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Direct Energy Services, LLC and Staff of the Public Utilities Commission of Ohio have entered into an amended settlement agreement to resolve all the issues identified by Staff in a Notice of Probable Non-Compliance dated June 10, 2021 (Notice Letter), which had alleged, “that representatives of Direct Energy provided misleading and deceptive information to consumers; that Direct Energy failed to maintain accurate records; and that Direct Energy’s enrollment information is incomplete.”

Direct Energy and Staff had previously entered a settlement to resolve the matter in June 2022. 

Direct Energy and Staff have now agreed to an amended settlement and the Office of the Ohio Consumers’ Counsel (OCC)takes no position for or against the Amended Settlement.

Highlights from the amended settlement:

Direct Energy agrees to make a one-time donation of $100,000.00 to the Dollar Energy Fund to fund grants to be used for bill payment assistance programs for Ohio consumers.

For a period of 12 months commencing with approval of the Amended Stipulation without material modification, Direct Energy agrees during such time period when enrolling customers in Ohio to not use the digital third-party verification option authorized for it in the September 26, 2019, Entry in Case No. 18-382-GE-WVR and extended in the February 21, 2024, Finding and Order in Case Nos. 17-1843-EL-ORD et al.

The amended settlement provides that Direct Energy agrees to pay a forfeiture of $275,000.

Direct Energy agrees to reach out to certain applicable customers and provide them with an opportunity to cancel service without any penalties or re-enroll with Direct Energy.

Direct Energy has indicated that it has implemented/provided or will implement the actions set forth below as soon as is practicable after the Commission approves the Amended Stipulation:

1. Has provided Staff with a plan to come into compliance with Commission rules. The plan should address, at least, enrollment practices, an auditing process for enrollments, and any corrective actions to be implemented by Direct Energy.
2. Has submitted to Staff a list of all vendors, contact information, and agents that have marketed on behalf of Direct Energy for the period of December 1, 2020, through May 31, 2021. Also include the number of attempted enrollments for the identified agents along with the number of successful enrollments.
3. Has reviewed all door-to-door enrollments completed within the 3 months preceding the Notice Letter, and has taken/will take the following actions:
   1. Review each contract, third-party verification, and other enrollment documentation for completeness, accuracy, and customer consent.
   2. Contact each customer where enrollment documents are not complete, or the customer’s consent is not certain.
   3. Give each customer contacted in 3.b. above, the option to cancel without any penalties or to re-enroll with Direct Energy, in which case, new enrollment and consent must be obtained in accordance with Ohio Adm.Code 4901:1-21-06 and/or 4901:1-29-06.
   4. Review all customer complaints that noted similar issues with the sales representatives to determine patterns of misleading and deceptive practices.
4. Has provided Staff with telemarketing calls for the period of January 31, 2021, through February 6, 2021, including a listing of all vendors.
5. Has reviewed all marketing and sales scripts for compliance with rules and has submitted updated versions of these documents to Staff for review. If Direct Energy modifies its scripts in the 12 months following the Commission’s approval of this Amended Stipulation, Direct Energy will submit the updated scripts to Staff.

Direct Energy Testimony  (03/15/2024)
Stipulation & Recommendation  (06/10/2022)
22-583-GE-UNC  (06/10/2022)