Deregulated Electricity Prices Make for an Unpleasant Surprise

Several states have deregulated electricity in recent years, leading to new energy retail companies popping up and enticing customers with offers of low pricing.

Some disappointed customers have filed lawsuits against their energy suppliers, alleging that the company promised customers that their deregulated electricity bills would be no higher than the “standard offer” price, and this was true for a certain period of time. However, sometimes just a few months in, rates were sharply increased.

In some cases, customers were hit with at least 50 percent hikes above the standard offer price they were promised.

Deregulated Electricity

The new deregulated electricity format has allowed customers to choose from more options. Customers can choose to stay with traditional utility services, or even to switch to an alternative electricity company. These new companies offer contracts to residential customers lasting a certain number of months, such as 12, 24, or 36, which allows customers to expect a reliable, long-term price.

However, there is no guarantee that these long term low prices will be around forever. Indeed, these companies can take advantage of deregulated electricity and suddenly hike up prices after a single contract term is over. Consumers may end up paying substantially more in this competitive supply environment than they would have if they had stayed with a more traditional format.

Of course, most competitive suppliers that have cropped up since certain states have deregulated electricity do not take advantage of their customers in this way. But there are still a number of companies accused of using deceptive tactics to lure customers in before suddenly springing higher prices on them.

Electricity Maine Lawsuit

For instance, the electricity company known as Electricity Maine has been targeted in a recent lawsuit over its pricing policies.

Shortly after Maine deregulated electricity in the early 2000s, Electricity Maine began targeting thousands of residential customers, signing them up for their services. The company’s promise at the time was that what it charged for electricity would never rise above the standard offer price, which is set by an electric supplier.

Plaintiffs involved in the lawsuit have sought class action certification in their Electricity Maine lawsuit. Being certified as a class action lawsuit would allow plaintiffs to seek millions of dollars in damages on behalf of tens of thousands of customers who were affected by the company’s billing practices.

One attorney involved in the proceedings noted that around 1,000 Maine residents have already come forward since this lawsuit was filed to see if they could join a class action lawsuit.

Filing a Deregulated Electricity Lawsuit

If you were affected by sudden price increases from Electricity Maine or another electricity company after being promised prices no higher than the standard offer, you may be able to join a class action investigation. Affected utility customers may be in a position to file a deregulated electricity class action lawsuit of their own.

Join a Free Energy Deregulation Class Action Lawsuit Investigation

If you buy your electricity and gas through an energy retailer in a state where energy was deregulated and your energy costs went up, you may qualify to file an energy deregulation overcharge lawsuit or class action lawsuit.

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