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Retail Supplier To Return Residential Customers In State To Default Service, Pay $100,000 Under Settlement
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Mega Energy of New England, LLC ('Company') and the Delegated Commissioner of the Massachusetts Department of Public Utilities have entered into a settlement agreement under which Mega Energy would return its residential customers in Massachusetts to default service, and pay $100,000.
Mega Energy will continue to serve commercial customers in Massachusetts.
Mega Energy provided the following statement concerning the matter:
"This settlement brings closure to the investigation that was opened as a result of the actions of a third-party marketing vendor that conducted residential enrollments on behalf of Mega Energy in Massachusetts. While the actions of the vendor and its agents were in no way endorsed or authorized by Mega Energy, the settlement reflects that Mega Energy has agreed to accept responsibility for the vendor’s actions. Mega Energy looks forward to moving beyond this unfortunate episode and to continuing to serve commercial customers in the state of Massachusetts."
--- Statement from Mega Energy
The settlement would resolve all allegations contained in a Delegated Commissioner’s Notice of Probable Violation issued in 2020 and all matters arising in the proceeding (Docket 20-47)
See our prior story here for full details on the alleged violations. In brief, the Notice of Probable Violation alleged that certain of Mega Energy's TPVs did not constitute affirmative consent because, as alleged by the Delegated Commissioner, the TPVs reflected customer confusion or included customer answers that were only provided after "badger[ing]" by the agent.
Under the settlement, Mega Energy of New England, LLC would exit the residential market for three (3) years from the Effective Date.
However, the foregoing shall not prevent the Company from continuing to serve incidental residential accounts (i.e., accounts that are identified as residential meters by the electric distribution company but are under a contract with a commercial counter-party).
As part of such exit, Mega Energy would return applicable residential accounts to basic service
The settlement agreement provides that, "This Settlement Agreement shall not be deemed in any respect to constitute an admission by any Settling Party that any allegation or contention made in this proceeding is true or false. Nothing in this Settlement Agreement shall constitute an admission by the Company that any violation of any law or other form of wrongdoing has occurred, or that any liability to any other Settling Party or third party exists."
The settling parties represented that the Massachusetts Attorney General and the Massachusetts Department of Energy Resources do not object to the settlement agreement
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December 27, 2021
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Copyright 2010-21 EnergyChoiceMatters.com
Reporting by Paul Ring • ring@energychoicematters.com
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