|
|
|
|
|
Regulator Issues $3 Million Notice Of Violation Against Retail Supplier
The following story is brought free of charge to readers by VertexOne, the exclusive EDI provider of EnergyChoiceMatters.com
The Connecticut PURA has formally issued a Notice of Violation and Assessment of Civil Penalty (NOV) against Major Energy Electric Services, LLC (Major, Major Energy, or the Company) for alleged violations of certain statutes, marketing standards and PURA rulings due to allegedly accepting enrollments from Utiliz Services, LLC (Utiliz), with the NOV alleging that Utiliz impermissibly acted as an agent for Major while allegedly also acting, or purporting to act, as the agent for the customer
The NOV does not constitute a final action by PURA, and Major Energy has the right to request a hearing to contest the NOV
The NOV issued by PURA largely follows a proposed NOV sought by PURA's Office of Education, Outreach, and Enforcement (EOE), which had been exclusively first reported by EnergyChoiceMatters.com
Full details of the NOV and the basis for the allegations can be found in our prior story here
At the time that EOE had requested the issuance of the NOV in early May, Major Energy had provided the following statement concerning the matter:
"We don’t comment on ongoing regulatory matters. However, Major Energy is cooperating with PURA on this matter and remains firmly committed to complying with the rules & regulations in Connecticut."
--- Statement from Major Energy
Utiliz Services, LLC issued the following statement concerning the matter:
"Utiliz is aware of the proceedings and disagrees with PURA's view of the situation. The LOAs reviewed by PURA were merely one piece of the equation and are quoted out of context. Those agreements granted Utiliz the authorization to enroll the customers with another provider. The purpose of that document was to authorize the completion of the enrollment without the customer being overwhelmed by the process. Separately, each Utiliz customer agrees to the 'Autopilot Energy Authorization & Broker Agreement,' which explains that Utiliz works to find competitive deals for its customers with a goal of saving them money. The customers specifically agreed that Utiliz would (a) choose their provider for them, (b) complete the enrollment for them, and (c) be paid fees from the provider chosen."
--- Statement from Utiliz Services, LLC
As more fully detailed in our prior stories linked above, the NOV alleges both violations allegedly undertaken by Major itself, and violations alleged to have been undertaken by Utiliz Services, LLC, with the NOV stating that Major is responsible for the actions of its agents
In brief, the NOV alleges that Utiliz Services, LLC acted as an agent of Major, while Utiliz Services, LLC represented to customers that Utiliz Services, LLC was the customer's agent, including for a period during which Utiliz Services, LLC previously held a Connecticut aggregator certificate (aggregators in Connecticut are only permitted to represent the customer and may not be an agent of a supplier)
The NOV alleges that such behavior was deceptive, and thus any resulting enrollments are invalid.
The NOV also alleges that Major should have known that it could not rely on LOAs signed by the customer with Utiliz Services, LLC for enrollments during the time period in which Utiliz Services, LLC held an aggregator certificate because the NOV alleges that Utiliz Services, LLC was acting as Major's agent at such time. The NOV alleges Major should have known that it could not rely on LOAs signed by the customer with Utiliz Services, LLC for enrollments which occurred after Utiliz Services, LLC relinquished its aggregator certificate, because, without an aggregator certificate, Utiliz Services, LLC could not legally represent customers or enter into an LOA to act as the customer's agent
As of publication time, no Notice of Violation against Utiliz has been issued or proposed. Utiliz Services, LLC is not currently a licensed aggregator in Connecticut.
In addition to a proposed $3 million civil penalty against Major, the NOV would provide that Major shall be required to return to default service any of its customers enrolled by Utiliz who are paying in excess of the default service rate. The NOV would further require that Major shall reimburse any such customers the difference between the rate the customer paid and the standard service rate for the entirety of the time the customer’s rate has been greater than standard service.
Docket 14-03-03
ADVERTISEMENT ADVERTISEMENT Copyright 2024 EnergyChoiceMatters.com. Unauthorized copying, retransmission, or republication
prohibited. You are not permitted to copy any work or text of EnergyChoiceMatters.com without the separate and express written consent of EnergyChoiceMatters.com
May 21, 2024
Email This Story
Copyright 2024 EnergyChoiceMatters.com
Reporting by Paul Ring • ring@energychoicematters.com
NEW Jobs on RetailEnergyJobs.com:
• NEW! -- Energy Regulatory Specialist
• Sr. Market Risk Analyst -- Retail Supplier
|
|
|
|