Province also highlights support programs to assist Albertans from rising power costs due to world prices

The Alberta government has put in place strong protections to help rural Albertans make solid, informed decisions and to ensure that marketers follow clear guidelines when electricity deregulation begins on January 1, 2001.

The Electricity Marketing Regulation requires that all electricity marketers intending to sell to residential consumers, farms or small businesses be licensed with Alberta Government Services, post a security of $1 million, and comply with a 17-point code of conduct.

Under the code of conduct, marketers must show identification when approaching a consumer and must not lie to or mislead a consumer, take advantage of a consumer, or intrude on or exert undue pressure on a consumer. The regulation also requires that all contracts be in writing and include details of all costs and charges, as well as a statement informing consumers they may cancel the contract within 10 days for any reason and without penalty.

Consumers do not have to decide on an electricity marketer immediately. Residential customers and farmers (both small and large operations) can stay with their current provider for at least five years before deciding. Small businesses have three years to make a decision.

For more information about consumer protection, call Alberta Government Services' Consumer Information Centre toll free at 1-877-427-4088.

The recently announced tax refunds of $300 for every tax-filing Albertan over the age of 16 years, the $40 per month residential rebates on electricity bills for all of 2001 and the $50 per month rebate on natural gas bills from January to April 2001, are in addition to current Alberta government programs that assist rural Albertans with additional financial support.

Albertans relying on social programs are receiving energy refunds without their monthly benefits being affected.

Regulations passed by the provincial government ensure that the $300 Energy Tax Refund is not considered income under three provincial assistance programs: Supports for Independence (SFI, or welfare), Assured Income for the Severely Handicapped (AISH), and Alberta Widows' Pension. In addition, the refunds will not affect benefits under the Alberta Child Health Benefit or the Skills Development Program.

The rebates are also tax-free and not considered income for Alberta's seniors receiving assistance through the Alberta Seniors Benefit Program and the Special Needs Assistance for Seniors Program. The regulations were also changed to exempt the payments under the Alberta Energy Tax Refund Program from the "total annual income" for rent geared to income programs (e.g. community housing, seniors' self-contained) and as a source of income for the lodge program.

When it comes to our agriculture industry, Alberta's farmers suffering from low commodity prices and growing input costs, including power costs, are being assisted through the one-time Alberta Farm Income Assistance Program. Through this program, $350 million has been made available to help Alberta's farmers this year.

Farmers in the province may qualify for an additional electricity rebate for their farming operations, as well.

For more information about the Energy Tax Refund, call the Alberta Connects line toll free at 310-4455 or 1-877-599-5107.

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Contact:

Legislation:

• The regulation comes under the authority of the Fair Trading Act.
• The Fair Trading Act prescribes penalties that include:
  fines of up to $100,000 or up to three times the amount gained through the offence, whichever is more;
  up to two years in jail; or
  both a fine and jail term.

Licences:

• Electricity marketers must be licensed under the Fair Trading Act.
• An electricity marketer's licence must be renewed each year and costs $1,000.
• Licensees must also provide a security, currently set at $1 million.

Identification card:

• All people who work for an electricity marketer must carry an identification card, which must be produced at the request of a customer or potential customer, government investigator, or police.

Marketing contract:

• Must be in writing.
• Must include the following:
  name, address, phone number of marketer and customer;
  date electricity service begins;
  all charges associated with the contract;
  explanation that the consumer can inspect the marketer's records;
  a disclosure statement read and signed by the consumer.
• A consumer may cancel the contract within 10 days without cause or penalty.
• Marketers must give each consumer a copy of his/her signed contract.
• A contract cannot be longer than a term of five years.
• A consumer must consent in writing to the renewal of a contract.

Disclosure statement:

• Term of the contract.
• Termination conditions for the contract.
• Responsibility of consumer if he/she moves within the province.
• Statement of 10-day cancellation rights, including methods of canceling.
• Alberta Government Services phone number for more information.
• Provision for the consumer to sign and date the disclosure statement.

Collection of fees:

• A marketer can only collect fees or other charges from a customer after the delivery of electricity begins.

Comparing prices:

• A consumer can ask a marketer to provide a statement explaining what the cost of electricity and electricity services will be, based on up to three of the consumer's electricity bills from the past year.

