What started as a so called “scam” has turned into a lawsuit against Energy Plus. The power company has always been known for competitive prices. It was called a scam when several customers started complaining about price hikes.
A consumer fraud class action lawsuit filed against Energy Plus was reported by Lawyersandsettlements.com. According to the website, customers are suing Energy Plus over rate hikes. Customers were told rates are based on market factors.
Electricrates.com has received several complaints about the company saying prices skyrocketed after the first month’s bill. It was also reported on this site Energy Plus was not a “Scam” but merely a misunderstanding about variable rates.
The law firm Sanford Wittels and Heisler LLP is representing Yue Yu. The plaintiffs live in New Jersey. Yu claims her electricity cost went up 70% after 60 days. Energy Plus services several states including Texas, Pennsylvania, New York, and Illinois. Its bulk of customers are from the northeast.
It is hard to tell if Energy Plus Holdings LLC had any knowledge about the potential lawsuit when it was bought by NRG Energy for $190 million. NRG Energy, which owns Reliant, bought the company to expand into the northeast deregulated energy markets.
Energy Companies Beware
The Energy Plus scam class action lawsuit should make other energy companies check their sales tactics with a lawyer. If the rates are not based on market factors more providers could see similar lawsuits.
Customers routinely call their prepaid electric company a scam because the rate is not always shown or sold as a bundled rate.