Texas REP to Pay $28,000 to Resolve Staff Investigation on Unauthorized Switches

Direct Energy, LP would pay an administrative penalty of $28,000 under a settlement with Staff of the Public Utility Commission of Texas to resolve an investigation into several alleged violations of the consumer protection rules, including enrollment of a customer without authorization.

Specifically, Staff alleged that Direct was not in compliance with several provisions of the Commission's customer protection rules for retail electric service, including the following:

a. P.U.C. SUBST. R. 25.474(h), relating to telephonic enrollment. Staff alleged that Direct violated the rule by enrolling customers without proper authorization by the applicant.

b. P.U.C. SUBST. R. 25.474(i)(1), relating to record retention. Staff alleged that Direct violated the rule by failing to provide a copy of the third party enrollment recording upon request by the Commission.

c. P.U.C. SUBST. R. 25.474(j), relating to right of rescission. Staff alleged that Direct violated the rule by failing to honor a customer's request to rescind the enrollment without penalty for a period of three federal business days after the customer received the Terms of Service (TOS).

d. P.U.C. SUBST. R. 25.475(e)(2), relating to affirmative consent. Staff alleged that Direct violated the rule by re-enrolling an existing customer without the customer's affirmative consent.