Not so surprising, Energy Plus, has been named in a class action based on a press release sent out by Sanford Wittels & Heisler LLP law firm.
The lawsuit makes the same assertion we have received numerous times on our website by Energy Plus customers.
In the allegation the typical scheme is recognized as found in the federal trade practices act known as a “bait and switch scheme”
The assertion is that customers are complaining that Energy Plus promises them competitive electric rates if they switch from their current provider.
The problem is that within 1 to 2 billing cycles the rate increases by as much as 150% completely wiping out the competitive aspect to the rate.
This class action is for New Jersey electric service customers although Energy Plus offers similar advertising campaigns through Best Buy in Texas and many other states. We have also seen Energy Plus advertise through the government college loan payback incentive program Upromise. Many people on the Upromise board complain that Energy Plus has scammed them. See for yourself click here – Update: It looks like Upromise no longer has a community forum. I am not surprised considering the amount of hate comments their Energy Plus program was getting with students that had tried the offer.
Some customers have complained that they have lost hundreds and sometimes thousands of dollars a year from switching to Energy Plus based on the “competitive rate” promise.
Energy Plus currently sells retail electric service in Connecticut, Illinois, Maryland, Massachusetts, New York, Ohio, Pennsylvania, and Texas.
NRG Energy the parent company of Reliant Energy bought Energy Plus just a few short months ago. We wondered if the marketing tactics would change now that they were under the larger authority brand of NRG Energy but it appears things did not change that much.