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Identifying and Avoiding Alternative Electric Supplier Scams in Illinois
Illinois' deregulated energy market offers genuine opportunities for savings, but it also attracts bad actors looking to exploit unsuspecting businesses and consumers. Learn to identify predatory practices, verify legitimate suppliers, and protect your business from energy scams.
Published: December 26, 2025 | Reading time: 11 minutes
Illinois Energy Deregulation: Unmasking the Truth About Predatory Supplier Scams
Energy deregulation in Illinois created a competitive market where businesses can choose their electricity supplier. While most alternative retail electric suppliers (ARES) are legitimate companies offering real value, the market has also attracted predatory practices that harm consumers.
How Deregulation Creates Opportunity for Scams
The complexity of energy markets and bills creates an environment where deceptive practices can thrive:
- Confusing Bills: Many consumers don't fully understand their energy bills, making it easier for scammers to hide unfavorable terms
- Opaque Pricing: Variable rates, pass-through charges, and hidden fees can obscure true costs
- Door-to-Door Sales: High-pressure in-person sales tactics can push people into hasty decisions
- Utility Impersonation: Scammers sometimes claim to represent ComEd or Ameren to gain trust
Common Scam Types in Illinois
Bait and Switch
Advertising a low introductory rate that quickly increases after enrollment. The fine print reveals the "promotional" nature of the initial rate, but consumers don't realize this until their bills spike.
Variable Rate Traps
Enrolling customers in variable-rate plans without clearly explaining that rates can increase dramatically. When wholesale prices spike, customers face shocking bills.
Slamming
Switching customers to a new supplier without authorization. This can happen through forged signatures, misleading scripts, or outright fraud.
Utility Impersonation
Representatives claim to be from ComEd, Ameren, or another utility to gain access to account information, then enroll customers with third-party suppliers.
The Real Cost of Scams
According to the Illinois Commerce Commission, predatory supplier practices have cost Illinois consumers millions of dollars in overcharges. Common financial impacts include:
- Rates 2-3 times higher than utility default rates
- Early termination fees trapping customers in bad contracts
- Hidden charges that inflate bills beyond quoted rates
- Time and stress spent resolving disputes
The 7 Telltale Signs: How to Instantly Spot an Alternative Electric Supplier Scam
Protect your business by recognizing these red flags that indicate a potentially predatory supplier:
1. High-Pressure Tactics
Legitimate suppliers don't need to pressure you into immediate decisions. Be wary of:
- "This offer expires today" or "You must decide now"
- Refusal to provide written documentation for review
- Aggressive door-to-door sales representatives
- Threats about what will happen if you don't switch
2. Claims of Utility Affiliation
ComEd and Ameren do not sell electricity supply door-to-door. If someone claims to represent your utility and is offering supply deals, they're misrepresenting themselves.
Reality: Your utility handles delivery only. Supply shopping is separate.
3. Rates That Seem Too Good to Be True
If a rate is dramatically lower than competitors, investigate:
- Is it an introductory rate that increases?
- Are there hidden fees or pass-through charges?
- Is the company financially stable?
4. Requests for Sensitive Information
While suppliers need your account number for enrollment, be suspicious of requests for:
- Social Security numbers (rarely needed for commercial accounts)
- Credit card information for "deposits" before service
- Bank account access
5. Vague Contract Terms
Legitimate suppliers provide clear contracts. Red flags include:
- Unclear rate structures or pricing methodology
- Missing contract length or end date
- Vague early termination provisions
- Refusal to provide contract copy before signing
6. Unlicensed Operations
Every legitimate ARES must be licensed by the Illinois Commerce Commission. If you can't verify the license, don't proceed.
7. Poor or No Online Presence
Legitimate suppliers have professional websites, verifiable contact information, and a track record you can research. Lack of online presence is a warning sign.
Your Scam-Proof Checklist: Verifying and Choosing a Legitimate Illinois Energy Supplier
Before signing any supplier agreement, complete this verification checklist to protect your business:
Step 1: Verify ICC Licensing
Every legitimate Alternative Retail Electric Supplier must be licensed by the Illinois Commerce Commission.
