For Immediate Release: 05/04/15

Audrey Zibelman, CEO

Contact:
James Denn | James.Denn@dps.ny.gov  | (518) 474-7080

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May 04, 2015

Investigation Launched Into Prominent Energy Retailer

Ambit Energy Under Regulatory Scrutiny After Sharp Rise in Complaints

ALBANY — Audrey Zibelman, Chief Executive Officer of the Department of Public Service, announced today that the Department’s Consumer Advocate, created in response to Governor Andrew M. Cuomo’s efforts to make sure consumers receive the utmost protection and service from energy service companies and regulated utilities, is conducting a detailed investigation into Ambit Energy, one of the largest competitive energy companies in the State. The investigation was prompted by a noticeable spike in customer complaints in recent months filed against Ambit, primarily over higher-than-expected charges on electricity bills. Ambit is cooperating in the investigation.

 

 “Department staff has already determined that some customers may not have received proper notification at the end of their contract term and in other cases the company may not have calculated the rebates to guaranteed savings customers accurately,” said CEO Zibelman. “The staff also has concerns over the apparent lack of renewal notices, customer disclosure statements, as well as Ambit’s practice of moving people off the guaranteed-savings plan into a variable rate plan that had significantly higher rates than the utility.”

 

The Department of Public Service’s Consumer Advocate is leading the investigation into Ambit’s activities. The Consumer Advocate ensures that regulated energy, telecommunications and water utilities, as well as third-party service providers, such as Ambit, adhere to Commission rules regarding the customer services.

 

Energy service companies such as Ambit are required to comply with the Department’s Uniform Business Practices (UBP) to sell natural gas and electric services in New York. Failure to comply with the UBP may result in a variety of measures, including the State Public Service Commission revoking a competitive energy provider’s eligibility to serve customers in New York. Ambit customers who believe their rates were not accurate are encouraged to file a complaint with the Department. Customers can file a complaint via the following link: www.dps.ny.gov/Consumer_Complaints.html

 

The Department closely monitors the number and types of complaints received against all utilities and energy service companies operating in New York State. The Department ensures that utilities and energy service companies fulfill their obligations to provide effective customer service in compliance with the laws, rules, regulations and policies that the Department enforces. Consumer complaint statistics can be found on the following web page. http://goo.gl/GcMrPP

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