Illinois House Bill HB1284

Illinois 2025-2026 Regular Session

• Introduced: 1/13/25
• Refer: 1/28/25
• Refer: 2/11/25
• Refer: 3/21/25

Caption

UTILITIES-ALTERNATIVE SUPPLIER

Impact

One of the significant provisions of HB 1284 is the requirement for alternative gas and electric suppliers to secure explicit consumer consent before renewing contracts that would increase charges. Suppliers must provide clear notice and disclosure of the new terms, allowing consumers a window of 30 to 60 days to review and consent to any changes prior to the expiration of their current agreement. This change is expected to enhance consumer rights by preventing automatic renewals under potentially unfavorable terms, thereby increasing transparency within the energy market and promoting fair competition among suppliers.

Summary

House Bill 1284 aims to amend the Public Utilities Act and the Consumer Fraud and Deceptive Business Practices Act in Illinois. This legislation specifically targets alternative retail electric and gas suppliers, by prohibiting them from offering incentive-based compensation to individuals involved in in-person solicitation or telemarketing. The intention behind this ban is to eliminate potential conflicts of interest and deceptive practices that may arise from such compensation structures, ensuring that consumers receive unbiased information when making choices about their utility service providers.

Contention

While supporters argue that these changes will protect consumers from aggressive marketing practices and ensure more straightforward relationships with utility providers, opponents of the bill might view these regulations as overly restrictive. Concerns may arise over how these limitations could affect the ability of alternative suppliers to effectively market their services. Critics may argue that this could stifle competition and reduce the variety of options available to consumers, which could negatively impact pricing and service quality in the overall utilities market.