The complaint is always the same and basically goes something like this, “I thought I was signing up on a competitive rate but my rate is much higher than my previous electric company.”
As you can see this is a generic example of the many complaints I have read that call Energy Plus the Energy Plus scam. In reality Energy Plus is offering a variable electric rate as one of their most popular electric rate plans.
I would jump to guess that many people choose the variable electricity rate with Energy Plus because the initial electric rate does look competitive.
The problem with choosing a variable electric rate is that many people look past the part on the contract that says that the electric rate is subject to change in price after the first month.
Some electricity companies in Texas and Pennsylvania will even change the rate the first week of switching on a variable rate plan. As far as we know Energy Plus does not change your electric rate within the first week on their variable plan.
I mention the situations in which some people have even had their rate change sooner than a month so you know the industry standard is for the rate to change after the first month.
My conclusion is that the Energy Plus Scam is not a scam at all but possibly just a lot of customer confusion associated with reading that the variable rate would be competitive .
Energy Plus customers expectations were thinking that competitive was for a longer term than just one month which is understandable and it might help if it was a little clearer some how to set expectations that a fixed rate may be a better competitive rate for these customers.
So in summary, a variable electric rate with Energy Plus may only be competitive the first month which is typical of a variable rate plan. You may have just not gotten that message clearly but variable prices are usually for people who want to try before committing for a year long plan.
If you feel like your expectations were not met with an Energy Plus variable electric plan consider asking them about their fixed rate plans.
Before switching to a fixed rate with Energy Plus ask if all fees and charges are bundled into the rate and if they can give you a total average of what the fixed rate will look like.
You could follow up by asking what other charges may appear on the electric bill beyond the fixed rate. You can even go further by asking if when taking the advertised rate, multiplying it by the kilowatt hours used, and adding sales tax, will give you all charges you will be asked for on your bill.
If this request does not throw the ball in the energy providers court to be very clear what you will be charged I do not know what else will.
We do not represent Energy Plus or sell their electricity service but I thought this article would be helpful in clearing up much confusion I see out there in the blogosphere.