Posts Tagged Price Of Electricity

Energy Plus Complaints

Wednesday, March 16th, 2011 | Permalink

 

We have been receiving several complaints coming in from Energy Plus customers and would like to know if there is any truth to some of these statements. We would also like to hear the other side of the story from Energy Plus if possible and maybe they can help in providing a response in case there is simply a bit of customer confusion regarding what they thought they signed up for and what they were actually charged.

I assume what is really going on is confusion regarding a variable electricity price but would like to hear from you the customer in case it is more than that.

We do not sell or represent Energy Plus but since we sell electric service in some of the same states as Energy Plus our customers and potential customers bring them up from time to time with their issues.

The complaint involves the perception that they will get a competitive electric rate but when the bill comes these customers have complained that the rate just isn’t competitive to them when comparing Energy Plus to their old electric company.

What I think may be happening is that potential customers of Energy Plus see an ad for their electricity service and might even see that it says “competitive”

These customers sign up with the impression that they have chosen a “competitive” electric company but not really knowing what they mean by competitive.

Once the customer gets their bill they see an electric rate or final bill total that does not fit in their expectations of “competitive”.

It could be possible that these Energy Plus customers are choosing a variable electricity rate plan with this company.

When you go with a variable electric rate you are picking an electric supplier that has the option of raising the price you pay for electricity based on what the energy fuel market does.

Since electricity is generated using raw fuel commodities like natural gas this factor can cause changes in the price of electricity each and every month.

With a variable electric rate it is possible the price of electricity could go down but if it goes up it can cause concern and even a misconception that a scam has taken place.

From my analysis I assume Energy Plus is not scamming anyone but I can understand how electric service customers could assume that competitive means they will get their first bill showing cheaper electricity costs than with their previous provider.

It is not uncommon that these Energy Plus electric company customers may think their price will remain the same or always go down in price for as long as they remain a customer.

If the price ever goes up this situation can be a cause of fear and concern and opinions can rush to judging Energy Plus as a scam when it could just be that the customer had not fully wrapped their head around the fact that they chose a variable electric rate that has e potential to change in price.

To avoid price unpredictability and lack of assurance in electricity price a “Fixed Rate” is a better option for a risk averse customer. The fixed rate is locked in for an agreed upon time period.

Energy Plus electric companyUsually prior to a fixed rate expiring a letter or notice of some kind is sent out giving the customer the chance of locking in again at a new fixed rate or choose to go shopping again among multiple electricity suppliers.

If a variable electric rate is of concern to you consider choosing a fixed rate with Energy Plus if this is a rate plan that they offer.

In summary the Energy Plus complaints although sincere may be simply a lack of understanding in regards to what variable prices can do.

Here is an Energy Plus Complaint from Kurt G. that was written February 20th 2011:

Kurt G. – Responding to your post I can tell you that my rate was a variable rate as was the majority of the many complaints about Energy Plus’s overcharging. Energy Plus does not make available on there website or over the phone their rates. They will tell you that their goal is to be competitive. As for the fixed plan contract, it is debatable if this has much upside. We do know that right from the start, you pay higher rates and unless rates go way up, you will continue to pay a higher rate on average. As for your mother’s advise, I would say that my mother also had good advise, if it looks like a scam, sounds like a scam, it most likely is a scam. Please read my post that I’ve put on several other sites and maybe you will be convinced of Energy Plus’s deceptive practices.

Some of the Energy Plus service areas are:

Connecticut
Illinois
Maryland
New Jersey
New York
Pennsylvania
Energy Plus Texas

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