Retail Supplier To Pay $3 Million, Agrees To 7-Year Marketing Stay-Out Under Settlement -- EnergyChoiceMatters.com

Retail Supplier To Pay $3 Million, Agrees To 7-Year Marketing Stay-Out Under Settlement

November 23, 2022

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Reporting by Paul Ring • ring@energychoicematters.com

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Eligo Energy CT, LLC (Eligo) would pay $3 million and would agree to a marketing stay-out lasting seven years under a settlement with the Office of Education, Outreach, and Enforcement (EOE) of the Connecticut PURA

Eligo Energy provided the following statement concerning the matter:

"Eligo Energy CT, LLC ('Eligo CT') has entered into a settlement agreement with the Office of Education, Outreach, and Enforcement ('EOE') of the Connecticut Public Utilities Regulatory Authority ('PURA') to resolve certain issues related to marketing and enrollment of commercial customers that the Eligo CT identified as part of its interrogatory responses.
"Since receiving its license from the Authority in 2016, Eligo CT has enrolled only commercial customers. In responding to EOE interrogatories, the Company identified potential issues with the enrollment and marketing practices of its vendor and worked with EOE to address them in a manner satisfactory to all parties.
"As part of the settlement, Eligo CT will make a contribution to reduce Connecticut hardship arrearages, provide refunds to several specifically named customers, and agree to a marketing moratorium. During the moratorium, the Company will focus on providing continued services to its existing commercial customers.
"We take compliance matters very seriously and appreciate EOE working with us to resolve this matter."
--- Statement from Eligo Energy

In brief, under the settlement, Eligo would:

1. Pay $3 million to the electric distribution companies to be allocated to hardship arrearages;
2. Retain current customers but not market to or enroll any new customers before January 1, 2030; and
3. Provide restitution to the customers with outstanding complaints to EOE (in an aggregate amount of about $30,000)

The settlement states that, since receiving its license from the Authority in 2016, Eligo has enrolled only commercial customers (some with incidental residential accounts) and currently serves a total of less than approximately 1,900 commercial customers.

The matter arises from interrogatories issued by EOE to Eligo regarding marketing and enrollment practices, including request for TPV scripts, recordings, quality assurance processes, and related materials

A formal Notice of Violation has not been issued in the proceeding, nor has EOE formally alleged any violations

The settlement states that, "in responding to the interrogatories, Eligo identified potential issues with the enrollment and marketing practices of its vendor."

Concerning the market stay-out, Eligo may continue to serve existing customers and renew such customers, but, if an existing customer ceases service, Eligo may not re-enroll such customer during the stay-out

Specifically, upon approval of the settlement, the settlement provides that, "Eligo shall immediately cease all marketing, as described in this paragraph, and shall continue such marketing cessation until January 1, 2030 ('Marketing Stay Out'). Marketing includes, but is not limited to, all digital and print media, social media, the EnergizeCT Rate Board, telemarketing, and warm body marketing. During the Marketing Stay Out, Eligo may serve only customer accounts enrolled with Eligo as of October 27, 2022 ('Current Customers'). If a Current Customer ceases service with Eligo during the Marketing Stay Out, Eligo may not re-enroll that customer during the Marketing Stay Out. During the Marketing Stay Out, Eligo shall not market to or enroll new customers or perform any 'win back' marketing or other customer outreach to a Current Customer that does not renew and/or ceases service with Eligo. Eligo may retain all Current Customers enrolled prior to the Marketing Stay Out, may provide renewal notices and/or renewal rates to its Current Customers on a fixed price contract, and may engage with its Current Customers to the extent they contact Eligo about their renewal or may assist Current Customers with general customer service questions. Renewal notices must contain all renewal rates and applicable terms."

The settlement states that, "This Settlement Agreement does not represent an admission or concession by Eligo as to the claims, or facts or circumstances surrounding the claims, or proper disposition of any issue related to this Settlement Agreement."

Docket No. 14-09-11

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