Code of Conduct:

• Marketers must not:
  abuse a consumer's trust or take advantage of his/her lack of experience;
  exert undue pressure;
  lie to or mislead a consumer;
  promise things not contained in the contract;
  counsel a consumer to breach a contract with another marketer;
  be intrusive or contact consumers between 9 p.m. and 8 a.m.;
  say something is less expensive when it is not or when it can't be proven;
  show prices in a way that is misleading;
  use print that makes a contract difficult to read;
  switch a consumer's electricity supply without his/her consent in writing.

• Marketers must:
  identify themselves to the consumer and show ID card;
  make timely, accurate and truthful comparisons;
  ensure all advertising materials reflect actual conditions;
  ensure data used to support a claim is reliable;
  allow a consumer to cancel a contract if he moves out of Alberta.

Offences:

• It is an offence under the Fair Trading Act:
  not to produce an ID card with required information on demand;
  to have contracts that do not conform with the regulation requirements;
  to collect fees before delivery of electricity starts;
  not to have a consumer read and sign the disclosure statement;
  not to comply with the code of conduct.

When first contacting you salespeople must:

• tell you who they are;
• identify that they are selling electricity; and 
• show you their identification.

Get the company's name. Check with Alberta Government Services to find out if the company is licensed as an electricity marketer. Call toll free 1-877-427-4088 or check the Alberta Government Services website at www.gov.ab.ca/gs

Read the contract and advertising material carefully. Make sure you understand what you are buying and how much it will cost. Salespeople must not mislead you or misrepresent the facts.

Salespeople cannot collect any money from you until after you receive electricity under the contract.

Remember, you don't have to decide immediately. The marketer must give you time to read the documents, must not pressure you to sign, and must accept that you aren't going to make a decision right away. You can stay with your existing supplier and pay for electricity at the regulated rate until you decide.

Cancelling the contract

You may have up to four opportunities to cancel a contract for electricity or electricity services.

Code of Conduct

Electricity marketers must follow a 17-point code of conduct. The key components of the code are that marketers must:

• identify themselves to you and show their identification card
• make timely, accurate and truthful comparisons
• ensure all advertising materials reflect actual conditions
• ensure data used to support a claim is reliable
• allow you to cancel the contract if you move out of Alberta to a location in Alberta where the Electrical Utilities Act doesn't apply, such as the City of Medicine Hat.

Marketers must not:

• abuse your trust or take advantage of your lack of experience
• exert undue pressure
• lie to or mislead you
• promise things not contained in the contract
• counsel you to breach a contract with another marketer
• be intrusive or contact you between 9 p.m. and 8 a.m.
• say something is less expensive when it is not or when it can't be proven
• show prices in a way that is misleading
• use print that makes a contract difficult to read
• switch your electricity supply without your written agreement

All electricity marketing contracts must be written and include:

• the name, address, and phone number of the marketer and customer;
• the date electricity service begins;
• all charges associated with the contract;
• an explanation that the consumer can inspect the marketer's records; and
• a disclosure statement (see below).
• You may cancel the contract within 10 days without cause or penalty.
• Marketers must give you a copy of your signed contract.
• A contract cannot be longer than a term of five years.
• You must agree in writing to the renewal of a contract.

Before you sign the contract, you must sign and date the disclosure statement attached to the contract. Make sure you read and understand the statement. If the disclosure statement hasn't been completed and signed, the contract is invalid.

The disclosure statement identifies:

• when you can cancel the contract and under what conditions;
• what happens to the contract when you move to another location in Alberta;
• the term of the contract; and
• a caution about pricing.

Social assistance programs

Seniors' assistance programs

The Alberta Farm Income Assistance Program (FIAP) will provide in excess of $350 million for Alberta farmers this year. The immediate support package will have the following components:

• An Alberta Farm Income Assistance Program (FIAP) supplement payment of $6.00 per acre for all 1999 cultivated acres. This is in addition to the $4.29 paid in March 2000.
• A new pasture component to FIAP will pay $3.00 per acre on native pasture.
• Beekeepers will be eligible for a payment under FIAP of $3.00 per registered colony in 2000.
• A disaster loan program - the Alberta Farm Income Disaster Loan - will provide low interest loans with payment deferral to eligible farming operations.

Advanced payments of up to 50 percent of estimated eligible payments under the Farm Income Disaster Program (FIDP) for the 2000 crop year.