Connecticut forces halt to robocalls by energy company accused of selling overpriced contracts
A Texas energy company has agreed to halt illegal robocalls that Connecticut officials said Friday resulted in electric customers paying as much as $15,000 more than if they remained with their supplier.
At least 559 residential customers will be reimbursed an average $27, with a range of between $1 and $350, and dozens receiving more than $100. They had enrolled in overpriced contracts with Spark Energy Inc. as a result of an illegal robocall campaign, according to state Consumer Protection Commissioner Michelle Seagull and Attorney General William Tong.
The Houston retail energy services company was fined $500,000 by the Public Utilities Regulatory Authority over accusations it misstated charges, failed to identify itself as the company engaged in telemarketing and that the purpose of the sales calls was to sign up new customers.
Spark Energy said in an email it’s “happy to have the matter settled and behind us so we can continue focusing on delivering excellent service to Connecticut customers.”
Telemarketers let loose nearly 152,000 prerecorded calls between May 17 and June 20, 2017, a state investigation found. The state holds Spark Energy liable for the actions of the telemarketer and subcontractor.
The prerecorded telephone solicitations violated the federal Telephone Consumer Protection Act that restricts robocalls and Connecticut Unfair Trade Practices Act, state officials said.
The state said Spark Energy cooperated with the investigation and made improvements to its marketing.
Tong accused Spark Energy of using “illegal robocalls to trick consumers into overpaying for electricity.” The restitution and PURA fine “should send a strong message” to third-party electric suppliers that Connecticut will aggressively enforce its consumer protection laws, he said.
Seagull said the excessive bills “are even more damaging when consumers overpay for basic goods and services like electricity.”
Connecticut has battled electric suppliers before. In March, the state Public Utilities Regulatory Authority said it will issue credits to about 100,000 customers as part of an investigation of rate violations.
Consumers have complained for years about the practices by some third-party electric suppliers accused of raising prices and improperly marketing their service. In 2014, state officials said regulators received more than 1,300 complaints from consumers accusing electric suppliers and other companies of aggressive door-to-door sales pitches, violations of state and federal “Do Not Call” lists and misleading advertisements.
That year, Gov. Dannel P. Malloy and state lawmakers enacted legislation establishing tougher rules for the suppliers.
Stephen Singer can be reached at ssinger@courant.com.
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