{"id":23982,"date":"2020-01-06T15:14:59","date_gmt":"2020-01-06T21:14:59","guid":{"rendered":"https:\/\/www.citizensutilityboard.org\/?page_id=23982"},"modified":"2020-01-06T15:14:59","modified_gmt":"2020-01-06T21:14:59","slug":"the-heat-act","status":"publish","type":"page","link":"https:\/\/www.citizensutilityboard.org\/the-heat-act\/","title":{"rendered":"The Heat Act"},"content":{"rendered":"<div class=\"wpb-content-wrapper\"><p>[vc_row][vc_column][vc_custom_heading text=&#8221;The Heat Act: a breakdown&#8221; font_container=&#8221;tag:h1|font_size:32|text_align:left&#8221; use_theme_fonts=&#8221;yes&#8221;][\/vc_column][\/vc_row][vc_row][vc_column][vc_column_text]<\/p>\n<h6><span style=\"font-size: 12pt\"><ul class=\"icon \"><li><i class=\"fa fa-caret-right\"><\/i> <a href=\"https:\/\/www.citizensutilityboard.org\/wp-content\/uploads\/2020\/01\/2020106_HeatAct.pdf\" target=\"_blank\" rel=\"noopener noreferrer\"><strong>PDF version of this fact sheet<\/strong><\/a><\/li><\/ul><\/span><\/h6>\n<p>[\/vc_column_text][\/vc_column][\/vc_row][vc_row][vc_column][vc_column_text]In a victory for consumers, Governor Pritzker has signed one of the nation\u2019s toughest consumer protection laws to fight rip-offs: the Home Energy Affordability and Transparency (HEAT) Act.<\/p>\n<p>In a statement, CUB praised Attorney General Kwame Raoul for leading the charge in favor of the \u201chistoric consumer protections from scams, rip-offs and bad deals peddled by alternative electric and gas suppliers.\u201d The bill took effect January 1, 2020.<\/p>\n<p>Here\u2019s a rundown of what the HEAT Act (Senate Bill 651) does:[\/vc_column_text][vc_separator color=&#8221;blue&#8221; align=&#8221;align_left&#8221;][\/vc_column][\/vc_row][vc_row][vc_column][vc_column_text]<strong>Consumer protection:<\/strong> The HEAT Act will stop alternative suppliers from automatically renewing a contract from a fixed rate to a variable rate (a rate that changes monthly) and then jacking up the price.<\/p>\n<p><strong>Explanation:<\/strong> CUB hears a lot of complaints from consumers who were lured into what they thought was a good deal\u2013typically a relatively low fixed rate\u2013only to see their bills skyrocket after that introductory price ended. The HEAT Act would require alternative suppliers to get a customer signature, either electronic or in writing, specifically for contracts to renew from a fixed rate to a variable rate. Also, starting Jan. 1, 2020, when alternative suppliers sign up consumers for contracts that automatically renew, they will have to give the potential customers a separate written disclosure titled \u201cAutomatic Contract Renewal,\u201d which will lay out details of the renewal process, including dates and ways to cancel. Plus, at the end of the initial term of fixed or variable contracts, the suppliers will have to give customers a disclosure outlining the terms of renewal and a side-by-side comparison of the current rate and new rate.[\/vc_column_text][vc_separator color=&#8221;blue&#8221; align=&#8221;align_left&#8221;][\/vc_column][\/vc_row][vc_row][vc_column][vc_column_text]<strong>Consumer protection:<\/strong> It would end termination (exit) fees for leaving a contract early on supply contracts for residential and small-business customers.<\/p>\n<p><strong>Explanation:<\/strong> As of January 1, exit fees were outlawed on contracts. Some years back, CUB and other consumer advocates fought for a $50 cap on exit fees\u2013and that was a victory. But outlawing the fees is an even bigger win. Now, customers won\u2019t be penalized for leaving a bad deal early.[\/vc_column_text][vc_separator color=&#8221;blue&#8221; align=&#8221;align_left&#8221;][\/vc_column][\/vc_row][vc_row][vc_column][vc_column_text]<strong>Consumer protection:<\/strong> It would require alternative supplier marketing materials, as well as utility bills, to clearly state the utility\u2019s current price, and the dates during which that price is valid.<\/p>\n<p><strong>Explanation:<\/strong> Imagine getting your monthly bill and scanning the supply section: \u201cXYZ Energy\u201d is charging you 15 cents per kWh. This might not mean anything to you\u2013but then you see the utility\u2019s price displayed on the bill and realize that XYZ is charging you double! The new law clarifies the state\u2019s competition rules, which now allow electric utilities to disclose the utility price and the rate a customer is paying if he or she is with an alternative supplier.<\/p>\n<p>Too often, customers enter into bad deals because they don\u2019t know what the utility is charging and, thus, can\u2019t see that they\u2019re getting ripped off. Both Ameren and ComEd are already beginning to display this \u201cPrice to Compare\u201d on their bills. But now, it\u2019s mandated to be on ALL gas and electric utility bills\u2013even those for customers who are with another supplier. Additionally, utility customer service representatives are now allowed to give people a list of frequently asked questions and provide educational materials developed by the Illinois Commerce Commission (ICC) and Attorney General. (Utilities have been hesitant to provide such information, concerned that this would violate competition rules.)