Watchdog Groups Warn Consumers of Overcharged Electricity Bill Problem

Watchdog groups looking into energy deregulation overcharges are pushing New Yorkers not to buy services directly from energy marketing companies—at least until there is better oversight to protect customers.

According to these groups, customers may be promised prices lower than those of traditional utilities, but end up with a dramatically overcharged electricity bill even higher than they had before switching to an energy service company.

“Until the energy service companies are fully regulated and consumer protections are reformed, we are advocating for customers not to take service from them,” said director of the Public Utility Law Project, Richard Berkley.

Indeed, these groups warn that New Yorkers were overcharged by around $820 million in a period of 30 months starting in February 2014. The average customer paid around 22 percent more through their energy service company than they would have paid by way of traditional utilities.

Energy Deregulation

Sixteen individual states, including Illinois, New York, Oregon, and Texas, have deregulated gas and electricity energy markets in the last few decades. This has allowed Energy Service Companies (ESCOs) to sell both gas and electricity in a more direct fashion to customers. Some of these retail utility companies allegedly offer customers what they say are competitive fixed rates, but then months or years later switch them to a plan with a variable, fluctuating rate. Customers are then left with energy services that are even more expensive than they were prior to deregulation, even though the sale is direct and despite the promises made to them by their energy service company.

Indeed, though the switch to deregulation has become increasingly popular, more and more customers are finding the drawbacks. Where traditional utility companies had to justify increases to their rates to both regulators and the public prior to making such changes, these energy companies in deregulate states can simply instigate the changes with no oversight.

Filing an Overcharged Electricity Bill Lawsuit

Some customers have begun filing overcharged electricity bill class action lawsuits, alleging that the costs of their energy services went up drastically despite being promised by their energy retailer that the costs would actually stay down.

One customer filed a class action lawsuit in 2015 against Stream Energy, an energy retailer that operates in six states and the District of Columbia. The lawsuit alleges that the plaintiff’s electric bill shot up by over 50 percent when he switched to Stream, despite promises to the contrary. Ambit Energy has also been hit with a class action lawsuit.

In deregulated states, which have grown increasingly common in recent decades, a growing number of customers are complaining that they have ended up with a monthly overcharged electricity bill despite energy retailers promising lower gas and electricity prices.

If you have been hit with an overcharged electricity bill by your energy retailer in a deregulated state like New York, you may be able to join a class action lawsuit. Filing a lawsuit can help compensate you for these overcharged bills.

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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