ICC issues significant changes to marketing rules for retail electric suppliers
The Illinois Commerce Commission (ICC) issued a First Notice Order on Thursday that made significant changes to the marketing rules allowed by retail electric suppliers in Illinois, targeting deceptive practices and providing protection to consumers.
The decision followed a review of marketing practices that the companies must follow and significantly enhances requirements for consumer protection. The review was encouraged by the aggressive marketing practices of retail electric suppliers during the “polar vortex” winter of 2013-2014 and subsequent consumer complaints to the commission’s Consumer Services Division.
“These new rules will deter retail electric suppliers from using deceptive marketing practices and protect consumers by providing them with clear information necessary to make informed decisions,” ICC Chairman Brien Sheahan said. “We thank commission staff for its work, and the attorney general and the Citizens Utility Board for their advocacy and assistance in strengthening these rules.”
The new rules will increase consumer protections by controlling additional marketing of sales solicitations and requiring third-party verification of door-to-door sales. It will also require that salespeople not be present during verification. Telemarketing sales calls and verification calls must be available to the ICC and retail electric suppliers will be restricted from utilizing utility names and logos.
Contract content and descriptions must be standardized and include a “Uniform Disclosure Statement” for all retail electric supplier solicitations under the order to allow consumers to compare offers more easily and make an informed decision. “Fixed rate” offers must describe only those rates that will not change, while a rate that can change must be labeled a “variable rate.” Suppliers are also required to follow restrictions when marketing energy labeled “renewable” or “green”.
The new rules also require that retail electric suppliers post their residential offers on the ICC’s PlugInIllinois.org website. The website will be maintained and promoted to inform consumers of their rights and options when shopping for energy. This will include comparisons between rates offered by retail electric suppliers, as well as the utility’s supply rate.
