Connecticut alternative electricity supplier Energy Plus Holdings agreed to a $4.5 million settlement on Thursday to resolve claims of deceptive marketing practices.
The settlement stems from complaints that Energy Plus misled would-be customers that they would receive additional benefits aside from competitive electricity prices. Complaints also claimed the company more than doubled its variable rates to customers, and customers had a difficult time obtaining information about those rates.
The $4.5 million will go to the Public Utilities Regulatory Authority, which was investigating the complaints along with the attorney general and the Office of Consumer Counsel. The money will be used for consumer assistance, education, and enforcement activity related to competitive electric suppliers.
The complaints against Energy Plus and other electric suppliers changed the way Connecticut viewed and regulated the entire industry, which offers competitive rates for the generation portion of customers’ utility bills in place of the standard service default utility rate.
Because of the complaints, the Connecticut General Assembly this year passed stricter regulations requiring suppliers to be more open with their pricing and nicer to customers. The legislature also slotted money for PURA to enforce the rules regarding the industry.