[\/vc_column_text][vc_separator color=&#8221;blue&#8221; align=&#8221;align_left&#8221;][\/vc_column][\/vc_row][vc_row][vc_column][vc_column_text]<strong>Consumer protection:<\/strong> Suppliers will no longer be able to slap high rates on households getting energy-payment assistance through the Low Income Home Energy Assistance Program (LIHEAP) or a utility-run assistance program.<\/p>\n<p><strong>Explanation:<\/strong> This makes it a lot harder for companies going door-to-door, telemarketing or sending mailers to lure low-income customers into bad deals. If an alternative supplier does try to sign up a LIHEAP customer, the account will be flagged during the switching process and the switch won\u2019t be completed. There are two exceptions:<\/p>\n<p style=\"padding-left: 40px\">1) LIHEAP customers could still be signed up for a supplier through a Municipal Aggregation Program, which is a power deal that is negotiated between a municipality and an alternative supplier.<\/p>\n<p style=\"padding-left: 40px\">2) Suppliers could go to the ICC to get approval for a guaranteed savings plan to offer LIHEAP customers. According to the ICC, customers with alternative suppliers have lost nearly $800 million just since 2015\u2013and seniors and people on fixed incomes seem to be targeted the most. This law will protect low-income customers who can\u2019t afford for their bills to skyrocket. And it will protect LIHEAP funds from supplier overcharges, making sure the money available can help as many people as possible.<\/p>\n<p>[\/vc_column_text][vc_separator color=&#8221;blue&#8221; align=&#8221;align_left&#8221;][\/vc_column][\/vc_row][vc_row][vc_column][vc_column_text]<strong>Consumer protection:<\/strong> The bill gives the Illinois Commerce Commission (ICC) sharper teeth in dealing with alternative suppliers.<\/p>\n<p style=\"padding-left: 40px\">\u2022 Requires all gas and electric suppliers disclose to the ICC and Attorney General\u2019s office the exact rates they charge residential customers and whether that rate is fixed or variable. This will be used by the ICC to more accurately calculate consumer losses and savings with suppliers in its annual reports on competition. The ICC has been gathering that information for electric customers, annually, exposing hundreds of millions of dollars in losses since 2015, and now it will do the same for gas suppliers.<\/p>\n<p style=\"padding-left: 40px\">\u2022 Makes it easier for the ICC to require a badly-behaving supplier to enter a compliance plan, based broadly on information that causes the ICC to act. A supplier that does not comply with such a plan is in violation of the law.<\/p>\n<p style=\"padding-left: 40px\">\u2022 Requires suppliers doing in-person marketing\u2013door-to-door sales or pitches at kiosks in airports, for example\u2013to take out a $500,000 surety bond.<\/p>\n<p><strong>Explanation:<\/strong> The ICC passed consumer protections against electric rip-offs in 2017, and the agency is working on similar protections for gas customers this year. SB 651 enhances those efforts and gives the ICC sharper teeth.[\/vc_column_text][vc_separator color=&#8221;blue&#8221; align=&#8221;align_left&#8221;][\/vc_column][\/vc_row][vc_row][vc_column][vc_column_text]<strong>Other Protections:<\/strong><\/p>\n<p style=\"padding-left: 40px\">\u2022 All alternative gas and electric suppliers must make their prices easily accessible to the public by displaying them on their own websites, without requiring a login.<\/p>\n<p style=\"padding-left: 40px\">\u2022 All telemarketing and in-person marketing must be in the language the customer understands\u2013and if it isn\u2019t, the supplier is forbidden from switching that customer.<\/p>\n<p style=\"padding-left: 40px\">\u2022 All suppliers must conduct training of sales representatives engaged in in-person marketing, as well as \u201crefresher\u201d training every six months.<\/p>\n<p style=\"padding-left: 40px\">\u2022 Certain new ICC protections against misleading marketing (also known as Part 412) have been added to the Attorney General\u2019s authority under the Consumer Fraud Act, making it easier for the Attorney General to sue suppliers.<\/p>\n<p>[\/vc_column_text][vc_separator color=&#8221;blue&#8221; align=&#8221;align_left&#8221;][\/vc_column][\/vc_row][vc_row][vc_column][vc_column_text]The HEAT Act isn\u2019t the end of rip-offs, but it\u2019s a major step forward and a huge victory for consumers. Now the hard work begins. \u201cWe look forward to working with the Illinois Commerce Commission and Attorney General Raoul to help enforce these new rules and build a better market for Illinois consumers,\u201d CUB Executive Director David Kolata said.