Alberta consumers will be protected from any unethical marketing practices once the deregulation of electricity switches on in Alberta in January 2001. Alberta Government Services has developed tough rules to ensure fairness and consumer protection as part of the restructured electricity marketplace.

"We take the protection of consumers very seriously, which is why we have put in place very strict rules that we will enforce," said Government Services Minister Patricia Nelson, whose department is responsible for consumer services.

The rules are outlined in the Electricity Marketing Regulation, which is under the Fair Trading Act. The 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 currently set at $1 million, and comply with a 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 the consumer that he may cancel the contract within 10 days for any reason and without penalty.

Government Services has also developed a tipsheet for Albertans that explains their rights and responsibilities, including the option to remain with their current electrical company.

"It is important that Alberta consumers know we have taken steps to ensure they are protected from any unprofessional marketing tactics when they are deciding on an electricity provider," added Nelson.

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Contact:
Ed Greenberg, Alberta Government Services Communications
780-415-6051 - 780-718-5699 (cell)

Legislation:

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

Licences:

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

Identification card:

1. 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:

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

Disclosure statement:

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

 Collection of fees: