HomeMay 14, 2014
Citizens Utility Board Warns Of 'Rip-Offs' As ComEd Default Rate Jumps
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The Illinois Citizens Utility Board warned customers, "about getting scared into bad deals" in light of headlines regarding a 40% increase in the ComEd default service rate on June 1.
Click here for details concerning June 1 ComEd default service rates
"Right now, it's a buyer-beware electric market in Illinois," CUB Director of Communications Jim Chilsen said. "We're getting complaints from power shoppers who thought they were signing up for one deal but then got slammed with some of the highest electric rates we've ever seen from alternative suppliers. Illinois' electric market is undergoing major changes right now, and our report shows that customers are paying dearly for it."
CUB noted that the most obvious change in the Illinois market has been increasing prices. "For example, a review of electric offers in May 2013 versus May 2014 found that variable rates, which can change on a monthly basis, have jumped about 21 percent to more than 9.14 cents per kilowatt-hour (kWh). As of May 7, these were the highest rates CUB found: Viridian: 14.99¢ per kWh; Viridian: 12.99¢ per kWh; Starion Energy: 12.99¢ per kWh; Ambit Energy: 10.96¢ per kWh; Xoom Energy: 10.09¢ per kWh."
"However, consumers have reported paying even higher prices. From January through April, CUB saw a 115 percent increase in complaints and inquiries about alternative electricity suppliers over the same period a year ago," CUB said.
CUB cited the examples of:
• "An Oak Park man who signed up with Nordic Energy Services said he was told the chance of the rate going up was not likely -- until it jumped from about a nickel per kWh to 21 cents per kWh."
• "A Chicago man signed up with Viridian for a rate that stayed at 5.2 cents per kWh for six months, but then changed to a rate that reached as high as 16 cents per kWh."
• "A Melrose Park woman with Major Energy said her rate jumped from an average of 7 cents per kWh to as high as 35 cents per kWh."
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