As pressure increases to reduce the size of government and decrease industry regulations, many states have begun deregulating retail electricity rates. Prior to deregulation, retail electricity suppliers had to file the specific kilowatt per-hour rate they would charge electricity consumers, and they were forbidden from charging more than that rate. However, many states, including New York, Connecticut, New Jersey and Pennsylvania now allow independent, alternative electricity suppliers to compete against established utilities like Connecticut Light and Power and ConEd by purchasing electricity at wholesale rates on the open market, which they then sell to consumers at market, and theoretically lower and more competitive, rates.
It turns out that deregulation is not the panacea for which state legislatures hoped. While costs for some electricity to consumers who switched to alternate suppliers were initially slightly lower, many consumers have seen their bills skyrocket after leaving the established utilities. In fact, suppliers such as Connecticut Light and Power have recently instituted lower rates across the board as a result of lower energy costs, making it even more difficult for the alternative suppliers to offer competitive prices.
In response, some alternative suppliers have apparently turned to unfair and potentially deceptive practices to maintain their exorbitant profits. In particular, Meiselman, Denlea, Packman, Carton & Eberz, P.C. is investigating whether Energy Plus, LLC is deceiving consumers as to its rates. Energy Plus claims that its rates are based on the “market.” However, this may be a deceptive misrepresentation, as Energy Plus’ rates are in fact substantially higher, sometimes as much as 50%, than the rate other suppliers are charging. At the very least, Energy Plus fails to inform consumers that their electricity rates are substantially higher than market rates.
If you or someone you know is a customer of Energy Plus, LLC, or any other independent supplier you believe may have misrepresented the true amount of their electricity rates, please contact us to discuss your legal options.