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Consumer Alert - Rules for Electricity Marketers Protect Albertans

EDMONTON, October 10, 2002 - Alberta Government Services wants to remind Albertans of the rules in place for their protection when buying electricity from a marketer.

An electricity marketer is anyone who sells electricity through a fixed-term contract to consumers using less than 250,000 kilowatt-hours (Kwh) of electricity per year.

"All marketers are required to comply with a strict set of rules," said Government Services Minister David Coutts. "If the rules aren't being followed, consumers need to come to us so we can deal with it."

The rules are outlined in the Electricity Marketing Regulation, which took effect June 1, 2000, under the province's Fair Trading Act. Electricity marketers must be licensed, post a $1 million security and adhere to a code of conduct. Marketers must, for example:

• 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, a marketer 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.

All contracts must be in writing, spelling out the start date of service and all associated charges. Contracts must also disclose what happens when a consumer moves to another location in the province, the term of the contract, a caution about the nature of fixed-term pricing and the consumer's cancellation rights. Albertans may cancel any electricity contract within 10 days of signing it, for any reason and without paying a penalty.

Consumers 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 who have concerns about an electricity marketer's contract or methods are encouraged to contact Alberta Government Services' Consumer Information Centre toll-free at 1-877-427-4088.

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