On October 18, 2011, our attorneys filed a class action in the Federal District Court for the Southern District of New York on behalf of all New York consumers that purchased their retail electricity from the independent energy supplier Energy Plus Holdings LLC.
Energy Plus is a company that thrives in the deregulated energy market in which New York consumers purchase retail electricity. Unfortunately for many consumers, numerous states have begun deregulating retail electricity rates. Prior to deregulation, retail electricity suppliers had to file the specific kilowatt per-hour rate they would charge electricity consumers, and they were forbidden from charging more than that rate. However, many states, including New York, Connecticut, New Jersey and Pennsylvania now allow independent, alternative electricity suppliers to compete against established utilities like Connecticut Light and Power and ConEd by purchasing electricity at wholesale rates on the open market, which they then sell to consumers at market, and theoretically lower and more competitive, rates.
The Class Action Complaint alleges that Energy Plus takes advantage of the deregulated market by using deceptive sales tactics to market electricity that is substantially more expensive than electricity provided by other independent retailers or local utilities. In particular, Energy Plus claims that its rates are competitive and reflective of market prices. However, Energy Plus’ rates are in fact substantially higher, sometimes as much as two to three times than the rate other suppliers are charging. The Complaint also alleges that Energy Plus fails to inform consumers that their electricity rates are substantially higher than market rates.
If you or someone you know is a customer of Energy Plus, or any other independent supplier you believe may have misrepresented the true amount of their electricity rates, please contact us to discuss your legal options.