Retail Supplier Enters $220,000 Settlement With PUC Staff, Will Return Subset Of Customers To Default Service

August 3, 2023

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Copyright 2010-23 EnergyChoiceMatters.com
Reporting by Paul Ring • ring@energychoicematters.com

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XOOM Energy Ohio, LLC (XOOM) has agreed to a forfeiture of $120,000 and would return certain subsets of customers to default service under a stipulation with Staff of the Public Utilities Commission of Ohio to resolve alleged violations raised in prior Staff reports, including alleged slamming

XOOM Energy Ohio provided the following statement concerning the matter:

"We appreciate the support of the PUCO Staff and OCC in bringing this matter to a resolution in a way that benefits Ohio energy customers. As soon as Xoom Energy became aware of this issue in early 2021, we reported to PUCO Staff and took immediate proactive steps to mitigate any impact to the customers who were affected."

--- Statement from XOOM Energy Ohio

As more fully detailed in our prior story, Staff had alleged, "Staff’s investigation found that more than one independent representative of XOOM’s channel partner, ACN Inc., was soliciting Ohio consumers via telephone then enrolling the customer through Xoom’s website, giving the appearance of an internet enrollment instead of a telephonic enrollment. Xoom’s agent completed the enrollment online, not the customer."

See more background on the alleged behavior here

While Staff and XOOM had previously reached agreement on various corrective actions and certain re-rates, XOOM and Staff had not, until now, been able to reach an agreement to fully resolve the matter

The newly filed settlement states, "After complaints by consumers regarding unauthorized enrollments by XOOM, XOOM discovered an issue with enrollments involving one of the representatives contracted by ACN, Inc., an independent marketing and sales vendor of XOOM. The issue was simultaneously discovered by the Commission Staff, in February 2021. XOOM promptly conducted an extensive review of numerous Ohio customer records related to enrollments involving the independent representative of ACN, Inc. from January 4, 2021 to April 1, 2021."

The settlement states, "Based on the above reviews, XOOM implemented additional consumer protection enhancements to its sales quality processes."

The settlement states, "XOOM responded appropriately to, and resolved the unauthorized enrollments involving the improper tactics used by the independent representative of ACN, Inc. XOOM implemented corrective actions relative to the independent representative."

The settlement states, "XOOM implemented a Daily Alert report regarding e-mail domain use for multiple enrollments. XOOM shall continue to use Daily Alert reports for all Ohio consumer enrollments and investigate e-mail domain enrollment anomalies."

The settlement states, "XOOM shall continue to use eIDVerify for all its Ohio residential consumer enrollments regardless of whether the consumer’s IP address is within or outside of Ohio, for a minimum period of 24 months from the approval of this Stipulation by the Commission."

The stipulation provides that, for an agreed-upon and identified subset of 284 customers whose enrollments with XOOM were part of the review of enrollments in the first six months of 2021 and involved the channel partner, ACN, Inc. (hereafter, "Subset A"), XOOM agrees to return such customers to their utilities’ default service and rerate the customers based on the difference between the rates charged by XOOM (if such rates exceed the utility’s default service rate) and the applicable utility default service rates. XOOM also agrees to refund to each customer an amount equal to $75.00 for each account being returned to default service.

The settlement provides that, for any of the "Subset A" customers who provide verifiable evidence to XOOM that they were charged a switching fee when switched to XOOM’s service, XOOM agrees to issue a full credit or refund for such switching fees charged.

The settlement provides that, for any of the "Subset A" customers who provide verifiable evidence to XOOM that their previous supplier charged an early termination fee as a result of the switch to XOOM’s service, XOOM agrees to issue a full credit or refund for such early termination fees.

For an agreed-upon and identified subset of 25 consumers who contacted the Commission about their enrollment with XOOM in 2021 and 2022 (Subset "B"), the settlement provides that XOOM agrees to return any consumers that were enrolled with XOOM to their utilities’ default service and rerate such consumers based on the difference between the rates charged by XOOM (if such rates exceed their utility’s default rate) and the applicable utility default service rates. XOOM also agrees to refund to each customer an amount equal to $75.00 for each account being returned to default service.

For any of such Subset "B" customers who provide verifiable evidence to XOOM that they were charged a switching fee when switched to XOOM’s service, XOOM agrees to issue a full credit or refund for such switching fees charged, the settlement provides

For any of such Subset "B" customers who provide verifiable evidence to XOOM that their previous supplier charged an early termination fee as a result of the switch to XOOM’s service, XOOM agrees to issue a full credit or refund for such early termination fees, the settlement provides

The stipulation provides that, for every customer complaint forwarded to XOOM from the Commission or received by XOOM directly from a customer about an unauthorized enrollment that occurred from January 1, 2021 to the present date by ACN Inc., and that is confirmed by XOOM to be an unauthorized enrollment, XOOM will return all such customers not already addressed by [the subsets listed] above to the utilities’ default service and provide rerates based on the difference between the rates charged by XOOM (if such rates exceed their utility’s default rate) and the applicable utility default service rates.

XOOM agrees to a forfeiture of $120,000 upon approval of the stipulation by the Commission

Under the settlement, XOOM agrees to make a one-time donation of $100,000 to the Dollar Energy Fund to fund grants to be used for bill payment assistance programs for Ohio consumers within ten (10) business days of a Commission Order approving this Stipulation.

The stipulation states, "This Stipulation is not an admission or a finding of violation or liability."

Case No. 22-267-GE-COI

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