The BBB predicts that consumers can expect to see a variety of consumer-fraud schemes, such as:

• "Shocking," similar to "slamming" in which some consumers are switched to another telephone service carrier without their explicit consent.
• Deceptive ads, such as "two free weeks," which might include electrical costs but not the fixed transmission and distribution costs, which can represent two-thirds of an electricity bill.
• Exorbitant hidden fees charged for folding an electric bill into a mortgage payment, or "inflation protection" with a fixed long-term rate.
• Misleading claims about the source of electrical power, claiming it is "green" (from water, wind, or solar) rather than pollutive (from coal or nuclear sources).
• Pyramid or "Ponzi" schemes in which consumers are recruited to invest in a fly-by-night power provider. The profits actually come from other investors until the scheme collapses.
• Online investment schemes with fabricated press releases, impressive looking charts and so-called "inside information" about what is in fact, a bogus deal.
• Work-at-home schemes that promise "guaranteed," get-rich-quick income, such as $25,000 per month, for very little effort (many suspicious work-at-home offers feature a common requirement of up-front money; in most instances you're paying for a job that probably does not exist).

To avoid electricity deregulation fraud, ask for printed material so you can evaluate any offers. Read the fine print and get everything in writing. Brochures or solicitation material should include a clear description of kilowatt prices and billing procedures. Do not allow a sales person to pressure you into making a switching decision immediately. Finally, get independent advice. Contact your Better Business Bureau to get a report on a company.

Copyright 2001. CBBB. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed without the expressed written consent of the author.