Consumer Counsel Seeks Investigation of Retail Supplier Over Municipal Marketing/Affinity Programs

The Connecticut Office of Consumer Counsel petitioned the Public Utilities Regulatory Authority to open an investigation of Direct Energy Services LLC's municipal marketing program (known as the Direct Choice program), as OCC alleged that customers in at least one municipality were charged higher rates than provided for under the agreement with the municipality.

The Direct Choice program is a program under which, for a civic contribution, a municipality refers customers to Direct Energy for a typically discounted rate, on an opt-in basis.

One such Connecticut municipality entering an agreement with Direct Energy for a Direct Choice program was the Town of Coventry.

OCC alleged that it, "has received a number of complaints which indicate that Direct Energy has routinely provided higher prices to customers than stated in the Coventry/Direct Energy contract and provided grossly inadequate customer service when customers seek to access the appropriate rates or express concerns about overcharges."

"Direct Energy repeatedly failed to give citizens in Coventry the agreed-upon rates, and instead charged them higher rates either immediately or in periods following the enrollment period (i.e., failure to roll over customers to the new, reduced rates in years 2 and 3 of the Coventry contract). Direct Energy telephone and on-line enrollment systems were not set up to allow customers to access the contract rates. Complaints further indicate that even Direct Energy customer service personnel could not access information about Coventry's rates in their system, and so these calls were not leading to enrollments at the correct rates," OCC alleged.

"The number and frequency of these complaints require PURA to investigate whether Direct Energy has engaged in a systematic and intentional scheme to overcharge customers," OCC alleged.

"The Petitioner respectfully moves that PURA investigate Direct Energy's municipal market programs throughout the State of Connecticut to determine whether the issues identified in Coventry are widespread," OCC requested.

Direct Energy provided the following statement to Matters:

"The issues outlined in the Office of Consumer Counsel's (OCC) petition to address customer concerns are part of an existing investigation already underway with the Public Utilities Regulatory Authority (PURA) in Connecticut in which we've been fully cooperating.

"We take any and all issues regarding our customers and our services seriously, as proven by our immediate response to the ongoing PURA investigation. We are committed to our customers in Connecticut and are addressing this issue as expeditiously as possible."

As first reported by Matters, PURA had previously assigned Docket 13-07-17 for an investigation into Direct Energy Services, LLC's trade practices, but PURA has not yet indicated what specific issues will be addressed in Docket 13-07-17.

OCC's petition was docketed as Docket 13-08-19