I was doing some research about Viridian Energy when I came across several articles claiming the company was a scam. They said that the company raised rates after the first couple of billing cycles. The so called “Viridian Energy Scam” might be the normal response to an MLM, which are considered by most to be a scam. The Viridian Pyramid Scheme is a little bit different than the Amway or Mary Kay MLM modules which sells a variety of products.
Viridian sells competitive electricity services in deregulated states in the US. Associates make money based on how many customers they obtain. The most recent MLM Texas electric company caused a bit of a fiasco with a novel electricity plan that was strictly tied to the Texas wholesale electricity price.
Like many MLM energy companies they often end up defunct after a few years. Griddy Energy was the latest MLM electric company to go bankrupt but this is not uncommon.
Is Viridian Energy a scam?
No! Just like every article I have written on this site about so called “scams” like Energy Plus Scam and Ambit Energy Scam when looked at carefully I could tell it was not a scam. Were there things shady about the companies’ tactics? Maybe, but it depends on the individual situations.
Viridian Energy Scam is most likely based on someone signing up with a variable rate plan which almost every electric company offers. The plan can save people money for the first month but can cost more in the long run.
The class action settlement with Viridian Energy for several million dollars is likely a sign that the variable price they offered was a bit dishonest to their customers. If the settlement win is any evidence of wrong doing we would assume their customers deserve that money. Here is the settlement link regarding the millions entitled to their customers.
A fixed rate plan is better than a variable plan because it give customers the peace of mind of knowing their rate will not change after the first month. Fixed rate plans have one caveat which is a contract. There is a fee to end a customer’s contracts early.
As for the MLM side of things, most people try to sign up their family members and when something gets missed up everyone is unhappy. I’m not claiming this is what is happening with this MLM.
Viridian VS Ambit
Both companies use the MLM business module to sell electricity. I’m sure they are not the same and since I neither work for them nor represent them, I cannot tell which company is better. I can say Ambit is one of the fastest growing companies according to INC.com. This does not mean that Ambit’s electricity is better than Viridian’s electricity.
Electric Rates does not sell electricity service through Viridian Energy or Energy Plus. Ambit Energy has since been bought by an umbrella company that owns both Ambit Energy and TXU Energy.
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Donny has been writing about the deregulated energy markets since early 2007. His knowledge has helped consumers lower their electricity cost.