A Settlement Between OCC, PURA’s Office of Education, Outreach, and Enforcement and Verde Energy Resolves Allegations of Deceptive Marketing and Provides Monetary Relief to Consumers.
NEW BRITAIN, Conn. (October 18, 2022) – Consumer Counsel Claire E. Coleman announced today that the Public Utilities Regulatory Authority (PURA) has approved a settlement agreement between the Office of Consumer Counsel (OCC), PURA’s Office of Education, Outreach, and Enforcement (EOE), and third-party electric supplier Verde Energy. The settlement agreement resolves PURA’s August 12, 2022 Notice of Violation against Verde Energy that alleged that when conducting telesales marketing, the company did not comply with Connecticut law by:
1) failing to clearly state the purpose of solicitations;
2) including statements that implied that customers must enroll with a third-party supplier;
3) misrepresenting the standard service rate;
4) implying the solicitations were affiliated with an electric distribution company;
5) failing to properly monitor sales agents; and
6) other allegedly deceptive and unfair practices.
The approved settlement provides for the following relief:
- Verde Energy will pay $1.5 million to Eversource Energy and The United Illuminating Company to be used to pay off hardship arrearages, which assists customers with a high energy burden and benefits all ratepayers by reducing uncollectibles;
- Verde Energy will reimburse, in the form of a bill credit, all of its customers enrolled after May 1, 2019 the difference between what customers paid Verde Energy and the applicable standard service rate;
- Verde Energy will reimburse, in the form of a bill credit, all customers currently enrolled below the applicable standard service rate a credit of $100;
- Verde Energy will exit the Connecticut market for a period of 7 years.
“Consumers seeking to save money on electric supply deserve to hear an honest sales pitch, not misleading representations that cause them to potentially lose money,” said Consumer Counsel Coleman. “This settlement puts serious allegations to rest and helps reimburse those customers led astray by Verde Energy’s deceptive marketing. I thank EOE for its leadership in working to achieve this resolution, Verde Energy for their cooperation, and PURA for approving this settlement that will benefit both our most burdened energy consumers and all ratepayers.”
OCC encourages all consumers who wish to participate in the third-party electric supply market to use the EnergizeCT rate board. When receiving outbound, unsolicited marketing from third-party electric suppliers, OCC encourages all consumers to remain diligent and not succumb to high-pressure tactics. Consumers with questions about the third-party electric supply market are free to contact OCC at any time by email at occ.info@ct.gov or by telephone at 860-827-2900.
Earlier this year, OCC, EOE, and the Office of Attorney General entered into a settlement with Public Power for $3 million dollars in order to resolve compliance issues. OCC continues to monitor the third-party supply market and the state of electric competition in Connecticut.
Consumer Counsel Coleman thanked Staff Attorneys Andrew W. Minikowski and Julie Datres for their assistance in this matter.
###
The Office of Consumer Counsel (OCC) is the State of Connecticut’s advocate for consumers on issues relating to electricity, natural gas, water, and telecommunications. For more information, visit www.ct.gov/occ.