted number.
We made the decision to honour those rebate applications but end the program early, as we would have been significantly over budget and risked impacting other energy efficiency programs due to budget shortages.
The original qualifying dates for the furnace rebate program indicated that equipment had to be purchased and installed by Nov. 30th and the rebate postmarked submission by Dec. 15th.
While the original coupon stated that we reserved the right to cancel the rebate at any time without notice, we decided to give customers almost two months’ notice that the program was ending early.
Our revised qualifying dates were that equipment had to be purchased and installed by Sept. 7th and the rebate postmarked by Sept. 22nd.
We communicated the deadline change to our customers in the following ways:
- Website Rebate Coupon Updated with New Date - July 29.
- Flash Fax for HVAC Contractors - July 29.
- Newspaper ads - Aug. 1 and 8 (Toronto Star, Barrie Examiner, Welland Tribune, Niagara Falls Review, Ottawa Citizen, St. Catharines Standard), Aug. 2 and 9 (Toronto Sun).
- New rebate coupons with the revised dates were printed and distributed personally to HVAC contractors by staff in early August.
- Rebate promotion removed from website - Sept. 23.
I understand that SP did not see any of the notices about the qualifying date changes and would have been surprised to learn that he was not eligible for the rebate.
We will contact SP and let him know that we will honour the $100 rebate.
Thanks again, Ellen.
HR
Oct 27 2009
Yesterday, I called Direct Energy for a service call after I noticed a small amount of water seeping out of the base of the furnace.
I was impressed when they arranged an appointment for this morning.
The serviceman arrived promptly at 9:00 a.m., inspected the furnace and informed me that both heat exchangers were cracked and carbon monoxide could be leaking into the vent system.
He also informed me that the entire furnace would have to be replaced and the costs were not covered by my “TOTAL HOME PROTECTION PLAN”.
He shut the furnace off and placed a tag on it with the notations “Cracked (defective) primary and secondary heat exchanger / sales to call.”
He arranged an appointment with a sales representative for this evening.
I recalled reading your article in last Saturday’s Star and after digging it out of the recycling bag and reading it again, I cancelled the sales call.
If my furnace does indeed have to be replaced, it is not going to be done by a company that sells me a total protection plan and then claims the necessary repairs are not covered.
It would seem that the unfavourable publicity arising from your article has not encouraged Direct Energy to change its manner of doing business.
I will now have to arrange for someone else to evaluate the problem and given the season, it is difficult to examine alternative solutions in a cautious and unhurried manner without the risk of freezing to death!
I really appreciate your columns and I am particularly grateful for your bringing this situation to my attention.
It is journalism like this that has kept me a subscriber to The Star for over 50 years.
Thank you and keep up the good work!
HP
Oct 27 2009
This summer, we scheduled a furnace cleaning with Direct Energy (covered under our Heating Protection Plus Plan).
Upon arrival, the rep from DE proceeded to open a small hatch inside the furnace, stuck a small mirror inside and said the heat exchanger (HEX) was cracked. He indicated there was no point in cleaning the furnace because he had to “red tag” it.
So, after providing me with an estimate of $1,050 for the HEX repair (he indicated the part was under manufacturer’s warranty) and literature on new furnaces Direct Energy was promoting, the rep left.
Although my wife and I were relieved that this potentially deadly issue had been caught, I was slighty suspicious, given how quickly the assessment was performed and what came across as an opportunistic visit.
I called up the furnace manufacturer who confirmed the HEX was, in fact, under warranty and referred me to an authorized dealer in my area (which quoted me a cost of $367 to replace the part). I was a bit upset.
Since our furnace was nearly 20 years old and because there are generous incentives currently being offered at various levels of government to install energy efficient furnaces, we decided to take the plunge (with our line of credit) and go for a new furnace.
The furnace was replaced yesterday by a trusted contractor that we had used at our other house. With the old furnace removed to the back yard, the installer asked why I thought the HEX was cracked.
I figured he was mistaken, so I asked him to show me. Other than signs of wear, no crack….and not just looking through the small hatch but at the fully exposed HEX from the top. I am furious!!!
I would not be the least bit surprised if this was a common theme with DE service. I’m wondering if any course of action is worth my time or effort.
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Ellen, thank you for your prompt response and for putting me in touch with Direct Energy. I was contacted the day after I sent my note to you and told DE would investigate.
One thing I made clear was that I was not expecting any financial compensation. Rather, I wanted assurances of checks and balances being in place to prevent this from occurring again.
