As pressure increases to reduce the size of government and decrease industry regulations, many 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 California and New York now allow independent, alternative electricity suppliers to compete against established utilities like 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.
It turns out that deregulation is not the panacea for which state legislatures hoped. While costs for some electricity to consumers who switched to alternate suppliers were initially slightly lower, many consumers have seen their bills skyrocket after leaving the established utilities. In response, some alternative suppliers have apparently turned to unfair and potentially deceptive practices to maintain their exorbitant profits. Finkelstein, Blankinship, Frei-Pearson & Garber, LLP is investigating whether Spark Energy Plus, LLC is charging exorbitant rates in violation of its promise to consumers. Energy Plus claims that its rates are based on the “market.”
If you or someone you know is a customer of Spark Energy, 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.