Watchdog: Utility customers are being ripped off by hidden fees

A public utility watchdog says customers are being ripped off by energy suppliers that hide fees on a utility bill, making it seem like the additional charge should be there. (Photo courtesy Pixabay)

By Cole Lauterbach/Illinois Radio Network

SPRINGFIELD – Consumer advocates say power suppliers are ripping off customers by hiding fees on their utility bills. They want a new law forcing them to put their charges on a separate bill.

When you sign on to a plan offered by a door-to-door salesman or a telemarketer, they include their charges right on the utility bill.

“That makes it really difficult for customers to spot bad deals,” Citizens’ Utility Board spokesman Jim Chilsen. “We’ve seen electric customers pay double, triple, or more than the utility rate because they got lured into an offer with an unregulated supplier.”

Electric customers have lost more than $320 million with alternative electricity suppliers rather than just going through their utility, Chilsen said.

Customers are speaking out. Of the 55 electric suppliers listed on ICC’s Retail Electric Supplier Complaint Scorecard, 32 suppliers had a 3-star ranking or less out of 5 possible stars.

CUB and others want lawmakers to pass legislation, sponsored by state Rep. Marcus Evans Jr., D-Chicago, that would make the companies keep their charges on a separate bill.

“No longer would they be able to hide their bad deals on utility bills,” Chilsen said.

The legislation would not force suppliers that have deals with municipalities to bill separately.

Beyond the restrictions for alternative suppliers, Evans’ bill would allow local governments in central and southern Illinois to enter into aggregate supplier agreements with gas providers, something that’s only allowed in the northern third of the state. This would allow the municipality to negotiate a potentially lower rate than the utility provider is offering individual households. There are times, however, that the aggregate rate is higher than the utility rate.

Consumers with questions should visit CUBactioncenter.com.

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