Electric Shock: Competitive Electricity Supplier Agrees to Pay Millions in Restitution over Allegations of Misleading Energy Consumers

  • Massachusetts AG Maura Healey reached a settlement with competitive electricity supplier Starion Energy, Inc. and related individuals (collectively “Starion”) to resolve allegations that Starion used deceptive and unsolicited telemarketing calls and robocalls to sell its services in violation of the Massachusetts Consumer Protection Act and Telemarketing Solicitation Act.
  • The complaint alleged that Starion and certain telemarketing companies falsely promised prospective customers lower electricity rates then signed them to variable rate electricity contracts through which customers collectively paid millions of dollars more than they would have paid had they stayed with their original utility company.
  • According to the AG’s office, under the terms of the consent judgment, Starion will pay up to $10 million including $7.25 million in restitution to affected customers and $250,000 in penalties to the state. Of the remaining $2.5 million, $2 million will be forgiven if Starion complies with the terms of the settlement which include not enrolling any new Massachusetts residents in a variable rate contract for a three-year period and hiring a monitor to implement a compliance program to ensure that Starion complies with state consumer protection laws, among other things. The portion of the $2.5 million amount that is not forgiven will fund energy assistance programs.