Retail energy supplier SmartEnergy fined for misleading and deceptive behavior

Last week the Public Utilities Commission of Ohio (PUCO) assessed a $122,000 fine and ordered SmartEnergy Holdings, LLC to issue credits to certain customers, and honor rebate incentives it promised customers when enrolling for service.

“Misleading and deceptive behavior by retail energy providers will not be tolerated in Ohio,” stated PUCO Chair Jenifer French.

A PUCO investigation determined that SmartEnergy was providing customers misleading and deceptive information, specifically:

  • Telling customers they would be protected from rate increases;
  • Telling customers they are eligible to claim a gift card they are not yet eligible for;
  • Charging extremely high variable rates, sometimes as much as $0.299 per kilowatt hour;
  • Enrolling customers who are clearly confused;
  • Not providing required notice that contract terms are nearing expiration.

The PUCO’s investigation began after multiple complaints to the PUCO call center during 2022.

The Commission ordered SmartEnergy to identify all customers charged $0.299 per kWh and rerate their bills to the utility’s standard service offer at the time. SmartEnergy will be limited to offering only fixed-rate contracts to customers for a 24 month period. SmartEnergy will also pay a $122,000 civil forfeiture to the State of Ohio.

“This decision provides redress for aggrieved customers,” added PUCO Commissioner Larry Friedeman. “Our order sets forth prescribed conduct governing customer acquisition and contract administration for both current and newly acquired customers.”

The PUCO operates a customer call center Monday – Friday 8 a.m. – 5 p.m. and is available to help answer questions, field complaints, or educate Ohioans on their energy choice options. Contact the PUCO Call Center by calling 800-686-PUCO (7826) or by visiting us online at PUCO.Ohio.gov.

A copy of Wednesday’s finding and order is available by visiting the PUCO website at PUCO.Ohio.gov and clicking on the link to Docketing Information System and searching case number 23-601-EL-UNC.

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