Did Your Electricity Bill Go Up After You Changed Service Companies?

Some deregulated energy service companies that claim to offer lower monthly bills may actually cost their customers more than they ever expected.

Certain states have something called “utility deregulation,” which allows customers to choose to buy power or gas from the either the major public utility supplier or instead from one of the new utility suppliers, otherwise known as energy service companies or ESCOs.

Though the choice ultimately belongs to the consumer, these energy service companies market themselves aggressively as being superior to traditional utilities. Generally, energy service companies claim to offer significant lower rates. They often tell the consumer that the rates are “locked in” for a certain amount of time—say, a year—as a way of assuring them the low rates will be consistent.

However, some customers say that after this period is up, energy service companies will often hike the price substantially, which can frequently push customers into paying higher rates than they were paying prior to the switch.

More and more customers are coming forward with claims that these deregulated energy service companies employ deceptive tactics and aggressive marketing to convince customers to switch energy service companies.

One small business owner said that the rate her new energy service company started charging her was twice the rate it had promised. In later months, she says that rate shot up to more than five times what she’d ever expected, ending up costing her thousands of dollars. “Everything over and above what I would have normally paid came out of my pocket, personally, because that’s how small business owners make their living,” she told Al Jazeera America.

Deceptive Energy Service Practices

Customers of energy service companies are concerned that they’ve been the target of deceptive practices used to lure them to new energy service companies, later discovering that the rates do not remain as low as they are led to believe. Sometimes, they say energy service companies may not inform customers of the basis for these price fluctuations. Others report that companies simply break the promise of a competitive market rate.

Why the change? Traditional utilities—that is, regulated utilities—are required by law to justify any increase in gas and electric rates, both to state regulator and to the public. But these “deregulated” energy service companies generally have no such requirement, and can set their own rates freely. Some energy service companies have been accused of using this freedom to charge their customers exorbitant amounts.

If you bought your electricity and/or gas through one of these deregulated energy service companies, only to find that your energy costs went up, you may be able to join an energy service company lawsuit investigation.

Energy Service Companies

Energy service companies (ESCOs) involved in this investigation include:

• Constellation
• Reliant Energy
• Verde Energy
• Spring Energy

If you switched to one of these deregulated energy service companies for your electricity or gas, and your utility costs subsequently increased, you may be eligible to join this free investigation, even if you have already left that energy company.

Join a Free ESCO Energy Class Action Lawsuit Investigation

You may qualify to file an energy service company class action lawsuit if you bought utilities through a deregulated energy supplier such as:

• Constellation
• Reliant Energy
• Verde Energy
• Spring Energy

Learn More