Ambit Energy “Budget Billing” Class Action: Ambit markets itself as a less-expensive alternative to existing utilities, telling potential customers to “stop paying too much for electricity.” Unfortunately, customers who switch find just the opposite – and end up actually paying way too much for energy. Ambit’s budget billing plan, which it offers to consumers in several markets across the United States, is a prime example. Rather than helping customers manage their energy charges, Ambit’s budget billing plan breaks customers’ budgets with hidden charges.
Ambit’s website states that the energy company calculates the average monthly amount owed by a budget billing customer and then bills the customer a set monthly rate based on the average rate. Ambit’s budget billing customers pay only the set rate, but if their energy costs are higher than the average rate billed these customers will carry a balance.
Ambit touts its budget billing program as a “convenient way to help you budget your household expenses and avoid the highs and lows of the usual energy bill.” The truth is, however, that Ambit’s budget billing plans mask the company’s exorbitant energy rates by (1) failing to inform customers that their budget payments are not covering all amounts due, and misrepresenting the balance customers actually owe, and/or (2) adding additional budget billing “settlement” charges on customers’ final bills that are in addition to any balance owed. As a result, unsuspecting budget billing consumers pay Ambit’s monthly bills without knowing that they are accumulating additional fees that Ambit later springs on its customers.
Only through a class action can the Company’s customers remedy Ambit’s ongoing wrongdoing. Because the monetary damages owed each customer by the Company are small compared to the much higher cost a single customer would incur in trying to challenge Ambit’s unlawful practices, it makes no financial sense for an individual customer to bring his or her own lawsuit. Further, many customers don’t even realize they are victims of Ambit’s deceptive conduct. With this class action, Wittels Law and its clients seek to level the playing field and make sure that companies like Ambit engage in fair and upright business practices.
For more information, or to join this case, contact us.