Illinois Attorney General Kwame Raoul recently announced a $3.5 million settlement with an alternative retail electric supplier known as Palmco Power IL, which operates under the name Indra Energy, or simply Indra. The hefty sum is a resolution to accusations that Indra engaged in deceptive tactics, duping customers into signing up for their pricier electricity services. This maneuver allegedly led to consumers shelling out millions in excess payments compared to standard rates offered by their public utilities.
The settlement dictates that restitution will be afforded to qualified Indra customers who were tethered to the company's electrical services for upwards of a month, starting back in October 2017. The refund calculation is dependent on individual electricity consumption. Yet, placed amidst the push for accountability, Indra's victims, with an unfortunate group being seniors, were lured by the false promise of lowered utility costs while they encountered a steeper financial climb.
"Thousands of Illinoisans were contacted by Indra with promises of lower electricity rates and overall cost savings on their energy bills. In reality, consumers ended up paying more in energy costs than if they had stayed with their public utility company," Raoul said. The Attorney General's office also asserted that Indra falsely claimed they were affiliated with ComEd or Ameren, a strategy allegedly employed to earn consumer trust.
Some consumers found themselves enrolled with Indra without having given their green light, colloquially known as "slamming." In addition to the financial recompense, the settlement carries an 18-month ban on Indra, prohibiting them from further marketing and enrollment of customers within Illinois. If the company resumes such activities post-ban, its operations will be under the watch of an independent monitor for two years. Part of the permanent injunction issued also includes barring Indra from engaging in the alteration of telemarketing recordings and stopping any misrepresentation that suggests consumers would financially gain from the switch.
Raoul's office has been active in the past as well, securing a prior $10 million settlement with Teleperformance Colombia SAS, TPUSA Inc., and Teleperformance SE for comparable accusations. These cases reflect the Attorney General's ongoing commitment to safeguarding Illinois residents against deceptive ARES practices. Additionally, this is enforced through the Home Energy Affordability and Transparency (HEAT) Act, which has been bolstering protections against dishonest energy supply contracts since its implementation in January 2020.
The recent cases were overseen and managed by the Consumer Protection Division Chief Susan Ellis, Assistant Chief Deputy Attorney General Thomas J. Verticchio, and Public Interest Counsel Darren Kinkead, with backing from Illinois-based law firms. The collective effort underscores a rigorous stance against misconduct that burdens the wallets of consumers and stains the competitive marketplace.
