Utility Customers Complain of Spiking Verde Energy Rates

A growing number of consumers who are paying Verde Energy rates for their electric power allege that their rates went up after they switched from a regular utility company to the deregulated energy service company.

These customers say they relied on print advertisements and door-to-door salesman promising them lower energy rates. Consumers who ask questions discover that these lower rates are protected for a year, which can be enough of a promise to encourage those customers to switch over from another provider. Unfortunately, however, this lower rate comes with a price spike after that and one that may leave them paying more than what they paid to their previous electric service provider.

Verde Energy and other deregulated energy service companies, also known as ESCOs, have been accused of spiking rates after consumers sign up with them. These consumers allege that Verde Energy rates were much higher than they anticipated when they switched electric companies.

Part of the rationale behind deregulating utility companies was that market competition would drive down rates. Accordingly, consumers who have switched from a local utility provider to a deregulated seller might have opted to sign up with the promise of lower monthly bills. Some consumers including those who have had to pay Verde Energy rates allege that their electric bills have actually been much higher than what they would have paid if they had stuck with the traditional utility supplier.

Some of these consumers have since left the deregulated supplier but still have claims and complaints about the deregulated energy companies. These deregulated energy service companies often market aggressively to prospective consumers by claiming that switching will lower their rate.

Many of the service promotions promise the consumer that they will be locked into these lower rates for a year. However, once that year term is over, the rates for the energy company, including Verde Energy rates could become much higher than they were prior to the switch.

A number of different complaints about Verde Energy rates and the rates from similar electric suppliers argue that misleading sales practices have been used by these energy companies to encourage customers to switch, and this means that later the utility customers end up paying significantly more than they would have or should have paid. The alleged scheme amounts to a bait-and-switch, some customers say. In some of the complaints about the spiking energy rates, the reasons behind the fluctuation after the expiration of the one-year period are not disclosed.

Other consumers allege that the company has completely broken the promise to offer competitive market rates for energy. Many of these consumers allege they signed up for the competitive fixed rates promoted to them but then later discovered that a fluctuating rate occurred later on.

In comparison, regulated utility companies have to justify increases in electric or gas rates to state regulators as well as the public, prior to moving forward with raising rates.

Deregulated energy supplier companies are not subject to the same requirement. They are eligible to set their own rates and this means that sometimes consumers can end up paying more than they expected or being enrolled into a service contract with unclear terms.

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