Attorney General Kwame Raoul has secured a $12 million settlement with Direct Energy Services LLC, addressing allegations that the alternative retail electric supplier engaged in misleading business practices affecting Illinois consumers. The settlement, entered by the Cook County Circuit Court, provides restitution for eligible customers who received electricity services from Direct Energy between 2013 and April 2025. The amount of restitution will be based on customers' electricity usage during the period of service.
Raoul emphasized the importance of accountability for companies like Direct Energy. "Companies like Direct Energy must be held accountable for taking advantage of consumers with misrepresentations and false promises of lower prices," stated Raoul. "My office is committed to protecting Illinois residents from such deceptive practices and preventing people from being misled into overpaying for the energy they need."
The Attorney General’s complaint against Direct Energy highlighted violations under the Illinois Consumer Fraud and Deceptive Business Practices Act. These included enrolling consumers without consent and charging rates significantly higher than those of default public utilities.
In addition to financial restitution, the settlement imposes regulations to curtail Direct Energy's operations. The company is barred from marketing or enrolling customers in Illinois for a year and must adhere to permanent restrictions against several deceptive practices. These include unauthorized enrollments, failing to secure consent for telemarketing, misrepresenting potential savings, misrepresenting affiliations with utilities or government, and several others.
This settlement is among various measures Raoul has taken against alternative energy suppliers in Illinois. In January, Raoul filed a suit against Spark Energy LLC, and last year, he secured judgments against Palmco Power IL and Teleperformance Colombia SAS.
Raoul’s office remains active in litigation and investigations targeting deceptive practices by energy companies. Recent legal actions include suits against Southeast Energy Consultants LLC and Residents Energy LLC, among others.
The Home Energy Affordability and Transparency (HEAT) Act, initiated by Raoul, continues to strengthen consumer protections and oversight of energy suppliers. Enacted in January 2020, the HEAT Act provides the Attorney General’s office with enhanced authority to prosecute errant suppliers and facilitate consumer restitution.
Handling the Direct Energy case for Raoul's office are Consumer Protection Division Chief Susan Ellis, Assistant Chief Deputy Attorney General Thomas J. Verticchio, and Public Interest Counsel Darren Kinkead, supported by Illinois-based law firms Edelson PC, Hughes Socol Piers Resnick & Dym, Ltd., and Miner, Barnhill & Galland, P.C.