Electricity Marketer Charged for Misrepresentation

EDMONTON, October 21, 2002 - An electricity marketer faces seven charges under the Fair Trading Act for breaching the province's code of conduct while attempting to sell contracts on behalf of EPCOR Energy Services (Alberta) Inc.

Alberta Government Services laid the charges after investigating allegations that _________ had made a number of false statements to three Red Deer businesses including:

  • Contracts needed to be signed immediately;
  • An impending war could result in huge price increases;
  • Electricity prices, outside of a fixed-term contract, could rise to 18 cents per kilowatt-hour;
  • A competitor faced financial difficulties and it was not a legitimate player in the market.

In one case, the marketer also refused to produce identification when it was requested.

"Any willful attempt to mislead Albertans in the electricity marketplace will not be tolerated," said Government Services Minister David Coutts. "We've put a strict code of conduct in place for marketers to follow and make no mistake: we're prepared to enforce it."

EPCOR suspended the marketer immediately after being notified of the department's concerns. _______ first court appearance is scheduled in Red Deer Provincial Court on November 22, 2002.

Albertans who have concerns with any electricity contract or a marketer's methods are invited to contact Alberta Government Services' Consumer Information Centre toll-free at 1-877-427-4088.

In Alberta, all electricity marketers must comply with a code of conduct, outlined in the Fair Trading Act's Electricity Marketing Regulation. An electricity marketer is anyone who sells electricity through a fixed-term contract to consumers using less than 250,000 per kilowatt-hour of electricity per year.

Consumers also have the right to compare prices. Marketers must give consumers the time, beyond the initial contact, to read all documents before making a decision.

In fact, residential and farm consumers can stay with their existing suppliers and pay for electricity at the regulated rate until December 31, 2005, while small businesses have until the end of 2003. After these dates, consumers who have not entered into a marketing contract will have the option of receiving electricity from their existing suppliers at a rate tied to the monthly Power Pool price.

Albertans may cancel any electricity contract within 10 days of signing it, for any reason and without paying a penalty. These cancellation rights must be disclosed on the contract.

The Fair Trading Act's penalty provisions include fines of up to $100,000 or up to three times the amount obtained by the offence and/or up to two years in prison upon conviction.

For more information on the rules electricity marketers must follow, a tip sheet called Electricity Marketing: What Consumers Should Know is available through www.gov.ab.ca/gs (click on Forms and Publications) or the Consumer Information Centre.

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Media enquiries may be directed to:

Megan Parker - Alberta Government Services - (780) 415-6051

 

Backgrounder

Code of conduct

Electricity marketers must follow a 17-point code of conduct. Key components include:

Marketers must:

  • State plainly they are selling electricity and show identification.
  • Make timely, accurate and truthful comparisons on every aspect of the contract, including price.
  • Ensure data used to support a claim is reliable.
  • Ensure all advertising materials reflect actual conditions.

At the same time, marketers cannot:

  • Exert undue pressure.
  • Lie to or mislead consumers.
  • Counsel a consumer to breach a contract with another marketer.
  • Approach consumers between the hours of 9 p.m. and 8 a.m.

Say something is less expensive when it cannot be proven.

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Copyright(c); 2002 Government of Alberta