I had a lengthy conversation this evening and was told that DE had reviewed my situation — and although capabilities exist to validate HEX failures (CO tests and camera inspections), they were not used for our furnace.
As for my question about what DE was doing to prevent this from occurring again, I was told the tech who visited my house would be provided with awareness of the testing capabilities that exist.
Frankly, I’m confident this has been a learning experience for only my wife and me.
I do not believe this is as simple as an awareness issue with a single tech. If anything, this behaviour probably goes unchecked by DE as it serves new business and revenue streams — albeit in a borderline unethical manner.
I’ve indicated that DE is welcome to close this case off as it appears to be larger than just the issue of my furnace.
Less furious (thanks to you), but still disappointed about having spent $3.5K without cause…and certainly not satisfied with DE.
Miro
Oct 31 2009
Is it worth changing a 15-year old gas furnace for a new high efficiency one (supposedly 95% efficient)? When does one start to see the savings?
Anonymous Direct Energy technician
Nov 2 2009
The following letter is of my own opinions and in no way is an official representation of Direct Energy. (I hope you’ll make that clear should this make it to print.)
This past Monday, I returned to the shop around midnight, after completing my shift, to find a photocopy of your recent “On Your Side” article hanging on our bulletin board.
On it was a hand written note saying “all techs read this” and some parts were marked with a highlighter pen.
I finally felt compelled to repond because I feel as though you’ve unjustly painted Direct Energy and its technicians an ugly colour.
Let me be clear. In no way, shape or form do I condone the actions or conduct of the technician you described in the first story.
But the truth, which I feel you failed to bring to light, is that Direct Energy continually makes every effort to ensure these types of incidents never occur.
You posed the question “Is it enough to give coaching to one individual?” in reply to the Direct Energy spokesman’s remarks. You may be suprised to learn that I beleive it is.
I say this because the technician chose to ignore protocol. At the district office I work out of, management holds weekly meeting with its technicians. In these meetings, we discuss such protocols and ensure everyone is up to date on the latest improvements - our goal being to always provide the best customer service possible.
In fact, SO MUCH emphasis is placed on documentation and communication with the customer that I’m sure the aforementioned tech probably got himself in a lot of hot water with his employer - and rightfully so - for dropping the ball.
I think I speak for most of my colleagues when I say that we don’t want our loyal customer base to be persuaded into thinking that one individual’s actions are indicative of what normally what takes place in such an incident.
In your second story, a couple was told a part would be ordered for them. They became upset when they learned that the part would not be a available for over two weeks. I would be upset too.
But remember, Direct Energy, in this case, is a third party that is providing a service. I know firsthand that sometimes parts have to be shipped internationally and it often takes a long time. We’re at the mercy of our suppliers.
Sorry that you’ll be left without heat, but we didn’t make your furnace break down. When you sign up for a protection plan, you’re paying for parts and labour coverage, not a guarantee that your furnace can be fixed. But when it can, we do everything we can to get you back up and running ASAP. On rare occasions, ASAP is two weeks.
Direct Energy’s policy, at least where I work, is to offer 2 space heaters, no charge, as a courtesy. If you were not offered that - you were wronged and have reason to be upset. But 2 heaters don’t heat a large home and I don’t think it’s unfair to suggest you pick up a couple more at your own expense.
Let me play Jerry Springer for a moment and I’ll close with a final thought: Direct Energy, like most big corporations, is an easy target.
You’ll always find consumers who’ve had bad experiences congregating on some forum, ready to partake in a rabid brow beating.
Just don’t forget - Direct Energy is made up of normal people, just like you. We’re all consumers, just like you. (You should hear me go off on Rogers!!) Most of us take pride in doing our jobs well, just like you. Oh, and Ellen, we are also “on their side”, just like you.
lou
Nov 8 2009
This is not a new problem. We had this problem about 5 - 6 years ago in the dead of winter. There was a squeak in the furnace so we decide to use our service plan and call for a repair.
The furnace was only about 12 years old but within seconds of arriving the technician said we had a cracked heat exchanger and red tagged the furnace. When we asked to see the crack, he quickly pulled out tin shears and cut into the sheet metal to show us the so called crack. When he couldn’t find it, he pointed a raised area on top of the heat exchanger that was in no way cracked nor would it have been visible from his original inspection.
We had another company come in and check the exchanger and they could not find anything wrong with it but since the technician had cut into the metal, the furnace no longer met CSA standards and would have to be replaced.
