Connecticut PURA Directs Verde Energy to Address Complaints, Allegations of "Deceptive" Tactics

The Connecticut PURA has directed Verde Energy USA, Inc. to respond to several questions regarding a recent increase customer complaints, including allegations that the supplier's representatives have stated that they were employees of Connecticut Light & Power or United Illuminating.

In an April 11 letter to Verde Energy, PURA said that recently, its Consumer Services Unit, "has noticed an increase in the number of complaints filed against Verde Energy USA, Inc. (Verde or Company)."

"According to the data compiled by the CSU as of the date of this correspondence, Connecticut customers have filed 18 complaints against Verde, greater than half of the total number of complaints filed against Verde during all of calendar year 2011 (35 complaints)," PURA said.

PURA further said:

"In particular, many of the complaints filed against Verde involve issues surrounding the solicitation of customers by the Company. Customers have stated Verde has contacted them repeatedly, even though they are on the 'Do Not Call' list; that Company representatives have stated they were employees of either The Connecticut Light and Power Company or The United Illuminating Company; or that Company representatives have used either deceptive or harassing tactics during the solicitation process. In addition to these allegations, the Authority also received complaints during the end of calendar year 2011 wherein customers stated that Verde representatives claimed to be offering credits for losses during the two prolonged outage incidents caused by weather events. Understandably, the Authority is very concerned about the nature of these complaints."

PURA directed Verde to report on its sales methods including whether it uses employees or third party vendors; and to describe its various compliance policies and its procedures for employees or agents who do not comply with the Authority's Code of Conduct.

Tony Menchaca, Chief Marketing Officer for Verde Energy, provided the following statement to Matters:

"Verde is committed to following the rules in Connecticut and wherever we do business as a competitive retail electric supplier. We have an excellent track record of delivering energy savings to our retail customers and we do so in compliance with the rules. Verde researches and provides prompt responses to all inquiries sent by PURA. In each case referenced in the latest PURA letter, Verde has already provided related documentation (e.g., enrollment verification recordings) and there are currently no open issues with any of these inquiries. We are continuing our ongoing quality control and compliance training efforts to ensure that our sales representatives adhere to call scripts and related procedures."