- Ask for the supplier's ICC certificate number
- Verify the license at the ICC website
- Confirm the company name matches exactly
- Check that the license is current and in good standing
Step 2: Check Complaint History
Research the supplier's track record:
- Search ICC complaint records for the company
- Check Better Business Bureau ratings and complaints
- Search online reviews and consumer forums
- Ask for references from other commercial customers
Step 3: Get Everything in Writing
Before making any commitment:
- Request a complete written contract for review
- Take time to read all terms and conditions
- Clarify anything you don't understand
- Keep copies of all documents
Step 4: Compare to Multiple Offers
Get quotes from several licensed suppliers:
- Obtain at least 5-7 competitive quotes
- Compare total costs, not just per-kWh rates
- Evaluate contract terms across offers
- Be suspicious of outliers in either direction
Step 5: Understand Your Rights
Illinois law provides consumer protections:
- Rescission Period: You typically have a right to cancel within a few days of signing
- Clear Disclosure: Suppliers must clearly disclose material terms
- Complaint Process: The ICC investigates complaints against suppliers
- Unauthorized Switching: Slamming is illegal and can be reversed
Already Signed Up? Your Step-by-Step Guide to Reporting Scams & Switching Safely
If you believe you've been victimized by a predatory supplier, take these steps to protect yourself and help prevent others from falling victim:
Immediate Actions
- Review Your Contract: Locate and carefully read the agreement you signed
- Document Everything: Save all communications, bills, and marketing materials
- Check Your Bill: Compare billed rates to what was promised
- Calculate Impact: Determine how much extra you've paid
Filing a Complaint
Report predatory practices to the appropriate authorities:
Illinois Commerce Commission
The ICC regulates alternative suppliers and investigates complaints:
- File a complaint online at the ICC website
- Include copies of contracts, bills, and communications
- Document what was promised versus what happened
- The ICC can order refunds and take enforcement action
Illinois Attorney General
The AG's Consumer Protection Division handles fraud complaints:
- File a complaint if you believe you were defrauded
- Report utility impersonation and identity theft
- The AG can pursue legal action against scammers
Your Utility
ComEd and Ameren can help with certain issues:
- Report suspected unauthorized switching (slamming)
- Request return to utility default service
- Ask about any utility-sponsored complaint processes
Switching to a Legitimate Supplier
Once you've addressed the problem, find a better supplier:
- Wait for any rescission period or contract disputes to resolve
- Gather quotes from verified, licensed suppliers
- Use the verification checklist to evaluate options
- Enroll with a reputable supplier following proper procedures
- Monitor your first few bills to verify correct rates
Find a Legitimate Energy Supplier
Work with verified, licensed suppliers to get competitive rates without the risk of scams. Our partner network includes reputable suppliers serving Illinois businesses.
Frequently Asked Questions
Visit the Illinois Commerce Commission website and search for the supplier by name. All licensed Alternative Retail Electric Suppliers are listed in their database. If you can't find the company, they may not be legitimately licensed to operate in Illinois.
This is called "slamming" and is illegal. Contact your utility immediately to report the unauthorized switch. File complaints with the ICC and Attorney General. You may be entitled to return to your previous rate and receive refunds for any overcharges.
Illinois law typically provides a rescission period during which you can cancel without penalty. This is usually a few business days after signing. Check your contract for the specific terms. If you're within this period, notify the supplier in writing immediately.
Only provide your account number when you've decided to enroll with a verified, licensed supplier. Never give it to unsolicited callers or door-to-door salespeople. Legitimate enrollment processes give you time to verify the supplier before providing sensitive information.
Conclusion: Stay Vigilant, Stay Protected
Illinois' deregulated energy market offers real opportunities for savings, but it requires vigilance to avoid predatory practices. By recognizing warning signs, verifying supplier credentials, and understanding your rights, you can confidently navigate the market and find legitimate suppliers offering real value.
Key takeaways:
- Never make immediate decisions under pressure
- Always verify ICC licensing before signing anything
- Get complete contract terms in writing
- Compare multiple offers to identify outliers
- Report suspected scams to protect yourself and others
Businesses in Chicago, Aurora, Rockford, and throughout Illinois can shop for commercial electricity confidently by following these protective measures.