Not surprisingly we heard from Enbridge within a short time after the red tagging offering us a new furnace. Although it was the dead of winter, we made a few phone calls and found another supplier with the exact same replacement furnace but at many hundres of dollars less.
I guess some things never change.
MC
Nov 25 2009
I noticed two charges for a Direct Energy Heating Protection Plan on my bills, one for the regular plan and one for an upgrade plan that included annual cleaning.
I called and the problem was rectified immediately. I chose to keep the extended plan and scheduled a cleaning call for this afternoon as my wife would be home.
Ours is an older furnace and is due for replacement, but it does have some life left in it.
I received a call an hour ago from my wife saying the Service technician had turned on the furnace and checked for CO levels, which is standard practice. He said the readings were over 50 ppm and he would have to shut down and tag the furnace as unsafe.
Luckily my wife and I have both been through this scenario –also with a Direct Energy technician last year - so she knew that the furnace is supposed to run for 5 minutes or so and then be tested.
Last year’s technician reluctantly agreed to the retesting, found the levels had dropped to almost 0 and left without further ado.
This year’s technician refused to do this and had to be coerced into calling his supervisor, who okayed the retest.
Of course, the CO readings dropped to 0 ppm, at which point the technician started probing into the vents in other areas of the basement. He found some low levels of CO, 3 to 7 then to 25 ppm, but couldn’t recreate his over 50 reading.
I was still on the phone with my wife and at this point I passed along a message through her thanking the technician for his services and asking him to close up the furnace and leave. In my opinion, the readings were within acceptable levels.
I could hear him laugh at this and he called his supervisor again to say he had found some CO but couldn’t find the higher levels.
Being in the safety business, I’m quite familiar with gas testing procedures, but anyone who has ever had an emission test on their car knows that you warm up the car before the test to get a realistic CO reading.
We also have CO monitors on every floor that are set to alarm at 50 ppm.
Read into this what you will, but the similarities between these two technicians’ reactions once they found high CO levels on furnace start up and not mentioning a common retest process is suggestive.
The end result of this “furnace cleaning” is two upset and annoyed homeowners who will be in the market for a new furnace next year, as well as for a new service company for both our houses.
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Hi Ellen, thanks for forwarding my e-mail. Your name carries some weight at DE as one woman actually said “we take anything sent to Ellen Roseman seriously”.
In fact, they were inundated with forwarded e-mails, as I sent the original to a member of the Board of Directors of their parent company and a Vice-President of Media Relations in England.
We received calls from Customer service people on different floors of the same building, as well as from Customer Relations in England, all asking for the same information.
The problem was resolved last night after another technician was sent out. We were offered a 3 month rebate on our Home Protection Plan.
This wasn’t in my initial e-mail because it hadn’t happened yet, but the original technician had disabled the furnace after he was asked to leave. My wife found this out after she tried to turn it on and went downstairs and smelled natural gas. He had also slapped an “unsafe” furnace tag on it.
Anyway, the second technician came in, took CO readings in several locations, which were all 0 ppm to 1 ppm, inspected the condition of the furnace, put the cover back, pronounced it safe, took the unsafe tag and left.
Final note: as he was leaving, I asked him if the first technician should have known about running the furnace for awhile before testing and he said yes.
IM
Nov 25 2009
The federal Eco action program provides for rebates if you upgrade your furnace.
Normally you must buy an energy audit ($450-$575) before replacing the furnace in order to qualify for the rebate.
However, our compassionate Feds provide that if your furnace is red tagged during the heating season, you can have it replaced (which most of us would want to do as quickly as possible) and then arrange the audit. As long as you arrange it within 5 days, you can still qualify for a rebate.
Here’s the kicker. You only qualify for a rebate with the retroactive audit if your new furnace is 94 AFUE or higher.
So even though a 92 AFUE furnace qualifies for a rebate if you have a pre-replacement audit, it doesn’t if you foolishly went ahead and replaced it as soon as possible after red tagging — since it was, after all, in the midst of the heating season.
We were lucky in that it was only mid-November. We have a fireplace that filled the gap and we managed to get the furnace replaced within 4 days.
This is all detailed at http://www.Ecoaction.gc.ca.
One wonders if the government is going to try to blackmail us into higher AFUE than we can afford, why do they offer the rebate for less than 94 & at the same time discourage us from replacing our furnace ASAP?
Thanks for hearing my rant.