American Power and Gas Among Deregulated ESCOs Under Investigation for High Rates

Did you switch utility companies to an energy service company such as American Power and Gas, but your bills went up instead of down?

Consumers who live in states with deregulated utilities were promised the new competitive market would ensure they received less expensive utility bills. Energy service companies (ESCOs) like American Power and Gas became a staple in the industry because ESCOs don’t produce the energy, but they act as a middle man, buying gas or electricity at wholesale prices and re-selling it to customers.

Unfortunately, many consumers sign up with ESCOs because of promises of lower rates, rebates and other money-saving enticements that only last the first year. When that year ends, prices often are switched to a variable rate that fluctuates, generally in an upward motion.

ESCOs such as American Power and Gas legally set their own rates, which means consumers (nor regulators) have control over the pricing scheme.

States that continue to have regulated utilities must justify an increase in gas or electric rates to state regulators and the public before rates can increase.

American Power and Gas Complaints

According to a statement on the American Power and Gas website, the company says, “Our main focus is to provide low cost energy solutions across the USA sourced from renewable energy.”

American Power and Gas also prides itself on offering each customer a 25 percent rebate check on their average month’s electricity or gas supply bills after one year of billing. The company services the deregulated states of New York, Pennsylvania and New Jersey.

According to the American Power and Gas website, customers sign up for a 24-month term, but can leave at any time. Even though the site says there is no fee to cancel, there may be a charge to leave if APG has paid a transfer fee to cancel the customer’s previous utility provider.

A look at the Better Business Bureau’s website offers a glimpse of what actual customers are saying about their American Power and Gas experiences.

One customer reported being offered a rate of $.0499 in June 2018, but saw her rate nearly double by the third month. She said, “We are being overcharged for our electric. .. This is absurd! I have called and left 2 messages and a third call was disconnected without being able to leave a message… Furthermore, how can they double their price without notifying the customer?”

Another customer writes that his bill increased dramatically after one year. He alleges he began paying 7.4 cents per kilowatt and is now being charged 19 cents per kilowatt.

An upset customer pleads with the BBB, saying “Please stop these predators. Predatory practice of solicitation to senior citizens for lower energy bills that end up being double normal costs.”

ESCOs also allegedly don’t always provide the reason for rate increases or simply break a promise to enforce a competitive market rate.

Other ESCOs that are under scrutiny for potentially using misleading marketing practices include Direct Energy Services, Oasis Power and Palmco Power LLC.

Join a Free ESCO Energy Class Action Lawsuit Investigation

If you bought utilities through a deregulated energy supplier, including any of those listed above, and saw your utility costs increase, you may qualify to file an energy service company class action lawsuit.

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