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PUC Staff Directs Retail Supplier To Respond to Concerns Over Verification, Rescission Practices

July 15, 2015

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

The Maine PUC Staff has directed Ambit Northeast, LLC to respond to concerns regarding its practices related to verification and the rescission period.

According to a letter from the PUC general counsel to Ambit, "In March 2015, the Commission’s Consumer Assistance and Safety Division (CASD) received two complaints regarding Ambit claiming that the CEP had switched customers to their service without their permission and over their objection. On June 16, 2015, CASD found Ambit to be in violation of Chapter 305 and Chapter 322. Chapter 305, section 4(B)(3), of the Commission’s rules requires a CEP to obtain verification that a prospective customer 'has affirmatively chosen' to take service from that CEP. A CEP may not enroll a customer without first obtaining verification of affirmative choice. Chapter 305, section 4(B)(2), of the Commission’s rules requires a CEP to provide a prospective customer with the opportunity to rescind her choice to take service from that CEP. A CEP may not enroll a customer until after the rescission period has expired. Chapter 322, section 7(A)(1), of the Commission’s rules prohibits a CEP from providing a transmission and distribution utility with notification to enroll a customer until the end of the rescission period."

"On June 16, 2015, CASD staff found that Ambit failed to obtain verification that a prospective customer affirmatively chose to take service from Ambit because an Ambit independent consultant pretended to be the prospective customer. CASD found that at least one other prospective customer experienced this same problem, and believe other electricity customers could be impacted by the Ambit independent consultant who signed up their co-workers unwillingly or willingly under a 'friends and family' promotion from Ambit," according to the letter from the PUC's general counsel

"The Commission is concerned that there may have been more customers improperly enrolled by Ambit and that the company failed to adequately verify with its customers their choice to select Ambit as their provider, did not provide them with any rescission opportunity, and improperly enrolled them as Ambit customers," the letter said, which directed Ambit to respond to a number of questions

An Ambit Energy representative provided the following statement to EnergyChoiceMatters.com:

"Ambit Energy does not condone or tolerate the illegal practice of energy 'slamming' by Independent Consultants. We take Customer security very seriously and have verification procedures in place to make every effort to prevent this from happening. We are fully cooperating with the Maine Public Utilities Commission and our Field Compliance Team has launched an investigation into this matter."

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