Energy Plus Sued On Claims It Falsely Advertises Savings On Electricity

More than 25 Connecticut residents have written to me complaining about Energy Plus, a New York company, that is a supplier of electricity in the four state area.

Soon, these residents and others will have an opportunity to take legal action against the firm, as part of a series of suits seeking class action against the firm, headquartered in Philadelphia, Pennsylvania.

D. Greg Blankinship, of the White Plains law firm of Meiselman, Denlea, Packman, Carton & Eberz, has already brought a federal suit against Energy Plus in the U.S. District Court for the Southern District of New York.

Blankinship told me that the  accusations his firm is making in New York applies equally in Connecticut, where a similar class action request is being sought.

The New York suit claims that Energy Plus Holdings has “deceptive advertising and billing practices” that “have caused tens of thousands of New York consumers to pay considerable more for their electricity than they should have otherwise paid.”

Energy Plus declined to respond to individual claims, noting the case is in court, other than to say that an earlier complaint against the firm was tossed out for lack of proof.

“As I’m sure you can appreciate, we are unable to comment on any of the details because this is an active litigation.  However, I am able to say that we believe the allegations are without merit and a majority of the claims originally alleged by the Plaintiff were dismissed by the Court in initial motions to dismiss.  We follow all state guidelines and regulations in NY and in every other state in which we operate,” Paul Frantz, Chief Marketing Officer, wrote me.


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7 Comments on "Energy Plus Sued On Claims It Falsely Advertises Savings On Electricity"

  1. Greg Blankinship | July 16, 2012 at 10:04 am |

    Thanks to George for the great article. I would be very interested in hearing from any Connecticut residents that have Energy Plus electricity or gas service and whose rates are higher than expected. If you would like to discuss your legal options, please contact me:
    Meiselman, Denlea, Packman, Carton & Eberz, P.C.
    1311 Mamaroneck Avenue
    White Plains, NY 06831
    To ensure compliance with applicable rules of professional conduct, please note that this post might be construed by you as Attorney Advertising. Thank you, and I look forward to hearing from you.

    • alice dempsey | July 20, 2012 at 10:08 am |

      I switched to Energy Plus earlier this year because they offered a $75 upromise incentive if you remained a customer for 2 billing periods, and they also were offering a percentage of upromise credit on usage, in addition to lower rates than what I was currently paying. I found out very quickly that after two months, the rate got jacked up and I was paying significantly more. Fortunately I look at my bills and noticed this, so I was able to come out on top as I changed quickly and still kept the upromise credit, but they still got more out of me than they should have. Also, I think it was unethical for them to suddenly increase the rates. I can imagine that many people checked their bills after they first changed over, were initially satisfied that they were paying less, and then maybe they relaxed and didn’t check their bill as closely and had to pay more in the long run. FYI, when I dropped Energy Plus, they called me to try to convince me to come back to them. They offered me a “business rate” along with another cash incentive, but I was smart enough to ask how long their low rate was good for because they couldn’t offer me a fixed rate. I said I wasn’t going to allow them to take advantage of me again.

  2. philip patros | July 24, 2012 at 6:16 pm |

    Iwas offered Delta Air miles if I switched to Energy Plus. I did and for the few miles they gave my, they increased their price to more than double what others were charging. They led me to believe that along with the Delta miles I would receive a lower rate than what others were charging!!!

  3. Andrea Belous | August 14, 2012 at 12:42 pm |

    I have been with Energy Plus since October of 2009 and was enticed by their offer of lower rates plus 500 miles per month with American Airlines. However their rate have been progressivley rising until they are double the rates of most other suppliers. I was not aware that there were alternative suppliers at much lower rates until CL&P informed me of this.Periodically I have received mailings from them which have offered other incentives to sign with them but I was already enrolled. Now I have switched to another company but am really upset that I have been paying Energy Plus’s outrageous rates for so long.

  4. Tom Kennedy | August 31, 2012 at 12:31 pm |

    Energy Plus advertised that their rates would be cheaper than the published rates offered by The United Illuminating Company. I took them at their advertised word. In my UI billing statement I received today, they published their kWh rate along with the published rates of all available third party companies. The current published rate by UI is $.087/kWh. All the other companies’ rates are very close to that rate. The published rate for Energy Plus is $.0837/kWh. I looked at my bill and the rate I am being charged from Energy Plus is $.139/kWh. That’s a 59% over-charge. In my opinion, they have deceptively increased their prices knowing that the average consumer doesn’t know what a fair kWh rate is. We know fair gasoline prices because they are in plain view at all the stations. Here we are in the dark and vulnerable to deceptive practices. I called the company and they immediately reduced my “adjustable” rate to $.079/kWh. I got ripped for a couple of grand

  5. Charlene Woods | November 24, 2012 at 10:24 am |

    I switched to Energy Plus because they were offering points for Best Buy Reward program. When the rates started to increase, I called the company and talked to someone, as well as through email, and was told that I had no contract and that I could switch back to national Grid. I aksed how long it would take to make the switch and they said it was up to my supplier, National Grid. I then recived a bill for $150 dollars higher than my normal bills. I called National Grid and they said Energy Plus had not released my account to them. Energy plus chose to almost double my rates for the month because I had decided to switch back and they also did not credit my Best Buy program for that month. To top that off, I then recieved my next month’s bill and it still had not been switched back and again I was charged another $400. This was at least $150 more than my normal bill, and closed to $180 for two months in a row. I called my supplier and they told me it did not matter, I still needed to pay the bill. I think it is ridiculous that energy Plus can do this to peple and get away with it.

  6. Lawrence Labonte | December 6, 2012 at 11:20 am |

    Well it seems we are all in the same boat.I switched to Energy Plus for the air miles. I was to recieve a rate of .074 I opted foe an extra .01 for renewable so my first bill came in at .084KWH as expected the next billing cycle was .099 a slight increase but not to alarming BUT then on the 3rd billing cycle it jumped to.149 a 50% increase!!! I called them and told them Oil Gas Coal and Nat gas did not increase 50% in the month of Oct 2012 and that i felt it was just plain theft.I called CL&P to switch me to them.They said it would take place Immediatley Dec 3 2012. I am waiting to see the next bill I hope i don’t wind up like Charlene in the previous post where energy plus would not release her account.If they don’t release the account that IS theft that is being held hostage.I cant believe with all the complaints of this magnitude thhat they are allowed to opperate in any state.And the states regulatory agencys sould be ashamed to have not shut them down already

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