[\/vc_column_text][\/vc_column][\/vc_row]<\/p>\n<\/div>","protected":false},"excerpt":{"rendered":"<p>[vc_row][vc_column][vc_custom_heading text=&#8221;The Heat Act: a breakdown&#8221; font_container=&#8221;tag:h1|font_size:32|text_align:left&#8221; use_theme_fonts=&#8221;yes&#8221;][\/vc_column][\/vc_row][vc_row][vc_column][vc_column_text] [\/vc_column_text][\/vc_column][\/vc_row][vc_row][vc_column][vc_column_text]In a victory for consumers, Governor Pritzker has signed one of the nation\u2019s toughest consumer protection laws to fight rip-offs: the Home Energy Affordability and Transparency (HEAT) Act. In a statement, CUB praised Attorney General Kwame Raoul for leading the charge in favor of the \u201chistoric consumer protections from scams, rip-offs and bad deals peddled by alternative electric and gas suppliers.\u201d The bill took effect January 1, 2020. Here\u2019s a rundown of what the HEAT Act (Senate Bill 651) does:[\/vc_column_text][vc_separator color=&#8221;blue&#8221; align=&#8221;align_left&#8221;][\/vc_column][\/vc_row][vc_row][vc_column][vc_column_text]Consumer protection: The HEAT Act will stop alternative suppliers from automatically renewing a contract from a fixed rate to a variable rate (a rate that changes monthly) and then jacking up the price. Explanation: CUB hears a lot of complaints from consumers who were lured into what they thought was a good deal\u2013typically a relatively low fixed rate\u2013only to see their bills skyrocket after that introductory price ended. The HEAT Act would require alternative suppliers to get a customer signature, either electronic or in writing, specifically for contracts to renew from a fixed rate to a variable rate. Also, starting Jan. 1, 2020, when alternative suppliers sign up consumers for contracts that automatically renew, they will have to give the potential customers a separate written disclosure titled \u201cAutomatic Contract Renewal,\u201d which will lay out details of the renewal process, including dates and ways to cancel. Plus, at the end of the initial term of fixed or variable contracts, the suppliers will have to give customers a disclosure outlining the terms of renewal and a side-by-side comparison of the current rate and new rate.[\/vc_column_text][vc_separator color=&#8221;blue&#8221; align=&#8221;align_left&#8221;][\/vc_column][\/vc_row][vc_row][vc_column][vc_column_text]Consumer protection: It would end termination (exit) fees for leaving a contract early on supply contracts for residential and small-business customers. Explanation: As of January 1, exit fees were outlawed on contracts. Some years back, CUB and other consumer advocates fought for a $50 cap on exit fees\u2013and that was a victory. But outlawing the fees is an even bigger win. Now, customers won\u2019t be penalized for leaving a bad deal early.[\/vc_column_text][vc_separator color=&#8221;blue&#8221; align=&#8221;align_left&#8221;][\/vc_column][\/vc_row][vc_row][vc_column][vc_column_text]Consumer protection: It would require alternative supplier marketing materials, as well as utility bills, to clearly state the utility\u2019s current price, and the dates during which that price is valid. Explanation: Imagine getting your monthly bill and scanning the supply section: \u201cXYZ Energy\u201d is charging you 15 cents per kWh. This might not mean anything to you\u2013but then you see the utility\u2019s price displayed on the bill and realize that XYZ is charging you double! The new law clarifies the state\u2019s competition rules, which now allow electric utilities to disclose the utility price and the rate a customer is paying if he or she is with an alternative supplier. Too often, customers enter into bad deals because they don\u2019t know what the utility is charging and, thus, can\u2019t see that they\u2019re getting ripped off. Both Ameren and ComEd are already beginning to display this \u201cPrice to Compare\u201d on their bills. But now, it\u2019s mandated to be on ALL gas and electric utility bills\u2013even those for customers who are with another supplier. Additionally, utility customer [&hellip;]<\/p>\n","protected":false},"author":20,"featured_media":0,"parent":0,"menu_order":0,"comment_status":"closed","ping_status":"closed","template":"","meta":{"inline_featured_image":false,"footnotes":""},"class_list":["post-23982","page","type-page","status-publish","hentry"],"_links":{"self":[{"href":"https:\/\/www.citizensutilityboard.org\/wp-json\/wp\/v2\/pages\/23982","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.citizensutilityboard.org\/wp-json\/wp\/v2\/pages"}],"about":[{"href":"https:\/\/www.citizensutilityboard.org\/wp-json\/wp\/v2\/types\/page"}],"author":[{"embeddable":true,"href":"https:\/\/www.citizensutilityboard.org\/wp-json\/wp\/v2\/users\/20"}],"replies":[{"embeddable":true,"href":"https:\/\/www.citizensutilityboard.org\/wp-json\/wp\/v2\/comments?post=23982"}],"version-history":[{"count":0,"href":"https:\/\/www.citizensutilityboard.org\/wp-json\/wp\/v2\/pages\/23982\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.citizensutilityboard.org\/wp-json\/wp\/v2\/media?parent=23982"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}