Energy Choice
                            

Matters

Retail Supplier To Issue Refunds Under Proposed Settlement

June 1, 2015

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Copyright 2010-15 EnergyChoiceMatters.com
Reporting by Paul Ring • ring@energychoicematters.com

Nordic Energy Services, LLC would issue refunds to certain customers under a settlement with Staff of the Illinois Commerce Commission; the Citizens Utility Board; and the Office of the Attorney General to resolve an investigation regarding the supplier's marketing practices.

Staff had alleged that Nordic had engaged in: (i) unauthorized telephone solicitations; (ii) misrepresentation/deceptive sales script language; (iii) non-disclosure of requisite telephone solicitation uniform disclosure statements; (iv) improper third-party verifications; and (v) improper training of agents

Nordic Energy does not agree with and does not admit the assertions that its scripts, actions, or inactions failed to comply with various requirements set forth in the Act, Part 412, or Section 2EE of the CFDBPA and asserts that its intent is and has always been to fully comply with all applicable laws and regulations. Nothing in the settlement constitutes an admission of any violation or wrong doing by Nordic Energy.

Under the settlement, Nordic Energy shall send to customers solicited by telemarketing script between March 2013 and February 2014 a notice that they may be eligible for a refund. The letter will direct customers to contact Nordic to request a refund.

Nordic Energy will issue appropriate refunds to eligible customers who contact Nordic Energy and present, "reasonable, good faith claims that they believe they were misled, uninformed, or confused as a result of an alleged action or failure to act by Nordic Energy at the time they enrolled for Nordic Energy’s service."

Nordic Energy shall work with such eligible customers on an individual basis to determine an appropriate refund. Appropriate refunds shall take into account various factors including the enrollment circumstances asserted by the customer; the utility price to compare, or other appropriate price to compare such as a municipal aggregation supplier or other supplier, at the time the customer enrolled with Nordic Energy; and the price for and duration of Nordic Energy’s services to the customer. Refunds will not be conditional upon being a current Nordic Energy customer or remaining a Nordic Energy customer. To the extent that any early termination fees were applied or are determined to be applicable to Eligible Customers, Nordic Energy shall waive or credit all such fees in determining the refund amount for any Eligible Customer.

Nordic Energy already has issued such refunds to some eligible customers.

After 12 months, if the total refund value paid is less than $310,800, then Nordic Energy shall issue additional refunds sufficient to bring the total refund value to $310,800 by issuing refunds, on a pro rata basis, to eligible customers who have not contacted Nordic regarding a refund, excluding any customer to whom Nordic Energy has already issued a refund in connection with the settlement and eligible customers for whom Nordic Energy received an "undeliverable" notice from the U.S. Post Office in response to the refund eligibility notice.

If the sum of these additional refunds does not exceed $50,000, Nordic Energy may elect to issue a pro rata credit toward the monthly bill of eligible customers who are customers of Nordic Energy in the thirteenth month following the date of the refund eligibility notice.

The settlement also requires various remedial measures with regards to marketing.

Among other things, Nordic Energy must record all telesales by Nordic Energy and its vendors.

Additionally, the stipulation provides that Nordic Energy and its sales agents shall not submit or execute a change in a residential or small commercial retail customer’s selection of a provider of electric service resulting from a door-to-door sales solicitation unless and until Nordic Energy has (i) confirmed the customer’s request for a change through both an independent TPV that requires the customer to verbally acknowledge that he or she understands items (d) through (p) of the minimum disclosures required for a sales contract per Section 412.110 of Part 412 of the Commission’s Rules and (ii) obtained a signed Letter of Agency which includes items (d) through (p) of the minimum disclosures required for a sales contract per Section 412.110 of Part 412 of the Commission’s Rules.

The settlement remains subject to ICC approval.

In a statement, Nordic Energy said that, "Nordic Energy Services, LLC continues to work closely with the ICC to reach a resolution to this matter. We take claims of consumer protection seriously and are working to achieve a fair resolution for those affected."

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